The Annual Performance Review… seen by many as the time every year used to either praise or punish staff based on past performance.
Performance reviews can be a great staff management instrument if used correctly… unfortunately, some employers do more harm than good when carrying out or relying on performance reviews.
In a recent survey, Deloitte Consulting identified that 58 per cent of business respondents felt the Performance Review system did little to drive high performance or engagement amongst staff.
In fact, it was found those organisations who had replaced their annual review system with regular feedback and development had seen improvements in employee engagement and performance.
There are a few reasons why the Performance Review process is not working.
It’s being used as a punishment process
If you’re unhappy with the performance of an employee, don’t wait until the performance review to address it. The employee will only attribute meaning to the performance review, not the behaviour in question.
Dwelling on the past, not the future
The review discusses the past years behaviours, which are sometimes not the behaviours you would like to see going forward. Your goal should be to fix the offending behaviour immediately it is apparent… so it becomes the past and is not taken into the future.
Promotes delays in feedback
Feedback should be happening constantly. Whenever your employee does a great job, tell them so. When it’s not so great, nip the behaviour in the bud immediately. Don’t wait for the Performance Review to let your employee know how they are really going.
Negative sometimes outweighs the positive
You have an employee doing a fantastic job, and then there is a hiccup…right before their Performance Review. You are more likely to focus on the recent negative event than all the wonderful work they have put in up until that time.
Employees can also leave their review feeling very deflated as some employers feel it is there duty to “point – out” any slight issues with performance whilst neglecting to say ‘well done’ for doing a great job overall.
The fix is easy…
As mentioned, Performance Reviews are all about the past and your focus should always be towards your future. Performance appraisal needs to shift from the static into a more dynamic “feedback” culture. Make sure your business provides the resources your managers need to put these continuous feedback systems into place.
By doing this, there are two significant benefits:
1. Hiccups can be fixed straight away… by doing so, you limit your resentment as you watch an employee who may be unintentionally, but consistently, impacting your business in a negative way;
2. You can provide instant praise for a job well done. If you are keeping a tally of an employee’s achievements and waiting until their next performance review, it’s probably too late. By then, your star employee, feeling under-valued and under-appreciated, may already have left for greener pastures.
So, the moral of the story is….engage with your staff daily. Provide encouragement and two-way feedback processes that will benefit both your employees and your business.
NEED MORE INFORMATION?
If your business is interested in beginning the journey into supporting the financial wellbeing of your workforce, or would like some further information on the topic, please contact Akyra on 07 3204 8830 or book a free 30-minute consultation, for an obligation-free conversation.
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The material distributed is general information only. The information supplied is not intended to be legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice in relation to your specific situation.