Performance reviews have a seductively logical appeal. There's no need to belabor the point by enumerating their obvious positives. And besides, aren't they essential as an "objective" basis for raises?
Despite their merits and ubiquity, there's a pervasive sense that this staple of company life is hopelessly flawed. Is his post, Do You Have a GOOD and SIMPLE Performance Evaluation Form?, bestselling business author Bob Sutton laments: "As many of you know, I have expressed considerable skepticism about whether performance evaluations are even worth using".
For a way forward, consider the sentiments from the following two posts:
1) Transform Your Employees into Passionate Advocates by Rob Markey "We have been studying the links between employee engagement and customer loyalty for a few years now, and we've found that the only route to employee happiness that also benefits shareholders is through a sense of fulfillment resulting from an important job done well."
2) "In 100 Words: Where Do You Start When Your Employee Fails? by Robert Tanner "If you treat people the way they are, they get worse. Treat people the way they might be and they get better."
How can these ideas be sewn together?
Replace the annual performance review with a Contribution Statement. This statement is solely focused on how the employee contributed to those that the company serves. It's a deserved written acknowledgement of how the employee impacted those who depend upon your organization. It's a chance to reinforce the company's mission. It's a chance to say "thank you".
Unless there are serious on-going issues, suggestions about how an employee might improve should be communicated promptly, not as part of a periodic written statement. In cases where an improvement discussion feels appropriate, the Contribution Statement makes it easier for the manager by naturally framing it in a positive manner, e.g. "Here's how you can be even more valuable during the coming year."
At a time when leaders and HR managers are befuddled by the lack of employee engagement, might the replacement of formal reviews with Contribution Statements make a difference? How would this change impact morale? In the evolving world of work, does a Contribution Statement make more sense?
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