Among the goals of annual performance reviews is to consider the past and motivate employees for future years. Unfortunately, these once-a-year reviews frequently have the contrary result. While they might be framed in an effort to encourage team members to place their finest foot forward, these reviews often end up making employees feel unappreciated, unimportant and deflated.
For managers, performance reviews can look like an imposition, a stressful and unfulfilling process. Whichever side of the table someone is put, annual reviews can cause stress, tension and discontent.
Just what exactly are leaders to accomplish? For larger companies, performance reviews could be an unavoidable reality. But progressively more organizations are starting to recognize that annual reviews often neglect to positively influence their employees’ behavior, and they’re going for a new approach.
5 Ways HR Technology Can Improve Performance Reviews
Numerous companies have rejected the original style of the annual review and only providing ongoing performance feedback. The Australian software company Atlassian attempt to approach reviews in a brand new way and managers held themselves accountable by publishing the results of their performance-review experiments.
Atlassian moved from the annual review to a style of providing ongoing feedback and coaching. Its methods were rooted in the idea of engagement, and managers gave this program unique touches to align it with company values and culture. They hit roadblocks on the way but achieved their goal of energizing Atlassian’s workforce through one-on-one coaching rather than demoralizing employees with traditional performance reviews.
The business’s model includes structured feedback sessions and ongoing, informal feedback rigtht after an action. Atlassian also overhauled its bonus system, paying higher salaries and offering companywide bonuses rather than individual rewards. The business stopped tying compensation to reviews, focusing instead on paying employees what they’re worth. Most strikingly managers threw out the old numbers-based ranking system and only having a dialogue with employees about specific projects and efficiency.
Drive a Feedback Loop: Employees Will Benefit, So Will Your Company
If you are searching for a way to provide your performance review a makeover, consider adopting the next techniques to drive greater results:
1. Replace the annual performance review with regular, one-on-one meetings where managers and employees set goals and monitor success. These meetings can empower employees to create adjustments with their performance on the way.
2. Turn your performance bonuses ugly. Pay top-of-market salaries, offer organizational bonuses and commodity. Don’t tie compensation to annual performance reviews. Pay people what they are worth: forget about, no less. For instance, if an employee can be an account director, she or he should be payed for what the business thinks a merchant account director will probably be worth. Pay people for what their actual job title will probably be worth, according to industry standards.
3. Get rid of the traditional rating system. Don’t grade employees on lots scale (ranking employees on a scale of numbers). Instead, provide regular, honest feedback and offer specific types of exceptional and poor performance. Ask associates to recognize what went right, what went wrong and how they are able to study from each case.
4. Coach, don’t review. Traditional reviews leave employees feeling as though their managers are sitting in judgment of their performance. Going for a coaching approach (encouraging strong performance and supporting associates after weak performance) can strengthen your relationships together with your employees and result in greater results.
Instead of requesting that employees grade themselves, inquire further things such as "How often did you stretch yourself this month?” Open-ended questions can prompt visitors to think introspectively about their performance.
5. Integrate peer feedback and reviews, that may serve as a robust development tool, enabling employees to observe how their work affects others.
Your organization’s method of performance reviews shouldn’t be a carbon copy of any other company’s. Have a page from the playbook of Atlassian, say, however your policies should reflect your company’s unique culture and values.
If you are looking for new methods to approach appraisals, focus on monthly meetings to check on in with each team member. Continuous feedback and coaching will help you take small steps toward improving performance while relieving a few of the stress of the dreaded annual review.
Stop Delaying: 3 Surefire Methods to Do Employee Reviews Properly