It used to be pretty much a given: once a year, your supervisor would sit you down and give you a performance review. You would get to hear all about how your supervisor and others at your company viewed your performance, what you did well, and where you need to improve.
In 2019, performance reviews often look nothing like they did before. In many cases, managers have looked at the process and decided it isn't effective for their needs. Here are some of the changes happening with performance reviews and how they could improve employee performance.
They Might Not Be Annual
A year is a nice round interval and makes some amount of sense, but many companies have figured out that waiting a year to discuss concerns or give kudos doesn't keep up with the pace of business anymore. Implementing a process of ongoing review can increase effectiveness and productivity, and is ultimately more helpful for employees than a yearly process.
Asking for Feedback
It can be stressful to be told how you're performing at work, even if it's ultimately positive. Some of that is feeing a lack of control over the feedback. It comes when it comes, whether you ask for it or not. Many of today's companies are training employees to ask for feedback directly, which gives them more control over the process and reduces the stress associated with the review process.
Crowdsourcing can provide a large amount of data and improve the accuracy of responses to questions. Using crowdsourcing to review employees is a new trend that many companies are trying in order to get a more accurate picture of each employee's performance. While there is the potential for negative responses based on jealousy or an attempt to take someone down, these are typically obvious as outliers and can be easily ignored.
Adding in Coaching
Traditional performance reviews focus on evaluation, but more companies are adding a coaching component to their review process. They see the benefits of coaching in improved performance and more employee engagement. Coaching also helps to focus reviews on goal-setting and future performance rather than dwelling too much on past mistakes.
Separating Compensation From Review
Historically, reviews and compensation have gone hand in hand. Better performance often equals better pay, and rewarding good performance with bonuses or raises seems only right. The connection between compensation and review can be a complex one, however, and can lead to feelings of unfairness and more competition between employees. These are reduced when review and compensation are considered separately.
While companies need to be careful to treat all employees fairly, they also need to recognize individual differences in how people work and perform in the workplace. Tailoring tasks, training, and working conditions to the ways employees work best is another way to raise performance and get the most out of employees while respecting their needs and abilities.
GDH offers help in all aspects of recruiting and hiring, including performance reviews. Contact us for more information on all that we can do to help your company meet its recruiting needs.