I get this question a lot - do we really need to do performance reviews? Do we really need to go through this very lengthy process of giving feedback? Does anyone really care about performance reviews?
The answer a resounding "it depends."
Performance reviews serve the purpose of providing a formal process in which to deliver feedback. This is done for many reasons, a few of which follow:
1. To force leaders to deliver feedback to employees.
2. To provide a process so employees are aware of their performance expectations and limitations.
3. To provide a process to determine merit increases (pay for performance).
4. To document poor performance (terminations, lay-offs, litigation).
5. To force clear communication at least once a year (or even twice).
That probably isn't an all-inclusive list but you get the idea. Now, back to my response - "it depends."
Performance reviews serve the purpose of providing a formal process in which to deliver feedback. This is done for many reasons, a few of which follow:
1. To force leaders to deliver feedback to employees.
2. To provide a process so employees are aware of their performance expectations and limitations.
3. To provide a process to determine merit increases (pay for performance).
4. To document poor performance (terminations, lay-offs, litigation).
5. To force clear communication at least once a year (or even twice).
That probably isn't an all-inclusive list but you get the idea. Now, back to my response - "it depends."
If your leaders are very good at routinely giving feedback (both positive and negative), consistently sit down and have one-on-one conversations with their employees, clearly articulate their expectations and goals, and address and document poor performance in a timely and consistent manner, that would cover all the items listed above except the pay. There are all sorts of different ways to provide monetary rewards to employees and much would depend on the size of your organization and the budget available.
The reality is most leaders are not necessarily good communicators. Implementing a performance review process doesn't guarantee they will become good communicators but it does increase the odds. Most people have been the recipient of the poorly delivered performance review and we all know that is no more effective than not having a review at all. A performance review process simply increases the odds. It will only be as effective as the reviewer. It is your job as a leader to put the time, energy, and thought into the review that ensures it is effective.
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