Rob Wilson, President of Employco USA, recently had an article featured in the November issue of inBusiness magazine:
Performance Review: Useless Procedure?
The shift now is away from an annual review
Evidence from a recent survey by Gallup and others has found that two-thirds of organizations feel their performance reviews are not effective. Described as “subjective and highly ambiguous,” performance reviews can be a very impactful tool when used appropriately, but, as this research shows, most companies say they are falling short of the mark.
As a response, some employers are eliminating the annual performance review. However, we don’t see that as a good solution for the vast majority of companies. Without an annual review — even if it’s just a compilation of more frequent ones — it’s very difficult for employers to work on merit pay increases.
So, there is a purpose to be served. Instead of ditching performance reviews entirely, therefore, companies need to rethink the way they approach this measuring stick and bring performance reviews into the modern era.
For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.