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LAST year, one of the largest companies in the world, Accenture, stopped using performance reviews across its 330,000 employees.

The scrapping of reviews on such a large scale begs several questions: Are performance reviews worthwhile, or is there something more effective? With all the time it takes to prepare and conduct annual performance reviews, are they actually assisting you to improve your business?

For any business just ‘going through the motions’ of conducting reviews on, say, an annual basis, if there is no follow-up after the engagement, it can be another 12 months before any issues are addressed.

Not following-up after a review can have negative consequences – such as in an example where an employee is waiting for training to carry his or her job more effectively, while continuing down a path of poor performance.

If your business only sits down with staff infrequently, they may well not feel comfortable providing feedback or suggestions. Meeting in this capacity only once a year may mean that the relationship is not well-enough established to enable them to speak freely.

If your business is to eliminate performance reviews, changes will need to be made in the way staff performance is managed. What’s more important to constantly staying in touch with staff (be careful not to drift into micro-management, however), so managers can become aware of anything which may turn into a major issue either for the business, for the individual employee, or both.

Weekly meetings with staff (however short) will give managers the opportunity to better assess staff performance and mood, and provide any necessary assistance to ensure staff can perform their roles effectively.

As a manager, you might be saying, “I don’t have time to meet with staff that often.”

Worth considering is the alternative: the time it takes to sort out problems (and sometimes dissatisfied customers); how difficult it is to replace unhappy staff; and the cost in lost productivity.

Annual reviews may be the way your business currently decide which staff to reward and to help identify under-performers, but why not let employees set goals and evaluate them on a more regular basis?

We all know motivation differs for each individual, but setting goals and providing rewards may be one answer.

And staff rewards do not necessarily need to be monetary. Further reading on that topic can be found in this separate article: Rewarding employees need not break the bank.

Source: Ag Careers.com