Is it time to get rid of the Performance Review?
In the last 5 years a number of large companies have done away with their annual performance review along with ratings that are linked to pay and bonuses. This is because, in general, the process is hated by all and instead of the desired results of commitment, purpose and improved performance it leads to disengagement, stress and constricts our openness to creativity and growth.
Brain research has shown that even employees who get positive reviews experience negative effects from the process. A 2013 survey by the Society for Human Resource Management asked HR professionals about the quality of their own PM systems; only 23 percent said their company was above average in the way it conducted them.
CEB found that 95 percent of managers are dissatisfied with the way their companies conduct performance reviews, and nearly 90 percent of HR leaders say the process doesn’t even yield accurate information.
So what's the alternative?
Regular check ins between leaders and their teams to see how they are progressing and what support they need to achieve. Along with coaching and mentoring to develop skills and competences in the workplace. A focus on Objectives and Key Results rather than Key Performance Indicators changes the conversation and links to achievement of purpose.
For further reading on the why and how of some well known large organisations read the article below:
