Performance reviews today - why the bad press?

Performance reviews in the modern world - why the bad press?

Performance reviews, often referred to as appraisals, are a performance management tool. The value of annual reviews has increasingly been challenged in recent years; however, performance appraisals remain an important part of the performance management cycle.

But why do performance reviews get negative feedback or why do people dread them?

  • The process is not clear or transparent. People aren't sure when the reviews happen or what to expect from the review and what's going to happen as a result.
  • It is seen as an opportunity for a manager to give bad news. Nothing should come as a shock in the appraisal process, so if there is feedback to give to your people you should be doing that in a timely manner and not saving it up for that review process.
  • It’s not aligned with company goals and objectives. Performance appraisal can feel quite meaningless and quite disjointed, so people should know what you’re looking at when reviewing goals progress.
  • No constructive feedback provided. Those difficult conversations can be avoided or the feedback's given with any sort of pointers on how improvements can be made or what that means in terms of role progression, but they need to be constructive.
  • Not a two-way conversation. We've probably all experienced when we sat into in an appraisal process and there's not been an opportunity for you as the person being appraised to give your feedback or your thoughts on that. In this way, reviews can not add as much value as they should if it's not a two-way conversation.
  • Lack of recognition. Traditionally (and quite rightly) you expect to be recognized within an appraisal situation if they're not then it can feel disappointing and demotivating.
  • Nothing changes as a result. If you have these conversations and goals and objectives are talked about and then nothing is followed up and nothing happens as a result likewise if you don't get any written follow-up for you to refer back to - then again the entire review process can feel pointless.

Are the performance reviews still relevant? 

Yes! Whilst outdated approaches still exist, more and more organisations are realising the value of performance reviews. When done right, they provide useful feedback to the company, improve motivation, drive career development and help businesses achieve their goals. 

Benefits of performance reviews 

1. Productive conversations

2. Build trust and rapport

3. Give employees a voice

4. Identify development opportunities

5. Achieve business goals

6. Motivate and engage 

Companies that conduct effective performance reviews are 30% more likely to meet their financial target and three times as likely to manage change successfully.

Performance management is a process that should include goal setting, feedback, development, recognition, and coaching. It needs to be built on a foundation of trust and empowerment and incorporate a constant flow of communication.

Tips for running effective performance reviews 

Feedback and recognition needs to be a consistent priority within an organisation, before, during and after performance reviews.

If feedback and recognition are considered the norm, reviews will be less anxiety-inducting, and employees won't have such a negative perception.

Performance reviews will be seen as a positive, formal exercise designed to help growth within a consistent, empowering culture. 

Communicate the benefits 

Ensure it is understood why the performance review is important, how it relates to the company goals and that it is a constructive conversation. 

Demonstrate the benefits

If employees don’t believe anything will change as a result of the performance review, they are less likely to engage in the process and it will become nothing more than a box ticking exercise. 

Create the right culture 

Look at your culture, ensure it is one of positive feedback and recognition.

Performance reviews in a hybrid world 

Hybrid work models are used by 63% of high-growth companies.

Hybrid work requires a higher degree of trust between leaders and their teams, as well as a culture that’s focused on results, rather than the hours worked to achieve them.

1. Set clear goals 

Ensure everyone has a clear understanding of what results need to be achieved. 

2. Tie goals to company objectives

Before setting individual goals be clear on what the company is trying to achieve. 

3. Focus on results not time 

Shift the focus away from time spent on a task to the value-added and results achieved. 

The link between performance and employee engagement

  • High-performing employees are the most engaged
  • Constructive feedback is a motivator
  • When done right, performance reviews are an effective driver in retaining top talent 

Why is employee engagement so important? 

An engaged employee is someone who feels valued, they go above and beyond, they are more innovative, they will take less time off sick, have less performance issues and are less likely to leave.

An engaged workforce is a key to business success.

  • 37% of employees consider recognition most important. 
  • Those teams who score in the top 20% in engagement experience 59% less turnover.
  • Only about 34% of the US workforce feel engaged.
  • A Gallup employee engagement statistics poll reveals that 53% of workers in the US are non-engaged.
  • Nearly 66% of all employees are disengaged.
  • One in five employees is not confident that their manager will provide regular, constructive feedback on their work.
  • Highly engaged employees are 87% less likely to leave their place of work.
  • Globally, only 15% of employees are engaged in their work.

How Can Lanteria Help? 

Drive productivity and engagement of employees for outstanding business results with Lanteria's Employee Performance Solution.

Establish a collaborative review process with automated workflows, reminders, and notifications, resulting in more accurate results in a shorter amount of time.

Create easy-to-use evaluation and review forms for various review types and employees.

Identify and develop the top talent in your organization, increasing retention, promoting your best, and ensuring a solid succession plan designed for the future.

Get a full performance analysis with charts and reports that give a clear picture of current productivity levels.

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