We all know that annual performance reviews are old fashioned and help in no way to provide critical feedback. The workplace has changed. The workforce has changed. Annual performance reviews remain the same. Is continuous feedback the solution?
HR leaders on performance review:
“45% of HR leaders think annual performance reviews are NOT an accurate appraisal of employee’s work.” – SHRM/Globoforce Survey, 2012
Employee comments on performance review:
36% say they rarely or never receive performance feedback (67% wished they did)
28% say they never discussed future goals and tasks with their bosses (70% wished they did)
74% feel in the dark about how managers and peers think they’re performing.
>50% reacted to an annual performance review by looking for a new job.
In fact, the lack of continuous feedback and recognition is one of the main causes of lack of talent retention:
64% of employees quit their jobs because they aren’t recognized for their work. – U.S. Department of Labor, Bureau of Labor Statistics
82% of leaders said not providing appropriate feedback was the biggest problem to keep their teams together.
Annual Review Continuous Feedback
Discouraging Culture of recognition
Boring Feedback from managers and peers
Costly – Deloitte reported that 58% of HR executives considered reviews an ineffective use of supervisors’ time. In a study by the advisory service CEB, the average manager reported spending about 210 hours — close to five weeks — doing appraisals each year.
Set better goals
Companies that set quarterly performance goals generate 31% greater returns than those that review goals annually. Those that do it monthly get even better results. Feedback from employees is essential for setting goals that have organizational buy-in and aren’t just top-down.
The Continuous Feedback Big Wave
“Accenture will disband the once-a-year evaluation in 2016. It will implement a more fluid system, in which employees receive timely feedback from their managers on an ongoing basis” – In Washington Post, July 2015
Other big companies joining the wave: Adobe | Gap | General Electric | Lilly | Goldman Sachs
6% of Fortune 500 companies have gotten rid of rankings and once-a-year evaluations, according to management research firm CEB.
Join in with Tap My Back
Tap My Back is an employee feedback app that provides employee engagement with real-time recognition and continuous, 360-degree feedback. Like so, we allow organizations to grow and learn how to give, ask and respond to feedback.
Public recognition: give and receive badges in a public way so that the whole team can see who’s giving a positive contribution.
Peer evaluation: allow team members to evaluate their peers’ performance with a simple drag-and-drop interface and in a private way.
«People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.» – Zig Ziglar