Are performance reviews outdated?

by L&D19 Sep 2016
Are annual performance reviews useful for motivation and development, or is a more continuous approach to performance management preferable?

L&D Professional is currently running a poll to see what our readers think.

It comes in light of new research from the UK which found mixed results about the value of performance reviews and the frequency with which they should be conducted.

The survey found 78% of respondents said performance management could be improved within their organisation, while 69% think that performance management needs a more modern approach.

However, 77% of those surveyed see the value of performance reviews; 65% find them motivating and engaging; 81% helpful for identifying areas of improvement and getting valuable feedback on their progress; and 60% agree they help them as an individual to see how they are contributing to business performance.

Kallidus, a provider of learning and talent management solutions, surveyed 329 directors, managers and employees across a wide range of company sizes.

They also found that nearly three quarters (74%) of respondents have conversations about performance with their line manager at least quarterly, with 43% of these having monthly discussions.

Only 13% of respondents have a once-a-year appraisal review and a further 13% rarely or never have conversations about performance with their line manager.  

Rob Caul, CEO of Kallidus, said completing performance reviews is a “cumbersome process” for many managers and directors.

He added the research shows that a manager of a team of 12 could easily take a whole week every three months to do performance reviews for the whole team.

That time spent on process and administration could be better spent on having meaningful appraisal and career conversations, he added.

Moreover, Philip Pyle, sales and marketing director at Kallidus, said it’s great to see performance management is valued and organisations are embracing a more continuous approach with regular conversations that wouldn’t have been the case a few years ago.

“While technology has the power to streamline and modernise performance management, culture is king,” said Pyle.

“Ongoing, forward-looking conversations can transform the performance management process from a tick-box exercise where employees feel forced to justify their performance over the past year, into something far more engaging, focused on helping people to reach their full potential and impactful for the business.”