Four reasons why annual performance reviews hurt employee morale.
1. Feedback must be constant, not periodic. Remember the last time someone reminded you of something you did several months or even years ago? You likely thought the issued was dealt with and in the past.
2. Monitary rewards should not be annual. If monitary rewards for performance are part of your employee incentive program, then the frequency should be tied soley to performance, not a calendar date.
3. Do you remember when? The chances that you will remember all of the pertinent details since the last review are slim; what you do recall will seem insincere and strictly documented. Chances are those things that you will remember are of poor performance, not of the positive daily contributions.
4. Remember report cards. Those that had high marks spent time bragging to others about their grades, while those with poor marks snuck home to hide their report cards from anxious parents. Employees treat performance reviews (especially those that are written), in the same fashion.
Managing and improving performance requires consistent and ongoing feedback, both positive and correctional. Can you imagine taking note of all of the good and bad feedback from your significant other and then sitting down to discuss once per year?
© Shawn Casemore 2011. All rights reserved.