STAFF & Ditch the Annual Performance Reviews. Do this Instead (and Unite Your Team). How Successful Companies Do It.

Commentary by Dr. Whitesel: I suggest most of my clients initiate at least quarterly one-on-one meetings with their staff instead of an annual performance review. Read the article below to see why annual performance reviews have shown to be ineffective about 80% of the time. Discover instead how one-on-one meetings at least each quarter (where you discuss goal setting, growth opportunities and how you can assist one another) grows better employees.

by Marla Tabaka, Inc. Magazine, 11/30/19.

This SHRM study found that as many as 72% of companies still conduct yearly reviews even though 87% of both managers and employees find them ineffective. 

A Gallup study revealed that employees whose managers regularly communicate with them are nearly three times more engaged than those with managers who don’t communicate regularly. The benefits related to frequent feedback, goal setting, and growth opportunities far outweigh the value of an annual review. 

 Here are a few tips on how to make your transition smoothe.

Take notes.

Doing away with annual reviews does not preclude the need for documentation. Keep ongoing notes on your discussions and the action steps that result from them. In the case of an underperforming employee, this is especially important.

Discuss reward and compensation.

Tell employees when and if they can expect a raise. The absence of an annual review could leave employees wondering about their financial future with the company.

Don’t slack. 

It’s great when you stop someone in the hallway to acknowledge an achievement, but a scheduled meeting still needs to take place. I have one client who meets with each of her five employees weekly, some of my clients hold meetings with employees monthly, and some quarterly. Determine your schedule by considering goals for your culture, the stage of growth the company is in, and how employees are performing. Avoid putting off a meeting with an employee for any reason; this sends the message that they don’t come first.

Listen.

These meetings aren’t about you; they are about the employee. Your time together is the perfect opportunity to ask them questions about their ideas and vision. Ask them for feedback about your leadership and communication style and let them voice their general concerns should there be any. 

Read more at … https://www.inc.com/marla-tabaka/ditch-annual-performance-reviews-this-is-how-progressive-companies-do-it.html