A new generation or workers, who value collaboration, personalization and immediacy, are likely driving changes in the way businesses and organizations go about evaluating their employees. Now, some are shifting toward real-time feedback models that help alleviate some of the anxiety associated with year-end reviews.
Employees, Employers Are Ready for Change: Study
The Chicago Tribune enumerated the efforts of Catalina Andrade, the employee happiness director at a Chicago-based weight management company, to transform her company’s evaluation system and move away from the traditional year-end model.
Andrade said her company, Retrofit, is moving toward instantaneous feedback because “our world is instantaneous.” Another manager pointed out the illogic of year-end reviews using a sports analogy, citing the value of providing coaching and feedback during a game, not at the end of the season.
According to a report from Accenture Strategy cited in the Tribune article, three-quarters of employees said their companies should change their performance practices. Leaders concurred, with less than 40% indicating their review practices are helping them achieve their goals.
A third of the companies cited in the study have already started to move away from traditional reviews. However, some question if awarding raises without the typical on-paper ratings is feasible. The groundwork for modernization has already been laid in some instances; four years ago Deloitte conducted an international research project that found the company’s employees were spending nearly 2 million hours each year completing forms, making rankings and holding meetings.
The company concluded it may be better to spend that time “talking about careers and thinking about the future rather than the past,” said one director. Instead, now, they are moving to weekly check-ins with team leadership. Technology and crowdsourcing were cited as some of the vehicles used to aid in the transitions.
Psychologists See Evidence Reviews May Hurt, Not Help
An article in Business echoed the sentiments of Andrade, Deloitte and other organizations moving away from traditional reviews. Psychologists cited in the article indicate negative feedback, like that given during traditional annual or semi-annual reviews, may actually hurt performance. For high-achieving employees, negative feedback was not well received.
Additionally, for some employees, a negative review turned into a self-fulfilling prophecy, according to the article, with employees performing badly after a bad performance evaluation. The evaluations can also lead to “destructive” internal competition, one psychologist said.
A study by the Society for Human Resource Management cited in the article found 90% of performance appraisals “are painful and don’t work; and they produce an extremely low percentage of top performers.”
Some Tips for Navigating Younger Workers
At the heart of the shifting trends are the millennials in the workforce.
Entrepreneur offers some tips to help communicate with them, including shaking up the way feedback is administered. The publication suggests:
- Making them feel like they are a part of something: Millennials often ask, “What’s in it for me?” Giving them a clear answer about the meaning of their work can go a long way. Many want to feel like they are making a positive impact on their community while at work.
- Making feedback a two-way street: Open the discussion and increase the frequency they receive feedback.
- Open with the good news: Also, millennials want to be told when they are doing a good job. “Being proactive with positive feedback is important, and enabling employees to provide this feedback for each other is too,” the story reads.
- Give clear direction: While creative interpretations can sometimes lead to innovation, clear direction about things that must be done a certain way is pivotal. And, reinforce when an employee has done it correctly.