For most companies, the reason they keep doing performance reviews in spite of it’s problems are because it still provides a lot of value.
The good side of Performance Reviews...
- Performance reviews can give organizations important information about employee performance.
Provide a structured method for identifying top and bottom performers so employees can make key decisions around talent management.
Give employees an opportunity to receive feedback and know where they stand.
Companies often need legal protection and documentation around their decisions.
...And the bad.
- People need feedback much more than once a year.
- Lack of frequency means more pressure, which causes anxiety.
- Trying to remember a year’s worth of work is stressful and unlikely to be accurate.
- Companies move too fast for annual goal setting.
- Between planning, meetings, ratings, and administration, performance reviews can take an enormous amount of time.