What
took them so long? Companies like GE, Adobe, Accenture, Deloitte and Netflix
have eliminated their Annual Performance Review. Many HR professionals believe this is only
the beginning. Managers who have worked
for hours and hours of individual meeting and completion of appraisal forms
know just how much a waste of time the majority of these appraisals came to be.
According
to research conducted by CBE Global:
- 95% of managers are dissatisfied with their annual performance reviews/management systems
- 59% of employees feel performance reviews are not worth the time invested
- 56% of employees do not receive feedback on what to improve
- 66% of annual reviews misidentify high performers regardless of stacked rankings
- 88% of HR managers say the annual appraisal process doesn’t yield accurate information
A recent survey by SHRM
found that 72% of companies conduct formal appraisals once a year but only 2%
of the employees gave their employer an “A” grade for their performance
management.
Hay
solutions have stated several reasons why formal (annual?) appraisals are
important:
- They make your people feel valued
- They allow you to set new qoals
- They can resolve grievances
- They help to strengthen relationships within the team
- They allow for refocusing on your team
- They help provide oversight for current projects
- They can help assess training needs.
While
these are certainly valid reasons, they don’t necessarily need to be done
either annually or formally. They are
all excellent practices that can be easily included in the format and structure
of your recognition program.
For years, the recognition industry has
recommended that companies provide timely, honest performance feedback on ongoing
basis and then recognizing employee performance when appropriate. This type of consistent appraisal can have huge
impact on how satisfied, motivated and productive their employees are.
Is
it time for companies to consider a broader approach to recognition that
includes the principles and budgets previously used in annual appraisals? How much more effective would your
recognition programs become?
For more
information on Ultimate Choice Inc.’s products or services or other white
papers please contact us at Ultimatechoiceinfo@cox.net
