The needs of a modern workforce have evolved. Has your performance review process done the same?

Many companies are holding onto traditional performance reviews because they think it adds value to their organization, even though in most cases research shows otherwise. Studies show that employees want development, motivation and recognition that will help them grow and benefit their companies. Incorporating these actions into the performance management process could equally benefit both the organization and their employees.

Whether you are reevaluating your current process, or thinking about implementing a new performance review process, consider these four (4) tips:

1)     Define your objective.

First, determine your objective or the ultimate outcome you are trying to achieve. For example:

•        Are you seeking a method to differentiate performance and reward individual employee efforts through merit pay? Or;

•        Are you looking for a consistent method to provide employees with performance feedback?

The answer to these questions would result in two very different performance review systems. The first would likely include a rating system that would differentiate employee’s performance outcomes, while the latter may simply be a structured format in which to provide feedback and doesn’t include a performance rating.

2)     Determine frequency.

The complexity of the process should help inform the frequency. Going through a rating process is time consuming and only realistic once or twice per year. However, we know that a modern workforce wants performance feedback much more frequently than that. Consider mid-cycle performance checkpoints that ensure employees are tracking towards their goals.

3)     Keep it simple.

Don’t overcomplicate the process so much that it’s cumbersome for managers (and thus a deterrent) and confusing for employees. Stay true to your objectives and desired outcomes.

4)     Make it meaningful.

BambooHR reports that 4% of respondents feel that performance reviews motivate and engage employees. Instead, employees reported they prefer to be motivated through:

•     Open, informal conversations

•     Getting raises

•     One-on-ones more geared toward career path

•     Managers listening to their ideas and using them

•     Getting more employee recognition

Incorporating these outcomes into your performance review process is a win-win!


Solvere HR Consulting provides practical HR solutions that optimize your organizational capability and profitability through your most valuable asset — your employees. Learn more about us at www.solverehr.com.