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Leaders generally have the responsibility of reviewing employees based on their performance. It is a process that can be stressful to both the employer and employee and if not done right, completely ineffective.

According to the Society for Human Resource Management, 95% of employees are known to be dissatisfied with their company’s appraisal process and 90% of the employees don’t believe the process provides accurate information. Adobe recently performed a study that found there is no correlation between how a worker performs on the job and the outcome of their performance review. Due to how reviews are being conducted, they can actually cause more harm than good.
Employees want timely responses, open communication, and support of co-workers and higher-ups on an on-going basis. Research psychologists at Kansas State University, Eastern Kentucky University, and Texas A&M currently reviewed the effect on the performance of negative feedback during annual employee reviews. Negative feedback was shown to deflate and demotivate employees and positive feedback was often misunderstood by the employee.

So the question stands, why we are we continuing to use the same processes if doesn’t produce a positive outcome? The general answer boils down to what companies view as “the norm.” Thankfully, many companies are changing the performance review game.

GE recently declared that it was putting an end to its “rank and yank” system, which allocates employees a performance score relative to their co-workers and results in the lowest grade getting fired and other companies seem to be following suit.

Accenture’s 330,000 workers are going through what CEO Pierre Nanterme calls a “Massive Revolution” in which timely and customized employee feedback is taking the place of evaluations and rankings done annually.

To sum it up, employee reviews and employee evaluations can make a great impact on both employers and employees. Whether that impact is for the better or the worse of the company is all in the process. Consistent and clear communication about job duties, expectations, and company guidelines should take priority over the mundane performance review document.

Do you feel your company may need a change in your process? Are you looking to improve employee productivity and engagement? Willis HR is here to solve your people problems. Contact us at 803-714-3715 or [email protected]

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