Death by Performance ReviewJan 30, 2021
|What do the following things all have in common?
They are all bureaucratic, inefficient, stressful processes that create little value, and most likely, lead to shorter life expectancy. Yet, we continue to go through these dysfunctional processes because we have no choice. Or do we?
Why do we feel we have to complete annual performance reviews? The review giver endures reams of paperwork, user-unfriendly systems, and multiple meetings that parallel Gitmo torture sessions. For the review receiver, it's like watching your numbers come up in a Powerball drawing, hoping to hit the 2.19% salary increase jackpot.
Let's say two people (supervisor + employee) spend about 3 hours preparing for, discussing, and responding to each performance review. If you have 500 people working for your company, that's 3,000 hours of time. I'm no statistician, but I believe the median income in the US is something like $24 per hour. That comes to $72,000 that you just invested in your performance reviews. Was it worth it?
Imagine if you told everyone in your company to skip the performance review process this year. Instead, channel the 3000 hours to making sales calls, improving the efficiency of processes, innovating new solutions, or heck, even cleaning out the supply closet. I bet you'd see a greater return on investment, people would be excited because they'll see progress, and your workforce would be a whole lot happier.
Here's a stat to ponder. A Quantum Workplace study just revealed that 78% of disengaged workplaces use performance reviews, whereas only 50% of workplaces with high levels of engagement use performance reviews. So, if you're still riding the engagement bandwagon, it would make complete sense to just stop the review process entirely.
How do you make the change? Don't get me wrong. There are valuable components to a performance management system. It's just the over-whelming focus is typically the annual review form/process and the rest is ignored. So, pull the plug on the review and beef up the following:
There's no magic to this process. It just takes bold thinkers interested in increasing their life expectancy to take the first step. Hopefully, that's you!
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