Performance Reviews: Worthy Effort? Or Waste of Time?

By Toni Cascio, Ph.D.

"Has difficulty learning and applying new skills."

"Requires frequent guidance and supervision." (i)

Are these comments from report cards or performance reviews? It's hard to tell the difference, isn't it? So it's no wonder employees and mangers alike greet annual performance reviews with about as much enthusiasm as kids do report cards.

In fact, OnPoint Consulting observed that, "Many professionals see performance management as a dreaded chore that yields little obvious payoff." (ii)

Recent research echoes this widespread dissatisfaction with the annual performance review process:

Mercer found that although 91% of businesses surveyed conduct annual performance reviews, a significant 56% of them believe their feedback process "needs work." (iii)

According to OnPoint Consulting, only 45% of HR professionals and 44% of line managers believe their performance management systems add value to their business, and about the same think the performance review process is worth the time it takes. (iv)

OnPoint also reported that only 45% of respondents believe their organization's current rating scale enables managers to accurately differentiate levels of performance. (v)

Salary.com found that 61% of employees do not believe annual performance reviews contribute to improved performance. (vi)

Moreover, a recent article in The Wall Street Journal skewered the practice of annual performance reviews, calling them "little more than a dysfunctional pretense,” claiming that "even the mere knowledge that such an event will take place damages daily communications and teamwork." (vii)

Those are some mighty harsh words, but they're not altogether untrue. Many performance reviews are perfunctory, with little actual value. However, it is possible to conduct performance reviews that are useful.

Here are five ways to make formal performance reviews more worthwhile:

1. Get on the same page. Make sure employees know exactly what's expected of them, as well as what they're being rated on. It's not enough to just let them see in advance the rating form that will be used for evaluation. It's about explaining ahead of time what goals they must meet in order to receive a particular rating – and then following through with your word when they do or do not meet those expectations.

2. Allow involvement. If possible, construct the rating form with the worker and based on his or her job responsibilities and personal goals. If your organization's performance evaluation process doesn't already, be sure to include the opportunity for employees to complete a self-assessment. These self-assessments should be reviewed by the manager BEFORE he or she completes their portion of the employee's assessment.

3. Make it a dialogue. When you sit down to discuss the evaluation with the employee, make it a two-way conversation rather than just bombarding the individual with information. Ask his or her thoughts on the evaluation process, as well as specific items in the evaluation. Doing so will make the experience feel like less of a trip to the principal's office. Also keep in mind that the manager sets the tone for the conversation. The more open and honest he or she is, the more comfortable the employee will feel sharing his or her perspective.

4. Put in the effort. Remember that most people want to perform well. Checking off boxes with little explanation won't help someone improve his or her performance. Give specific examples to back up your rating whether it's positive or negative.

5. Train. Giving effective feedback is a skill – one that is rarely taught in business school let alone learned from osmosis. Make sure managers in your organization are educated in how to give appropriate feedback that will enhance performance and ultimately contribute to the success of the company.

Want to know more? Learn 7 more tips for giving (almost) painless feedback.

References

(i) http://www.halogensoftware.com Employee Review Feedback Form Samples
(ii) http://www.onpointconsultingllc.com "The Truth About Performance Management: Four Insights on Making Your System Work"
(iii) http://www.mercer.com "Go Figure: New Stud y Highlights Current Performance Review Practices"
(iv) http://www.onpointconsultingllc.com "The Below Standard Boost: Seven Ways to Head off Performance Issues at the Pass - Before They Poison Your Culture"
(v) Ibid
(vi) http://www.salary.com It's Performance Review Season; Is Your Process Working?
(vii) Culbert, S. "Get Rid of the Performance Review!" The Wall Street Journal, October 20, 2008.

Copyright © Bon Mot Communications LLC 2009

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