According to a study from CEB, a management research firm, 95% of managers are dissatisfied with their companies’ performance review methods, and 90% of HR professionals believe that the annual performance review process does not produce accurate information—leaving many in search for better methods. This realization has led some companies to get rid of annual performance reviews in favor of more frequent check-ins with their employees, including high-profile companies like GE, Accenture, Adobe, Gap and Medtronic.
Why Companies Are Giving up Annual Performance Reviews
Annual performance reviews have been criticized for focusing too much on the past rather than the future, since employees are being evaluated and given feedback on projects they worked on months ago—many of which are no longer fresh in their minds. As a result, many employees are left in the dark wondering about their performance for months and are unsure about where they can improve and how.
What Companies Are Looking to Instead
Determine What’s Best For You
Before implementing such a program, it is important to determine your organization’s needs. Evaluate your current performance review process to identify areas for improvement and even consider surveying employees to ask about their feedback preferences. While an overhaul of your performance review method can seem like a daunting task, there are significant financial and operational benefits that can be achieved by providing more frequent feedback.