The Shift in Performance Management

HR Tech

HR / HR Tech 87 Views 0

Floppy disks, the appendix, erasable pens, and structured annual performance reviews: the ultimate list of useless and archaic tools in 2018. We’re focusing on how structured annual performance reviews earned its spot on this list and how to improve your performance management system this year.

Where did structured annual performance reviews come from?

Employers complain about them, employees feel victimized and resentful after them; traditional performance reviews can do more harm than good. In fact, a meta-analysis of 607 studies on performance appraisals found that 30% of these reviews actually resulted in lower employee performance. To understand why these reviews are no longer useful, we must look at why they were first put in place. In the 1980s, a new trend emerged to objectively rank individual employees so that companies could reward top performers, keep those in the average range, and cut those at the bottom. Makes sense, right?

Why change?

While this system may work well for an initial company clean up, it doesn’t make sense to cut repeatedly. Many companies have started to recognize the benefits of developing employee skill sets rather than hiring better versions of those employees. With a new emphasis on professional development, the old one-size-fits-all performance management reviews

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