Why Formal Performance Reviews Won’t Disappear
The performance review process can be draining, but formal reviews help align both employees and their managers on realistic goals and priorities.
About half of survey respondents are in favor of eliminating the formal system of annual performance reviews. The rest either support these reviews or remain undecided about the topic.
54% were pleased with their last performance review, and 65% said their last review was an accurate appraisal of their contributions.
Just 55% say their manager provides to them informal feedback on job performance, signifying the continued relevance of the formal, annual review for those who don’t.
78% say their performance reviews are intended to benchmark what they accomplished during the year.
77% say reviews are needed to ensure that both employees and their managers are aligned on realistic goals and priorities.
70% say reviews are useful in setting goals for the following year.
62% say they find reviews helpful in establishing a set of actionable career development activities, while 49% say these reviews document performance as it relates to a future promotion.
Only 43% of survey respondents express confidence that salaries and/or bonuses can be fairly determined without a formal, annual review.