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14 Oct

Annual Performance Reviews? Not!

  • By Jill Christensen

Checking progress toward goals once a year will not help create an engaged workforce and ensure employees are on track to meet or exceed objectives.  To that end, companies need to rethink the traditional annual performance reviews process.  Regular checkpoints need to occur between people managers and employees, so employees are reminded that what they do day-to-day matters and can make any necessary course corrections in real time.

Several global powerhouses have rightfully turned the traditional annual performance review process on its side:

  • Global consulting firm Accenture recently eliminated its annual performance reviews for its 330,000 workers, following in the footsteps of Microsoft, which eliminated rankings in 2013.  Accenture’s new system calls for informal reviews that can be given at the manager’s discretion.
  • At Gap, people managers have monthly conversations with workers.
  • Google and Yahoo have opted for quarterly reviews.

You can’t expect employees to be engaged when they have one conversation a year with their manager about their performance and their role in the company’s success.  In order for employees to see the line of sight between what they do every day and the company’s purpose, people managers must conduct monthly or quarterly conversations with their people about their performance.  In addition, people managers should give employees informal feedback in the moment when he/she is doing something well or poorly.

Employees need to be frequently reminded that by putting their piece of the puzzle in place, they are helping the company achieve its goals, and it could not be done without them.  Show people that their contributions matter.  Then stand by and watch.  Watch people be more productive.  Watch people have more passion.  Watch people be more creative.  And watch your employee engagement needle – as it will be on the rise.

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