Is the traditional performance review dead?

Consulting

According to a study by the Society for Human Resource Management, about 90 percent of companies conduct annual performance reviews, but most HR professionals give the review process at their own company low grades.

The question is – should your company change the review process, eliminate it entirely, or stick with the current set up? A few large companies like Microsoft and Adobe have changed their review set-ups drastically.

Adobe for instance instituted a check in every few months, instead of annually to make sure goals are being met and employees are feeling appreciated.

“People just really want to have an ongoing dialogue. They want to know that there’s no surprise in terms of how they’re performing, how they can make a difference in the organization,” says Donna Morris, senior vice president of People and Places at Adobe.

Reviews get contentious when raises and rankings are brought into a conversation that is truly supposed to be about employee growth and development. When that conversation happens annually instead of per quarter or more, it adds even more undue pressure on the meeting.

This type of review process came about in the early post-war era as management styles evolved. Really though, is it still working for the modern company? Its up to your team to decide.