The quarterly or annual employee review has long been a staple in many organizations. Each manager is asked to complete a short appraisal form reviewing direct reports’ job performance in a variety of areas. The results are then used to inform workforce decisions, like compensation planning, promotions, performance improvement plans, and even termination.
However, a performance management strategy made up solely of occasional reviews is now considered to be outdated and ineffective. According to the Corporate Executive Board (CEB), 95 percent of managers are dissatisfied with their organization’s current performance management approach and 90 percent of HR leaders believe their system does not provide accurate results.
And it’s not just managers and HR professionals who believe periodic reviews need to be rethought. Gallup’s “Re-Engineering Performance Management” Report revealed that only 2 in 10 employees said their evaluation results motivate them to do outstanding work.
Performance reviews are not being done away with—they’re only evolving to better align with the expectations of today’s employees, managers, and HR professionals. In this guide, we’ll explore how you can enhance evaluations for everyone involved with a modern approach to performance management.