
If you’ve been using the same performance review process for a long time without making changes, it could probably do with some adjustments — or even a complete overhaul. According to the Society for Human Resource Management (SHRM), 77% of HR execs believe performance reviews aren’t an accurate representation of employee performance, indicating that many organisations aren’t using this crucial performance management tool to its full potential. If you recognise any of the following signs within your company’s performance review process, it’s time to rethink your current strategy.
1. Everyone in your organisation dreads performance reviews
When performance reviews come around, do you notice that employees become anxious and stressed out? If there’s a general feeling of tension and discomfort in the office around performance review season, there’s something wrong with your current process. If your entire workforce is on edge, this may indicate that they aren’t sure where they stand, perhaps because you are not providing feedback regularly.
2. Feedback isn’t relevant to current performance
If managers aren’t providing employee feedback often enough, your teams miss the opportunity to gain valuable insight into their current performance. Useful feedback relates to what’s going on in the business now, as this can be acted upon and ensures a real impact. Managers should be encouraged to offer continuous feedback rather than wait until the next formal review to raise concerns.
3. Managers are reluctant to provide honest feedback
Honest feedback is crucial if you want performance reviews to be effective. In a survey by Zenger and Folkman on general attitudes toward feedback, 92% of respondents agreed with the assertion, “Negative (redirecting) feedback, if delivered appropriately, is effective at improving performance.” If managers are afraid of confrontation and are willing to provide only positive feedback, employees are missing opportunities for development, which may cause performance to stagnate.
4. Your people aren’t developing
If your organisation holds performance reviews, but your employees aren’t developing between meetings, this is a sign of ineffective communication. For employees to grow and performance to improve, thoughtful feedback is essential — perhaps your managers would benefit from additional training on discussion points to improve performance conversations?
5. Employees are surprised by the feedback given
Employees shouldn’t be taken aback by feedback, so if this is happening regularly within your performance review process, it’s a clear sign that something needs to change. A process of continuous performance management would ensure regular communication between managers and employees, helping to foster open and honest communication so that employees are never blindsided.
6. Your employee turnover rate is high
Did you know that 24% of workers would consider leaving their jobs if managers provide inadequate performance feedback? An effective performance review process can reduce employee attrition by ensuring employees know where they stand and are given the tools needed to grow professionally. If you’re tired of losing your best people, using an effective performance management system is an excellent place to start.
7. Your best employees lose out
Within many organisations, it’s common for the best-performing employees to receive the least feedback. Although it’s great that your staff are doing so well, there’s always a way for them to be even better — they just need a little guidance. Encouraging employees to simply keep doing what they’re doing robs them of the opportunity to grow and develop professionally.
8. Reviews happen once a year
Research from Gallup shows that employees whose managers hold regular meetings with them are almost three times more likely to be engaged. Engaged employees feel happy, fulfilled and committed to their work, boosting performance and productivity. How can you expect to improve employee engagement within your business if performance reviews happen annually?
There’s no sense in waiting for a yearly review period to let employees know how they’re doing at work. Communicate with them regularly as part of an ongoing performance management strategy, providing feedback on what they’re doing well or could improve on.
If your existing performance review process needs work, the Clear Review team would love to help. Our continuous performance management software makes it easy to move away from annual appraisals, with a single platform that enables you to boost engagement, improve well-being and effectively manage performance.
To see it in action for free, fill out our book a demo form, and a member of our expert team will be in touch.