Some say performance reviews are a thing of the past; a waste of time for everyone involved. If you’re part of these naysayers then most likely you haven’t been part of a culture that embraces the year-round significance of performance reviews.
Performance reviews are essential to workplace management yet often times they hold lower weight amidst a sea of projects, to-do lists, meetings and more. Supervisors tend to look at performance reviews through jaded lenses, but what they may be overlooking is the fact that effective performance management leads to improved productivity. According to a survey by Towers Perrin, of 203 top executives across all industries, organizations in which employees were measurement-managed were identified as being in the top one-third of their industry. The findings indicated that employee performance reviews are the most important measurement tool separating a highly productive firm from the rest of the market.
Three Common Misconceptions
Performance reviews are more than rankings on paper; in fact, today they have evolved into a highly engaging tool for managers and employees alike. However, there are still a few misconceptions regarding performance reviews that need to be addressed:
- Performance reviews are a benefit for managers only
Transparency is appreciated in the workforce today. Employees have more responsibility and are encouraged to express their concerns and ideas. One unique way to encourage involvement from all levels in your organization is through 360 degree reviews. This opens the door for two-way communication between employees and management. Organizational leaders can offer feedback to employees and vice versa. 360 degree reviews are in conjunction with performance reviews and offer an additional way to improve workforce efficiency, productivity and engagement.
You can make this even more beneficial by having your employees self-assess. This allows your employees and managers to see exactly where your employees see themselves. The information gathered empowers both parties and opens up yet another line of dialogue between the employee and manager.
- Feedback should only happen annually
Whoever decided feedback was only necessary during annual performance reviews doesn’t understand the proper ways in which to communicate in the workplace. In order to be effective, feedback should be given on a regular basis. Feedback not only gives recognition to employees for their efforts, but it keeps them engaged and accountable. A great way to open the lines of communication can be done through monthly or weekly one-on-ones.
- Goals should be set and then left alone
Just as business initiatives have to be adaptable so too should departmental and personal goals. Goals should constantly be re-assessed and more than just at the beginning of the year or even every quarter. It is important to keep goals in line with current priorities within your organization. Try utilizing development and professional goals with each employee. Take this into consideration when beginning the performance review process. What were the goals? How have they changed? Do they accurately reflect current market conditions as they stand today?
If you recognize the faults as stated above, then you are on track for a successful performance review. In order for performance reviews to add value, managers must offer a chance for self-assessment, meet communication expectations and readdress goals on a consistent basis. If these are met, then performance reviews can result in improved efficiency, productivity and employee morale.