Why Businesses Should Rethink the Annual Performance Review
This week’s Friday Resource was originally published by Forbes and provides insight into why businesses should ditch the annual performance review in favor of a more agile on-going performance conversation.
The article focuses on Adobe’s need to shift their performance review process in 2011 after having significant changes to their business model by introducing cloud-based software and real-time services. These changes did not translate to how Adobe was evaluating performance, supported employee growth and fostered a team environment. Common pains with the yearly review process were that both managers and employees alike dreaded preparing for and delivering the review, and in the months following, Adobe saw an increase in voluntary attrition.
The antiquated yearly review system was actually hurting the company and hindering their employee’s personal growth more than helping. There were three key areas that needed to be changed:
- The annual review process
- Evaluating past performance
- Comparing employees against each other
The new performance review approach was coined the “Check-in” and set clear expectations and goals between managers and employees as well as facilitated frequent feedback based on expectations set. The results were higher employee engagement, lower turnover and approximately 80,000 hours of managers’ time saved by ditching the yearly performance review. Could your annual performance review be hurting your company more than helping? Read the article