Performance reviews made easy
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Expedia did it. So did Deloitte, Gap, Microsoft and Adobe Systems. These companies all decided to put an end to the annual ritual of employee reviews — opting instead to give feedback through other processes, like real-time conversations and spontaneous reviews.
It seems to be a small yet growing trend, according to Cliff Stevenson, senior research analyst at the Institute for Corporate Productivity, who was quoted in an article by The Fiscal Times. He estimated that 10 percent of companies have abandoned annual reviews — up from 4 percent just two years ago.
However, he said, other means of evaluating employees won’t necessarily make a difference in their effectiveness unless employees are allowed to be “part of their own career development and their own performance discussions.”
Apparently this small but growing shift has come as a result of the overwhelming number of employees and managers who don’t think their companies are effective with the performance management. Based on a report by research firm 14cp, only 28 percent of survey respondents considered their organizations effective at performance management, while only 55 percent believed their performance development processes had a positive impact.
Here are several predictions on how employee performance reviews may evolve:
Dispensing of rating systems. The move to a performance management system without ratings may be a good idea based on feedback from companies that have done so, including Adobe and REI. i4cp’s study showed that the organizations that went without ratings have seen more employee engagement or boosts in their bottom line revenue.
Increased use of technology. With the ability to gather data through technology, more companies will be able to gather information about employee performance, according to Stevenson. He believes that this type of data can assist in more effective employee reviews.
Increased focus on strengths, not weaknesses. According to Gallup research, you’ll get more employee engagement by focusing on employees’ strengths instead of their weaknesses. It’s considered significantly more effective approach, given that managers play their roles. Under a strengths-based environment, employees are given clear direction about their roles more quickly. As a result they’re able to produce better work. They also tend to stay with the company longer.
The Gallup study revealed that 67% of employees who strongly agree that their manager focuses on their strengths are engaged, compared to 31% of employees who indicate strongly that their manager focuses on their weaknesses.
Maybe it’s time to update your employee evaluation process. Employee evaluation software is one tool that can help you streamline the process. To learn more, contact Standard for Success for a free trial.