Quantisoft conducts comprehensive employee surveys for many organizations across many industries. Our surveys include questions about the effectiveness of performance reviews and about ongoing performance feedback. More often than not employees comment that their performance reviews are not effective, that they include inaccurate information about the employee’s performance and that the performance reviews are not linked to salary increases. Employees often say managers play favoritism in deciding salary increases rather than basing the increases on actual performance. Some organizations do not hold their managers accountable to do the performance reviews on time and some not at all.
In their survey comments many employees say that it is more important to provide honest ongoing feedback to employees throughout the year than it is to perform an annual performance review. The problem is that many organizations want and need a rational approach for determining salary increases and they feel that annual performance reviews are the best approach for evaluating all employees using a standard performance measurement process.
In reality, the performance management process is designed and executed poorly in many organizations and it does not provide the desired results.
Some performance review processes mix the evaluation of employee skills and competencies with the evaluation of actual performance. Unfortunately, many organizations do not use their performance reviews to identify training and development needs and do not provide needed training/development based on the performance reviews. We also find that many organizations do not provide training and useful guidelines for managers to prepare effective performance evaluations and to conduct effective performance review meetings with employees.
The bottom line – performance reviews are a significant source of frustration for many employees and for managers preparing and delivering the reviews.
The good news is that some organizations do a good job with performance reviews. We also find that when our employee surveys identify the need to improve the performance review process including specific areas for improvement, many of our survey customers do make important changes to the performance review process.