04/08/2024

Performance Reviews Don’t Inspire Growth

Align them with company values to enhance motivation

The traditional performance review process has become increasingly scrutinized in the evolving landscape of the modern workplace. While once regarded as a best practice for employee evaluation and development, a growing body of evidence suggests that this time-honored practice may be more of a hindrance than a help. It’s time to rethink our approach to performance feedback since the current system has reached its limits.

But don't just take my word for it. Chances are, if you ask managers and employees their thoughts on the value of performance reviews, you'll most likely hear they see little value in them. In fact, according to Psychology Today, 66 percent of employees are strongly dissatisfied with their performance reviews, and 95 percent of managers are dissatisfied, highlighting a significant disconnect between the goals of performance reviews and their outcomes.

As a chief people officer who has spent years overseeing annual performance reviews at companies such as Amazon and Microsoft and private companies, I have not seen any significant benefits from these reviews. Frankly, this has led me to question these evaluations’ effectiveness and the resources invested in them. While I have always believed in the value and importance of performance feedback, my experience has taught me that we must reevaluate our approach to performance reviews and explore new methods to help our employees thrive.

Please select this link to read the complete article from SmartBrief.