Performance Management No Longer Is a Numbers Game

Gallup research indicates that only 14 percent of employees strongly agree that performance reviews inspire them to do better. Not only are they ineffective, they come at a cost. In Gallup's "More Harm Than Good: The Truth About Performance Reviews," Robert Sutton and Ben Wigert reveal that performance reviews cost organizations between $2.4 million and $35 million a year in lost hours for a company of 10,000 employees as they participate in this fruitless endeavor. Why, then, do employers continue the morale-sucking annual rite?