Performance Reviews: Are They Worth It?
“Performance Reviews” a phrase feared by many due to their stressful content, awkward discussions, and sweat-inducing preparations. The consensus on whether or not performance reviews are positive or negative is unclear, so, we’re going to give you all of the facts, opinions, and details to help you decide if performance reviews will work positively for your workplace.
What are Performance Reviews?
For many people, Performance Reviews are a common part of their work life, occurring quarterly, to accurately discuss how they performed or underperformed for the quarter with their supervisor. These are done in a professional manner and include or identify the employee’s strengths and weaknesses, while also relaying constructive feedback. Some performance reviews also allow time to set goals to succeed in future reviews. These meetings used to be held annually for the entire organization, however, now it’s more popular to hold these performance reviews every quarter. According to BambooHR, “more and more companies are moving toward a frequent feedback performance management system in which managers conduct reviews quarterly, monthly, or even weekly.” With the changing times, the model for performance reviews also changes. Generally, the goal of performance reviews is to allow employees insight into what they’re doing right and wrong and how they can fix their workflow to align more with the company’s needs if off track.
The Pros:
One great Pro for performance reviews is their ability to stop a problem in its tracks before it gets too out of hand or irreversible. According to BambooHR, “managers who use performance reviews effectively can more easily recognize high performing employees, correct issues before they become insurmountable, communicate expectations, encourage growth and development, and foster employee engagement.” Being able to locate a problem or potential problem and stop it before it becomes too far gone is a great benefit to performance reviews IF the reviewer handles the problem respectably and not negatively--for the reviewee’s sake.
Dedicated Time to discuss growth and connect with employees. During performance reviews, employees get a one-on-one meeting with their supervisor or superior to discuss all of their growth so far as well as the plans to continue to grow. It’s also a fantastic way for those in charge to connect with those that work for them. Be aware when scheduling performance reviews, that they’re organized and scheduled in such a way that is conducive for employees to get the most out of their time without feeling as though they’re being rushed through a series of comments or questions.
Great opportunity to set clear expectations and goals- When done correctly, performance reviews can be a great way to set clear goals and expectations for those under review. Proper use of time and organization can be a performance review savior. As the reviewer or as the one under review, consider optimal preparation before entering the meeting as to create an efficient amount of time. This is the best and in some cases, only time to have a conversation of this nature so make the most of it! This is also a great time to allow employees to view their contributions/importance to the company-highlight the good over the bad.
Provides Motivation- One of the greatest pros of performance reviews is the amount of motivation it can provide to the employee under review. An employee can leave a performance review one of two ways: empowered or disheartened. No matter their review, make sure they leave the former rather than the latter for the sake of their continued performance and the sake of your company’s retention rate. Furthermore, a motivated employee will perform with more confidence, drive, and enthusiasm than an employee who’s wind was just sucked from their sails.
The Cons:
Performance Reviews Can be Harmful- Throughout our research, a consistent con against performance reviews is their potential for harming an employee. According to an article by Gallup, “performance reviews in most organizations are so bad they do more harm than good.” So often, if an employee is not hitting the mark, all of their flaws and misses are the bulk of the review, leaving out anything positive or constructive that they did or could be doing. This contributes to low retention rates and a high turnover and should be noted if your company participates in annual or monthly performance reviews. Furthermore, if performance is not up to par or the negatives are the main focus, the employee can feel more like a dissection of his/her performance rather than a positive discussion. AQPC believes that If done annually, expectations set at the beginning or end of year can seem restrictive, so keep in mind what goals are set and if they’re attainable and relevant.
Performance Reviews Can Fuel Greed- On the flip side of the same coin, performance reviews that are glowing with positivity can inflate egos and leave the “best” employees with an enriched sense of greed and harsh competition. Gallup says that “when employees are rewarded for putting themselves ahead of colleagues and customers, it fuels greed and dysfunctional competition.” Those reviewing the employees or conducting these reviews MUST be cautious in any and all comments, especially if they begin to wade into the comparison game or let on that one employee outperformed another. This hurts everyone involved and will ultimately hurt the company.
Anxiety- A common stat we noticed surrounding performance reviews is the amount of anxiety that comes with the meetings. Multiple stats stated that employees would rather call in sick to work than attend their annual performance review. That stat is saddening as these reviews should not be a fear mongering factor for employers to get what they want. If you do offer performance reviews, be sure to ease the minds of your employees and market them as a positive meeting to discuss possibilities for growth!
Unreliable Reviewers- A huge con in the fight against performance reviews is the reviewers could be unreliable. This con is extremely subjective and could be a cop-out for a negative review, however there have been instances where the reviewers have little to no daily contact with the person under review. This leaves the review up to personal bias due to the lack of professional contact and could hinder the person up for review. It’s crucial to make sure the reviewers work daily with the reviewee and that the meeting is fair and unbiased.
The Stats
Only 8% of companies believe their performance management process is highly effective in driving business value, while 58% say it’s not an effective use of time. (Source)
45% of HR leaders do not think annual performance reviews are an accurate appraisal for employee’s work. (Source)
92% of respondents agreed with the assertion, “Negative (redirecting) feedback, if delivered appropriately, is effective at improving performance.” (Source)
76% of all employees want feedback at least monthly (TruQu)
80% Of Gen Y Said They Prefer On-The-Spot Recognition Over Formal Reviews. (Keka)
Now that you have all of the info, where do you stand? Are you going to begin implementing performance reviews into your annual schedule or are you going to rethink those big meetings?