When we look at the current sentiment around performance reviews, it doesn’t paint a pretty picture. Research shows that performance management is the most despised people process at organizations, with a net promoter score of -60. This means they’re more disliked than cable companies, internet service providers, and health insurance plans. This negative perception isn’t only held by employees, but by people at every level of an organization, from executives to HR teams.
Because of this, we see endless headlines calling for the “death” of performance reviews and highlighting companies that are ditching the performance review process. But is this really the right solution? If you look more closely at the research, it shows that people have less of a problem with performance reviews. Instead, it’s that they don’t like their organization’s approach to performance management.
This indicates that it’s the culture around performance reviews that needs to change; not the tool itself. Because without the tool, you’re eliminating one of the only formal methods of giving feedback to and receiving feedback from your employees. Not to mention that many organizations tie performance directly to their recognition and compensation efforts. So if you know your organization is going to continue having performance reviews, you may want to start thinking about how you can change the status quo around performance reviews.
What exactly isn’t working when it comes to performance reviews? While the answer may vary by organization, there are a few factors that usually play a major role in contributing to the lack of success around performance management systems. Ninety-five percent of managers aren't happy with their performance review process. It's time for a change. Download Culture Amp's guide to learn how to rebrand and rebuild your process so individual performance aligns with company goals.