Why Performance Reviews Won’t Disappear

 
 
By Dennis McCafferty  |  Posted 06-13-2016 Email
 
 
 
 
 
 
 
 
 
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    Why Performance Reviews Won’t Disappear
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    Why Performance Reviews Won’t Disappear

    The formal performance review process can be draining, but reviews help align both employees and their managers on realistic goals and priorities.
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    Mixed Reading
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    Mixed Reading

    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.
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    Valued Feedback
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    Valued Feedback

    54% were pleased with their last performance review, and 65% said their last review was an accurate appraisal of their contributions.
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    Neglected State
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    Neglected State

    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.
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    Performance Review Drivers: Output Assessment
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    Performance Review Drivers: Output Assessment

    78% say their performance reviews are intended to benchmark what they accomplished during the year.
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    Performance Review Drivers: Same Page
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    Performance Review Drivers: Same Page

    77% say reviews are needed to ensure that both employees and their managers are aligned on realistic goals and priorities.
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    Performance Review Drivers: Objective Discussion
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    Performance Review Drivers: Objective Discussion

    70% say reviews are useful in setting goals for the following year.
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    Performance Review Drivers: Improvement Plan
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    Performance Review Drivers: Improvement Plan

    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.
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    Money Talks
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    Money Talks

    Only 43% of survey respondents express confidence that salaries and/or bonuses can be fairly determined without a formal, annual review.
 

Be honest with us: Are there times when you'd rather go to the dentist than give another performance review? It's never easy, after all, to come up with a comprehensive summary of an employee's valued contributions, outstanding work qualities and "improvement areas." And then there are review sessions that can get emotionally charged—especially when the staffer in question strongly disagrees with your assessment. Given these and other factors, some organizations are moving toward dispensing with this tradition. But a recent survey from Eagle Hill Consulting sends a "not-so-fast" message to managers who are considering such a step. The report, titled "The Annual Performance Review: Old-School or Timeless Tool?" reveals that—while they're collectively on the fence about chucking annual reviews—most professionals say their last one was a pleasing experience that accurately appraised their contributions. They say these sessions are helpful in benchmarking accomplishments for the past year, while setting expectations for the year ahead. The upshot: CIOs and other managers should seek feedback from their teams as to whether to replace the annual review—or simply give it a slight tweaking. "You must have an established system that gives your people an opportunity to discuss their areas of achievement as well as those in which they need improvement or seek growth," according to the report. "What that process should look like depends upon your company's unique culture and the needs and preferences of your employees." An estimated 1,600 professionals took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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