By Daniel Bobinski
Performance reviews are some of the most underused tools in the workplace, and when they are used, they’re one of the most misused tools in the workplace. I’ve said that for years, and the data keeps backing me up.
Last year, an human resources (HR) company named ThriveSparrow did a bit of research and found that 61 percent of managers and 72 percent of workers said they didn’t trust their organization’s performance management process. Even worse, a large survey across many industries found that 90 percent of HR leaders do not believe that performance reviews accurately reflect their employees’ contributions.
This ought to be a major concern for employers everywhere.
Think about what happens when employees walk out of unclear or demoralizing reviews. They don’t suddenly become motivated, they become disengaged. And, since the majority of workers believe their annual reviews are inaccurate, when reviews don’t reflect reality, a drop in productivity often follows.
You could also think of it this way: it’s a short trip from a bad review to a résumé update.
The good news? Done right, performance reviews are one of the most powerful tools a manager has. Here’s how to use them in a good way.
- Make reviews a conversation, not a verdict. Lana Peters is the chief revenue and experience officer at Klaar, a performance management software company. She says, “If someone doesn’t know how their actions are being perceived, there is no indication of how they can be the best version of themselves at work.”
Writing at HRMorning.com, Michele McGovern says a review that’s a one-way download of manager opinions isn’t a performance conversation, it’s a performance ambush. Her recommendations? Ask questions and listen. And let the employee do at least half the talking. - Lead with strengths. Gallup’s research is unambiguous on this. They found that if a manager focuses primarily on strengths, the likelihood of an employee becoming disengaged drops to 1 percent. However, if the interviewer focuses on an employee’s weaknesses, that number jumps to 22 percent.
- Make feedback frequent, not annual. Ken Blanchard, one of the most respected voices in leadership development, once said, “Feedback is the breakfast of champions.” I couldn’t agree more. I’ve long been a strong advocate for managers and leaders to meet with direct reports every two months for a 15- to 30-minute conversation about priories and performance. Why? Because companies that adopt such performance feedback systems see 31 percent lower turnover rates than companies which stay with annual reviews.
- Connect the dots to the future. Remember that people go where they’re focused. Thus, reviews that look only backward miss the point. Every review should include a forward-looking component. Where does the employee want to go? How can the manager help the person get there? In exit interviews, we’ve learned that 25 percent of employees quit because their ideas and goals were not acknowledged.
On the other hand, employees receiving meaningful feedback are 80% more likely to be fully engaged.
Bottom line, performance reviews by themselves aren’t the problem. But how managers use them – or abuse them – makes all the difference.
– Daniel Bobinski, who has a doctorate in theology, is a best-selling author and a popular speaker at conferences and retreats. For more than 30 years he’s been working with teams and individuals (1:1 coaching) to help them achieve excellence. He was also teaching Emotional Intelligence since before it was a thing. Reach him by email at DanielBobinski@protonmail.com or 208-649-6400.
