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If You Haven’t Already, STOP Doing Annual Performance Reviews

Guest post by: Gregory Kopchuk

Article Overview: Why the most effective annual review is not having one at all

If You Haven’t Already, STOP Doing Annual Performance Reviews

A friend of my conveyed this scenario to me:

A boss of his sat him down at a very nice restaurant and said they were about to do his annual review.

He nodded.

Then she said: "Of course, if there was anything wrong, I would have told you months ago."

He nodded again.

Then she said: "So....your work has been good."

After that, they just gossiped about other people in the company. The "review" was over.

And that's all a review should be. The best solution is to skip them altogether.

Q: Who has performance reviews? A: Lazy, lazy companies.

When you have a really good employee, you don't ‘review.' You tell him every chance you get how much his work is appreciated. You pay him as much as you can. When there is a problem, you tell him in private, immediately. You do not wait months for his next ‘review.'

Same thing applies to the bad employee: you do not wait around for his next ‘annual review.' You take him aside, in private, and explain what, exactly, is driving you nuts. The two of you put together a plan for remedies. If the employee meets those objectives, so much the better. If not, it may be time for a different solution.

Q: Who else has annual performance reviews? A: Companies who are trying to give you a tiny raise.

Anyone who has worked for a large corporation knows how this feels. You know, long before you finish filling out your ‘self-appraisal,' what your raise will be: 2 or 3 %. Nevertheless, you have to spend a half day, or more, filling out the sheets or checking off boxes on a quiz. Your boss will likely spend even more time than that, having to fill out a mini-tome for each employee he has. And the result of all this thinking, tabulating, cogitating, analysis and interviewing is a raise of about 2.5%.

Some things in business are hard. This is not. If you run a business that evaluates people using ‘annual performance reviews,' stop doing them, as of right now. You'll save time and money. Employee morale will soar.

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Article Tags: Annual Reviews, benefits, compensation, management, management tips



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