Can We Just Eliminate Annual Performance Appraisals?


“Over my career,” a manager confided, “I’ve done hundreds of annual performance reviews.  I can’t remember the last time that an employee made significant and lasting behavior changes as a result of one.”

Another manager reported, “We had so many complaints about our appraisals, we appointed a task team to develop a new form.  After many hours of deliberation, followed by training on the new process, we rolled out the program.  Everyone was excited at first; but after a year, complaints whelped up again.”

“I spent hours preparing data to support my ratings,” said another.  “I don’t think it helped at all.  Employees who disagreed still argued and whined about low ratings.”

No one pays attention to annual appraisals until they do.  When managers become unhappy with an employee, the appraisal emerges as documentation to justify termination.  Employees know this.  That is why many get defiantly defensive about low ratings.

For these reasons, Deloitte, Accenture, Gap, Lear, General Electric, and many others have dropped their annual appraisal process.

I think brief, monthly employee reviews are less stressful and much more meaningful than annual appraisal rituals.  Consider questions like, “What were your two most important achievements last month?  What are you planning to focus on next month?”

Confirm what you agree with.  Discuss your disagreements.  This approach is quicker, less stressful and more meaningful.

 

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