You are not alone if you dread the yearly performance appraisal process. Research reported on earlier this year in the Wall Street Journal discovered that the perceived effectiveness of the performance appraisal process was directly related to employee satisfaction, and that negative feedback resulted in lower satisfaction regardless of the employee’s learning goal orientation.
When I asked for people’s opinions on yearly performance reviews in a few LinkedIn groups, the responses generally agreed that performance reviews are necessary but preparation, scope and timing of the performance appraisals can cause headaches.“I find that waiting until the end of the year makes the process unduly stressful and too many otherwise important things get missed in the interests of keeping the meeting a reasonable length.” “Unfortunately, the paperwork can be tedious.”
Another person responded that the company’s culture is a key factor to employees’ satisfaction and work performance.“If an honest, open dialogue exists in your company it will naturally increase the satisfaction, dedication and productivity of all associates.”
I agree with these and all of the comments provided. Annual performance reviews are necessary to evaluate employee performance but the frequency they are conducted, what is covered during the meeting, and how the information is presented are critical to developing high-performing, dedicated employees.
Effective performance appraisals include frequent conversations throughout the year to discuss performance and progress towards goals between employees and their managers. Then when it’s time to sit down at the end of the year, there is a level of trust already established. The manager has a clear picture of the employee’s performance during the year from frequent contact, and the employee has received regular feedback to help improve their performance and guide their direction.
This consistent and regular dialogue can be as quick and easy as meeting for coffee weekly or monthly to discuss progress towards goals, provide appreciation for their performance, or feedback on a skill or behavior to develop. It’s this reliable communication that builds a connection with employees that improves their performance and productivity over time.
Annual performance appraisals don’t have to be a dreadful experience for leaders or their employees, but only taking time once a year to provide feedback, leads to lower satisfaction. No one wants to receive negative feedback all at one time and high-performing talent prefers regular communication that shows you value their contributions.
Start laying the groundwork for improved performance reviews today by connecting with one of your employees. Take them to lunch or stop by their desk to tell them how much you appreciate their hard work. You’ll be lifting some of the dread and anxiety surrounding their yearly performance appraisals.