Let’s cut right to the chase: Are annual performance reviews really effective for the primary purpose in which they are intended to serve?
Yes, performance reviews provide measurable results needed to predicate ill-founded performance incentive plans. Yes, performance reviews are used to substantiate staff performance to organizational leaders. Yes, performance reviews offer one time each year to say that we had a one-on-one with each employee. However, performance reviews rarely review performance.
So, if not performance, what do they review?
In a January 2012 Forbes article, founder of Ironfire Capital LLC Eric Jackson detailed his list of the top 10 mistakes bosses make when administering a performance review. I think it would prove valuable for us to benchmark ourselves against his list. They are as follows—along with my helpful translation of each tenet (and I speak inclusively as I hold myself to these standards as well):
- Too vague. It’s obvious that many managers either a) don’t know their employees or b) are too scared to give them feedback. As a manager, we’re in charge of employee development. Therefore, we don’t really have the luxury to lay out a “fuzzy” assessment.
- Everything’s perfect – until it’s not and someone is fired. Can we say, passive aggressive much? Workers need managers to say what they mean and mean what they say for crying out loud. We can’t have employees thinking their performing work just fine, only to have the rug pulled out from under them.
- Recency effect. I understand the frustration that may occur when someone missteps close to a review. I also understand that since we haven’t closely observed their performance all year, it would be really easy for us to rate them based on this one screw up. But, we shouldn’t.
- No preparation. Really? How can anyone ever take us seriously as managers again? Who doesn’t prepare for a performance review? Managers who cannot prepare should go back to being individual contributors.
- They never happen at all or “my people know my door is always open.” Oh, I get it. Practicing a little conflict avoidance, eh? I shared before and I will share again, a manager’s job is to manage people. This includes seeking them out to provide feedback.
- No pats on the back. I believe the rule says nine positives to one negative, or four positives to one negative… something like that. Either way, the bottom line is we can’t just slam our employees. We must give them feedback on where they’ve been successful as well as areas for improvement.
- No recognition for doing the work of three people. We all know the plight of the post-recession employee: everyone is doing more with less. Because this is the case, we must recognize our employees for this accomplishment. A “thank you” goes a long way, and it could mean the difference between employee retention and a huge turnover problem that puts a target on our own backs.
- Not being truthful with employees about their performance. When I’m coaching managers, I sometimes ask myself, “What are they so scared of? What kind of dirt does this employee have on you that would keep you from telling them that they are underperforming?” Whatever the issue, we have to overcome it. Not being truthful in any situation—professional or personal—only ends up biting us in the end.
- No follow-up. When we purchase a car, we purchase it with the understanding that it will require maintenance, right? Maybe, not the perfect analogy, but you get the idea. When we select professionals to join our team, it is with the understanding that we are committed to their growth and development. Therefore, when we review their performance and give them areas to improve, it is our job to follow-up with them on a regular basis and ensure that they are indeed making progress.
- No discussion around the employee’s career ambitions. Hey, here’s a scary truth: No one wants to work for our companies for the rest of their careers anymore. There, I said it. Pink elephant addressed. Now, what are we going to do about it? As managers, we’re going to help our employees achieve as much as they can and ascend as high as they can go. We do this, and they’ll stay a lot longer. Trust me on this one.
This is what you need to know. The performance review can be an extremely powerful tool if treated correctly. As a manager, if we’re conducting one-on-one meetings consistently and keeping the lines of communication open with our employees, the review validates performance, reinforces good behavior and results, and encourages continuous improvement for the future.
All in all, I implore you to not be that manager who is known at the water cooler for her passive aggressive performance reviews. Instead, use the performance review as an opportunity to reinstate this tool to its rightful place: a channel for feedback that one needs and deserves to learn, develop, and grow toward success.
