Yearly Performance Review: Love it or hate it?

Performance Review - Love It or Hate it

In this episode we take a long, cold look at the effectiveness and relevance of annual performance appraisals. Are they a value add - they certainly take a lot of time and energy, or are they past their sell by date, and there’s a better way?

Highlights:

• What are we talking about? The idea of the performance appraisal began in the early 1900s with Frederick Taylor's efficiency studies. Given the focus on productivity, it evolved, properly taking hold in the 1990s, especially with Jack Welch's force ranking at General Electric.
• And today? The performance appraisal is pretty ubiquitous. It’s widely used across sectors, despite growing criticism.
• What’s the problem? There is a particularly muddled focus on most appraisals—past performance is discussed, often at the expense of future development. Even more confusing, some appraisals are linked to salary, behaviour, and development simultaneously.
• What do employees say? Frequently the appraisal creates anxiety due to its high-stakes nature and the feeling of being judged on an entire year's work in one meeting.

What are the Alternatives? 

• - Frequent Conversations: Prioritise real-time, regular feedback over annual reviews.
• - Get clear on the purpose: Clearly define the appraisal's goals—whether for development, salary adjustments, or something else. Reducing ambiguity pays dividends.
• - Empower Employees: Increase transparency and encourage self-assessment to enhance agency.
• - Team Appraisals: Consider evaluating team performance in addition to individual contributions. This can be particularly effective when you are trying to promote collaboration in the team.

Conclusion:

It’s a split jury on this one. John thinks the annual appraisal is a slam dunk DedX. Anna is less sure and thinks it has a place if it can be reformed. What do you think?

If you have any Dedx suggestions email us at team@samsas.one with the subject line Dedx Idea.

We would love to hear them!

John: https://www.linkedin.com/in/jadm/

Anna: https://www.linkedin.com/in/anna-wesson-54989929/

Music credit: by Yevhen Onoychenko from Pixabay

Disclaimer: The ideas discussed in this podcast are intended for entertainment purposes only and should not be taken as serious business advice. Listeners are encouraged to do their own research and seek professional advice before implementing any of the ideas discussed.