Everybody hates them, but performance reviews aren’t going away: Survey

by Tim Gould

You’d think, with all the complaining both employers and employees do about performance reviews, that companies would be scrapping the bloody things altogether. You’d be wrong. 

Most North American employers have no intention of eliminating their use of performance ratings, according to a recent survey from HR consulting giant Towers Watson.

Instead, many are making significant changes to fix the overall process, such as replacing annual performance review cycles with more frequent employee and  manager interactions, applying a more future-oriented definition of performance and potential, and implementing new technology.

Not a surprise: The Towers Watson survey found that less than four in 10 (37%) North American companies say their performance management programs are effective. And only a quarter (26%) say their managers and employees are satisfied with the process. Half of the respondents agree that employees and managers just don’t spend enough time on performance management.

Only 8% of respondents have eliminated performance ratings, although 29% are either planning to or are considering eliminating them. Half of respondents (50%) said they have either changed or eliminated the annual performance review cycle in favor of more frequent interactions between employees and managers, or are planning or considering this change.

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