Performance reviews have been a staple of the business world for as long as most employees remember. Whether annually or semi-annually, these meetings have been met with great trepidation from workers and dread from supervisors.
“Ninety-five percent of managers are dissatisfied with the performance review process.”
In fact, a recent survey from the Corporate Executive Board of over 13,000 employees found 65 percent do not believe performance reviews are relevant to their jobs. Furthermore, 90 percent of HR professionals do not believe reviews provide them with accurate information, and 95 percent of managers are dissatisfied with the performance review process as a whole.
With numbers like these, it should come as no surprise that companies of all sizes are ditching performance management for performance development™, leaving that annual review by the wayside.
But what’s the difference between “development” and “management”? What are the benefits of a performance development model? What are the performance review process best practices?
Performance development vs. performance management
Classic performance reviews traditionally occurred once or twice per year and were managers’ chance to impart wise words that an employee would enact immediately, even if that advice was three months too late. As Ross Gibson wrote in an article for Enterprise, “When I first became a manager I was taught: ‘Just catch them doing something wrong and tell them how to fix it.'”
However, the change of just one word, trading “management” for “development,” transforms how such meetings are viewed and even how often they occur. “Development” connotes an investment in the employee and their betterment, be it through training, more frequent feedback or opportunities for advancement. The paradigm shifts and becomes growth-oriented.
Why companies are making the transition – and how
By addressing problems as they occur rather than six months down the road, supervisors can help issues from snowballing into full-blown crises. As a result, employees can advance more quickly in their careers, fixing bad habits and augmenting standout qualities.
A few ways businesses are transitioning away from traditional performance review models includes holding regular conversations with workers, checking morale regularly, making separate formal performance reviews and compensation conversations, and giving employees time to reflect on their own performances, explained Inc. magazine.
Performance development is a tool for problem-solving and improvement. It helps empower employees by giving them regular and relevant feedback, improving morale and engagement across the company.