Why is the annual performance review so unpopular?
In most workplaces, just saying the words ‘performance review’ is likely to end in eye rolls and negative comments.
Unfortunately, the annual review has become feared and disliked at the same time, mainly due to the emphasis that is placed on the outcome. If you are lucky enough to have a productive, fulfilling discussion that increases your engagement, that is amazing; but this appears to be uncommon.
Because the employee has ‘all of their eggs in the annual performance review basket’ there is often much anticipation, emphasis and importance placed on this event and employees usually enter the discussion with trepidation as they fear what ‘surprises’ the manager may have about their performance during the allocated period.
For almost all organisations the annual review has significant implications. It can be directly linked to bonus structures, decisions on remuneration increases and opportunities to participate in projects or be considered for promotions. When this review goes well, it has a strong and positive impact, but when it goes poorly the implications are great.
Traditional performance reviews can feel like a ‘tick the box’ exercise where the leader and the employee simply go through the motions.
The nature of the review is often that an employee finally hears how the manager really felt about work they completed (e.g a project) at the beginning of the year, when they are more interested in looking forward. It can also be somewhat of a roller-coaster discussion with ups and downs that ultimately does not leave everyone enjoying the ride.
The annual performance review process is essentially about looking in the revision mirror and assessing what went well and what did not. It is about ‘getting on the same page’ about performance and behaviours and planning for the next performance period.
The challenge both leaders and employees face is the ability to align employee perception and performance reality.
In ‘How Performance Management is Killing Performance – and What to Do About it’ (Berrett-Koehler, 2016), author Tamra Chandler believes that the performance review is so universally hated due to eight fatal flaws:
A theory without evidence is just a (bad) theory. There is no evidence that traditional performance management leads to improved performance.
Nobody opens up with the person who pokes them in the eye. Traditional performance management impedes the reception of feedback and limits honest dialogue.
Nobody remembers the good work. Performance reviews generally emphasise the negative, rather than focusing on strengths.
No man (or woman) is an island. The focus is on the individual, even though system or organisational challenges often have a significant influence on individual performance.
We are not machines. Fairness and standardisation in ratings and the judgment of performance simply cannot be achieved.
Review output is unreliable for making talent decisions.
Let me introduce you to your competition — now play nice together! Comparing people against one another erodes efforts to create a collaborative culture.
We are not Pavlov’s dog. Pay for performance does not deliver improved performance.
Chandler has a unique perspective, but there is no doubt that the annual review is unpopular.
The annual performance review could definitely do with a savvy public relations campaign to lift its profile and encourage employees to get on board with the process, but perhaps more importantly, it just may be time that organisations got serious about making performance more ‘fit for purpose’ by aligning to the culture and needs of the employees within it.
Let’s focus on building performance cultures where feedback flows as regular as the coffee, where leaders are trained and empowered to deliver meaningful and timely feedback and where employees learn the benefits of robust, but fair performance discussions.
More information about performance reviews can be found in our suite of Managing Performance Articles and Managing Performance Templates.
Georgina is Senior HR Content Editor – Publications at Ai Group. She is an accomplished Human Resource professional with over 25 years of generalist and leadership experience in a broad range of industries including financial services, tourism, travel, government and agriculture. She has successfully advised and partnered with senior leaders to implement people and performance initiatives that align to business strategy. Georgina is committed to utilising her experience to create resources that educate and engage and is passionate about supporting members to optimise an inclusive workforce culture that drives performance.
