Annual Reviews: A Thing of the Past?

If you were lucky enough to catch this Saturday’s Weekend Edition on NPR, you will have been treated to an in depth piece about Annual Performance appraisals. Now, let’s face it, this is probably one of the most un-sexy topics out there in the world of work. People hate giving performance reviews and people hate getting performance reviews.

In a recent Deloitte survey, nearly 60% of manager said they didn’t feel their current annual review process drove employee performance or engagement. Isn’t that part of the whole point of a performance review? NPR’s Yuki Noguchi spoke with Talent Consultant Kim Ruyle who recognizes that putting a sincere conversation about performance in a conversation coupled with the typical time to ask/or be given a raise is not conducive to anyone’s well being. Using data from Deloitte, Marcus Buckingham & Ashley Goodall modeled a new system of performance review here. It is a fascinating read, check it out.

According to a 2014 study by the Society for Human Resource Management, 72% of organizations conducted annual performance reviews. Only 3% of organizations went against the grain and do not. This means that either those organizations don’t review at all, or take a less structured approach to performance evaluation. Imagine working on a project for 6 months and you only hear feedback about its direction at a performance review, counter-productive – no?

In my time at CPG I have seen a few different styles, occasionally we have run across people who prefer a more rigid style on which to base their goals. In general however, the vast majority of us prefer to give and receive feedback in the moment, whether it be about attitudes, behaviors, or critiques on a project. And frankly – we can’t imagine it any other way.

References

http://www.npr.org/2014/10/28/358636126/behold-the-entrenched-and-reviled-annual-review

http://www.shrm.org/research/surveyfindings/articles/pages/2014-Performance-Management.aspx

https://hbr.org/2015/04/reinventing-performance-management

 

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Cognitive Performance Group, LLC is a woman-owned small business with offices in Orlando, Florida, and Cleveland, Ohio. It was founded by Dr. Karol G. Ross, Jennifer K. Phillips, and William A. Ross. The three CPG Principals developed the concept for a company to support cognitive performance improvement in industry and government. (more...)

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