In today’s lean, fast-changing world, traditional business practices are being shaken up. One business practice that many companies are revisiting is the annual review process. A growing number of workers are demanding more frequent and meaningful feedback about their performance, and in an effort to retain top talent, businesses are looking at how they can improve the review process to provide more regular performance updates.
Based on recent data, it’s clear that changes were long overdue:
- 42% of candidates disagree or strongly disagree that their company’s review process is useful and productive.
- 29% of employees agree or strongly agree that their performance reviews are fair.
- As a result, 54% of employers are now increasing their focus on performance reviews.
CONSIDER THESE THREE WAYS YOU CAN MODERNIZE REVIEWS AT YOUR PRACTICE
- Make Performance an Ongoing Conversation: Instead of a one-way scenario, performance reviews should be discussions that occur fairly regularly and in one-on-one settings. To encourage this, create an open culture of feedback. Employees must feel comfortable expressing their concerns; they shouldn’t feel they are at risk of losing their jobs for speaking up.
- Embrace Career Pathing: Instead of being reactive, career pathing should entail proactive discussions that lay out a plan, empowering employees to take ownership of their advancement
- Ensure Reviews Are Fair: Reviews should take into consideration any changes in responsibilities, workflows and resources, which can impact workers’ productivity. In other words, reviews can’t be cookie-cutter; they must adapt to the situation at hand.
Performance reviews that are frequent, authentic and constructive can lead to greater efficiency, productivity and team camaraderie that can drive stronger employee engagement and retention of high performers within the organization.