Are performance reviews of value to your business?

A new study shows that performance reviews are often making employees feel less motivated instead of helping them improve.

Researchers surveyed 2,000 UK office workers and found that:

35% felt less positive about their job after their most recent performance review.
Only 16% felt more positive about their future at work.
A separate poll found that 25% of employees felt unmotivated after their latest review.

Experts believe that traditional yearly appraisals are no longer effective because workplaces change quickly and employees need regular feedback, not comments about work done many months ago.

Many workers also want to understand:

How their skills are valued.
What career opportunities are available.
Whether their employer is investing in their development.

It was suggested the problem is often with how reviews are conducted rather than the reviews themselves. Research evidenced that 82% of managers receive no formal management or leadership training before becoming managers. Many managers are expected to give feedback and support employee development without being taught how to do it well. Some managers now use artificial intelligence (AI) to help write reviews, but experts warn that AI should support managers, not replace human judgement.

Performance reviews can be improved by having regular conversations about performance instead of relying on annual reviews; setting SMART goals (Specific, Measurable, Achievable, Relevant and Time-bound); using fair and consistent scoring systems if relevant and provide training to managers to give clear, useful feedback. Ensure the separation of discussions about career development from discussions about pay and bonuses plus ensure reviews are fair and free from conflicts of interest.

Performance reviews should be an ongoing process, not a once-a-year event. Employees benefit most from regular, meaningful feedback, and managers need proper training to provide it effectively.

Should you wish to discuss how performance reviews can be implemented into your business, contact us on 0800 9995 121.

Are performance reviews of value to your business?

121 HR Solutions Ltd