Question: Does your performance review system need to be replaced?
Traditionally, companies have relied on annual performance reviews to hold employees accountable and track performance over time. Many organizations now realize that performance reviews may cause more problems than they solve. A Deloitte survey found that the widespread ranking-and ratings-based performance management system is actually damaging employee engagement, alienating high performers, and costing managers valuable time.Annual Performance Reviews Are Obsolete
CEOs are now questioning whether performance ratings and annual reviews really improve employee performance. Your review system needs to be replaced if it has the following characteristics:
1. The review a single annual event just between the manager and the employee.
2. It is paper-based and time-intensive.
3. It has an adverse effect on productivity and employee engagement.
If yes, then consider adopting a new system like what Microsoft, Adobe, Cisco, and Deloitte are doing.
A Better Way
Leading organizations are scrapping the annual evaluation cycle and replacing it with ongoing feedback and coaching designed to promote continuous employee development. A best-practices approach evaluates employees according to a set of standards or clearly defined goals that are established with the employee. The emphasis is on timely feedback, clear goals and vision, and reducing friction between employees, and managers and team leaders.
Forward thinking managers and team leaders are now shifting the focus to providing real-time feedback and coaching to their teams. In an article in Business Standard, Rohan Gupta, COO of Attero says, “To achieve and sustain fast-paced growth, organizations need to measure good and bad performance instantly, instead of waiting for the year to end. Quick feedback is important for helping an individual improve her performance on a regular basis.”
What Managers and Team Leaders Need to Know
To improve employee performance and work, team leaders and managers have to know how to coach and guide their members through constant evaluation and feedback.
The Talent Management Institute offers three courses that specifically designed to increase team leadership, communication and coaching skills.
Click here to learn about Resources for Turning Your Good People Into Top Talent: Including Team Leader Development Program, like Essential Skills of Leadership, Essential Skills of Communication, and Coaching Job Skills.
