The practice of no longer having annual performance reviews started in 2012 with only a few large companies. By 2015, it was 55 and by 2016, it was 150. Today there are approximately 400 companies currently on the path to kill the annual performance review.
What is the best way for you to handle this quandary if you are still conducting annual performance reviews?
First, you must have a framework that encourages more frequent conversations. I’ve recommended my clients use the Three Question Session. But, if you choose to reinvent the wheel, you’ll need to provide guidance as to what specific conversations should take place between the manager and an employee.
If you use the Three Question Session you’ll already ensure conversations stay focused on the future. You don’t want managers to have the same old discussions even though you are not ranking employees.
Lastly, you’ll want to make sure this practice sticks. You must train your managers and employees on how to have good conversations. You need to provide tools or conversation guides so they focus on the relevant and don’t go off on tangents. You will also want to ensure you use consistent messaging from senior leadership throughout the organization regarding the importance and timing of the conversations.
Employees want consistent feedback and to be involved in goal setting that impacts their job, team and organization. They want opportunities to learn and grow, own their work and understand how their job fits into the success of the organization.
Only 14% of employees strongly agree that the annual performance review they receive inspires them to improve so it’s time to kill the performance review but keep giving consistent feedback!
More insights in these posts:
Providing Feedback to Your Employees