In most organizations, employee performance reviews happen once a year and rarely, if ever, add any value to the business, the relationships between managers, or staff and employee engagement levels. In fact, there is growing evidence that the traditional annual employee review can harm all three.
Here are some signs that your review process might be doing more harm than good:
1. There is nothing in it for your employees.
The review is based on what the manager can remember about their recent performance because there is no system in place for monitoring progress against goals throughout the year. The manager is cautious about giving positive feedback in case staff asks for more money.
2. No one can remember the last time employees’ efforts were recognized. Rewarding achievement is great, but if you want to keep people striving to improve, recognize their efforts from time to time, too.
3. Employee engagement and job satisfaction levels are declining, but you have no way of finding out exactly why.
4. There is no advice or coaching for managers on how to effectively conduct a performance review, so they don’t deal with performance issues because of their fear they may get the company sued.
5. Employees and managers are still using outdated paper forms. Most people accept that reviewing performance on a regular basis will raise everyone’s game and improve the businesses performance BUT few companies have an adequate system for going it.
6. Everyone avoids doing the performance reviews until the last minute because the system is a nightmare.