HRM article

Employee Performance Reviews

April 22 2011 - A half of the participants in an online survey* conducted for
Globoforce think that employee performance reviews do not provide accurate
appraisals of their work.

The Workforce Mood Tracker survey found that U.S. employees were dissatisfied
and disconnected overall about the frequency and effectiveness of performance
reviews. Based upon the survey's findings, it can be concluded that organizations
should be concerned about motivational issues at review time. Main findings were:

 Only 25% of those surveyed had performance reviews more than once
a year
 Just 18% were given feedback on a semi-annual basis
 7% received monthly reviews
 22% said they never had a review
 24% dreaded their annual review more than anything else

Eric Mosley, CEO of Globoforce, a provider of strategic employee recognition

solutions for enterprise-level companies, said:

"Our survey results show what many in the HR community and business world feel
right now: the annual performance review is broken. Providing employees with
feedback and recognition only once a year is a huge missed opportunity and simply
unfair, given the fact it’s based on a biased sample. An ongoing, 365-day
performance management solution that accurately measures employees’ year-
round performance not only drives engagement, it uncovers the true leaders and
influencers across the organization. This type of approach, driven by a strategic
recognition program, provides employees with the feedback, appreciation, and
direction they need to approach their peak performance level."

Mosley considers that the disenchantment with the performance review process
and the consequent negative perceptions among the workforce can affect the
prevailing culture and employee performance. He suggests three keys to unlock the
full potential of employee feedback programs and enhance employee engagement:

1. Connect daily performance to company goals and values. The

performance assessment process tends to be viewed negatively and
 many people believe that the annual ritual is 'a fruitless corporate
exercise lacking substance'. This is often a missed opportunity to
make a significant impact. HR professionals should align all types of
reviews (recognition and feedback) to specific organizational goals or
values, giving employees a better understanding of the value they can
deliver. This approach emphasizes behaviors that are desired and
performance to be repeated.
2. Give feedback regularly and in the moment. There is no point
trying to remember everything an employee has achieved over the
course of a year. Few managers systematically track performance
details for every activity or project. The result is a process that looks
superficial and may encourage employees to disengage. On-the-spot
recognition and review, on a daily basis, provides more effective
feedback so that employees can align their performance to desired
goals and values. It also provides a more accurate picture of
employees’ skills, achievements, and influence to HR departments.
3. Be honest with yourself and your employees. Regular feedback is
essential for employees to achieve maximum performance and
productivity and understand the goals and behaviors desired by an
organization. Annual performance reviews can be supplemented with
new performance management strategies, enhancing the existing
employee feedback cycle with year-round social recognition
programs. This amplifies an organization's knowledge about its
workforce and maximizes employee performance throughout the year.

* The Globoforce Workforce Mood Tracker™ study of 631 respondents was

conducted on January 7-8, 2011 by independent market research firm
MarketTools, Inc., through an online panel of fully employed persons (age 18 or
older) in the USA.