Updated: Jan 13
A Fix to Performance Reviews: Starts With Asking the Right Questions
It's that time of year for many, yes! Performance reviews. Many leaders cringe at the thought of adding more to their plate. So much so that research has shown over 90% of managers identify that performance reviews are not valuable, ratings cause debates or minimally awkward moments over performance. This creates an overall negative or lackluster feelings towards creating/conducting performance reviews which at the receiving end as an employee is not encouraging. In another study, 54% of people indicated that performance reviews make no impact on actual performance (McKinsey & Company).
What are the reasons holding us to our archaic and arguably 'broken' approach to performance?
In my experience, I've heard classics like:
Well we've always done it like this
It's not the worst system (but not many are happy with it)
We do not have time or money to invest in fixing it
Performance reviews and discussions take too much time to do and our turnover is low, so what's the point!
Other studies as seen published by Gallop point to organizations may not exactly know how to fix their performance management systems issues and that is enough of a barrier to halt any attempts for positive change.
What makes performance matter?
Having employees feel validated and holding performance conversations regularly can increase productivity by up to 20%, studies have