- 66% of employees globally say the annual performance review process interferes with their productivity
- 65% of employees worldwide don’t believe the process is even relevant to their jobs
- Companies that set performance goals quarterly generate 31% greater returns.
“Did you know that your yearly employee review could be ineffective at generating the change you need in your organisation?” says Head of Research and Solutions at the NeuroLeadership Institute South Africa, Rob Jardine.
66% of employees say the performance review process interferes with their productivity, and 65% say it isn’t even relevant to their jobs, according to a Gartner worldwide employee survey.
Today’s data-driven HR departments require more practical methods to measure performance. This is why companies like Deloitte, The Gap, and Adobe, have abolished performance reviews in favour of continuous feedback loops.
The big idea: Feedback feeds into your profit margins
“There is a new way of doing things, and its called continuous performance management,” explains business.com. “It incorporates real-time feedback, the allocation of short-term objectives and frequent developmental conversations for all employees.”
By delivering continuous feedback, you’re showing your team that you’re invested in their personal development. This leads to higher engagement and increased productivity.
What’s in it for you: Surpass your company’s performance goals
Real-time coaching reduces any bias resulting from the traditional review process of trying to recall mistakes or successes from months ago. These check-ins enable managers to identify and resolve performance issues timeously and with more accuracy.
“Companies that set performance goals quarterly generate 31% greater returns from their performance process than those who do it annually, said HR researcher and expert, Josh Bersin. “And those who do it monthly get even better results.”
Make it happen
Identify and combat the 3 most common biases in performance reviews, no matter how often you check in with your team:
- Find common ground with everyone you assess. This will ensure your employees are all on equal footing at the start of the performance review process
- Paint a complete picture of each employee. When assessing someone’s performance, you focus on the most obvious signs of success or failure. Instead, look for achievements that are not immediately apparent
- Regularly record details of the employee’s performance each month. You are most likely to remember an employee’s most recent actions, achievements, and shortcomings. “Further, we tend to favour people who we see more often in the office than those that we don’t,” Jardine. “This bias is becoming far more common in the new flexible-time work economy.”