Employee performance reviews: productive or destructive?

Employee Performance Reviews: PRODUCTIVE DESTRUCTIVE? OR An annual performance review is an analysis of one's job performance over the previous year. Unfortunately, employees often leave their annual reviews feeling confused, disappointed, or worse-resentful. HERE'S WHY. PROBLEMS WITH TRADITIONAL PERFORMANCE REVIEWS O They happen only once a year O Feedback is based on the perspective of just one person O They usually focus on the negative O Stressful for both the employee and manager O The reviewer is not always the person who manages the employee day to day O They function as a time stamp and are viewed as a requirement or obligation The traditional 1-5 rating scale is generic across multiple departments O A year's worth of work can't be summed up on a 1-2 page checklist O Managers tend to use the most recent event as a marker for an entire year's performance (known as the Recency Effect) O Annual reviews are too closely tied to salary Managers rarely follow up on goals set during performance reviews 90% of performance reviews are painful and ineffective of performance reviews end up decreasing employee performance - Society for Human Resource Management 30% -The Psychological Bulletin INCREASE IN Decrease in productivity, morale, and job satisfaction among employees Inaccurate or Increase in unsatisfying reviews stress and TURNOVER anxiety RATE Feeling underappreciated is the #1 REASON most Americans quit their jobs EMPLOYEES DREAD REVIEW TIME ... 51% Loem pm der met corctuer adpi ddan of employees believe annual reviews are inaccurate ... AND SO D0 MANAGERS 58% Managers cite performance reviews as their second most-hated task (after firing someone) of managers think employee performance reviews are not an effective use of time BEST PRACTICES FOR MORE EFFECTIVE REVIEWS GIVE FEEDBACK RIGHT AWAY, DON'T WAIT UNTIL REVIEW TIME 71% of employees prefer immediate feedback (even if it's negative) FOCUS ON THE REVIEW ITSELF INSTEAD OF THE PAY INCREASE USE CASE Kelly Services cut ties between annual score-based reviews and pay raises. They implemented a "total rewards approach," where pay raises are based on incentives, recognition, and other rewards. -Stacia Garr, Bersin by Deloitte PRIORITIZE DEVELOPEMENT OVER EVALUATION 70% of employees think reviews should focus on skill development and professional growth GIVE RECOGNITION FOR THE POSITIVES Positive recognition can increase engagement by 60% 90% of employees are more motivated by positive feedback IMPLEMENT PEER REVIEWS 00 88% of peer-reviewed employees are happier with their jobs. USE CASE After Pepsico introduced the 360-degree feedback model, nearly 90% of executives said the system was a superior development tool compared to their previous experiences. -ETS WANT MORE VALUABLE FEEDBACK? MAKE YOUR REVIEW PROCESS AS QUICK AND EASY AS POSSIBLE USE CASE When Quicksilver introduced a web app system for company performance reviews, their completion rate jumped from 65% to 90%. -Case Study, Small Improvements https://www.officevibe.com/blog/whyannualperformancereviewsdontwork http://www.businessnewsdaily.com/5366performancereviewtipsforbosses.html http://www.forbes.com/sites/ericjackson/2012/01/09/tenreasonsperformancereviewsaredoneterribly/2/ http://www.forbes.com/sites/davidkwilliams/2014/06/05/3reasonscompaniesshouldabolishemployeeperformancereviewsnow/ http://www.reviewsnap.com/ http://www.forbes.com/sites/victorlipman/2012/07/19/theprosandconsofforcedrankingsamanagersperspective/ http://www.entrepreneur.com/article/225518 https://www.officevibe.com/blog/performanceappraisalinfographic http://www.globoforce.com/gfblog/2013/infographicthestartlingtruthaboutperformancereviews/ A findmyshift DX