Performance Appraisals: Do They Work?
Performance appraisals are the second most dreadful thing that employers do not like to engage in. Coming in as the number one most disliked process is firing someone. Performance appraisals serve as a guide for managers to weed out the lacking employees and promote and encourage the successful employees. These annual talent reviews are a thing of the past and businesses are looking to do away with performance appraisals for good.
Why Performance Appraisals?
Performance appraisals take place between a manager and an employee. The manager will evaluate the performance of an employee and then give them feedback on areas they can improve on and potential success the employee can achieve if they take steps to improve their performance. The system is outdated and has proven not to be useful for employees or managers. Many of the performance appraisals are bias and heavily opinionated. An annual performance review is the most common type of performance appraisal.
Ineffective
Performance appraisals have shown to be effective in motivating and encouraging employees. A yearly performance appraisal is not enough for employees to feel appreciated in their place of work. Employees need weekly or even daily reviews of the work that they are doing to ensure they are doing it correctly and not to be blindsided by negative reviews. Issues regarding performance should be addressed immediately instead of once every year or couple of months. People are influenced by positive, constructive criticism when it is often delivered. Going further, instead of focusing on the review section of a performance appraisal, managers should gear their efforts more towards development planning aspect of the appraisal.
What’s Next?
Without performance appraisals how can companies review and evaluate their employees? Businesses who are uncertain or skeptical of alternatives to performance appraisals have stayed with the traditional annual review. There are some compelling alternatives to the annual performance appraisal. Give the floor to the employees where they can openly give constructive feedback to their coworkers. Let employees establish their own goals and encourage them to work on them on a daily basis.
Instead of getting rid of employees who do not meet the performance standards, look for ways that the company can help these employees become better at their job responsibilities. Set reviews quarterly rather than annually. Invest in your manager’s ability to give feedback and create an honest dialogue between them and your employees. Leadership development courses can help your managers in all aspects of their job duties.