{"id":2458,"date":"2017-04-23T20:05:18","date_gmt":"2017-04-24T03:05:18","guid":{"rendered":"http:\/\/leadershipchoice.com\/?p=2458"},"modified":"2017-04-23T20:05:18","modified_gmt":"2017-04-24T03:05:18","slug":"eliminating-performance-reviews","status":"publish","type":"post","link":"https:\/\/dev.taylorsolutionsinc.com\/lc\/eliminating-performance-reviews\/","title":{"rendered":"Read This Before Eliminating Performance Reviews"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” admin_label=”Section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_fullwidth_slider show_arrows=”off” show_pagination=”off” admin_label=”Fullwidth Slider” _builder_version=”4.16″ parallax=”on” custom_padding=”|||” custom_padding_tablet=”|||” custom_padding_phone=”|||” box_shadow_style=”preset6″ box_shadow_blur=”10px” box_shadow_color=”rgba(0,0,0,0.1)” remove_inner_shadow=”off” hide_content_on_mobile=”off” hide_cta_on_mobile=”off” show_inner_shadow=”on” button_letter_spacing_hover=”0″ global_colors_info=”{}” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”on” button_letter_spacing__hover=”0″ button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][et_pb_slide heading=”Read This Before Eliminating Performance Reviews” use_bg_overlay=”on” bg_overlay_color=”rgba(0,0,0,0.23)” use_text_overlay=”off” _builder_version=”4.16″ header_font=”||||” body_font=”||||” background_color=”#ffffff” background_image=”https:\/\/dev.taylorsolutionsinc.com\/lc\/wp-content\/uploads\/2017\/04\/Eliminating-Performance-Reviews.jpg” button_icon_placement=”right” button_on_hover=”on” global_colors_info=”{}” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off” sticky_transition=”on”]Patrick\u00a0Bosworth and & Dave Boizelle chime in on the performance review debate
\n[\/et_pb_slide][\/et_pb_fullwidth_slider][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ custom_padding=”||-40px|” transparent_background=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” global_colors_info=”{}”][et_pb_row admin_label=”Row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Social Media Share” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”] [feather_share] [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”3_4,1_4″ admin_label=”Row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”3_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Blurb” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n

While studies show most HR professionals and executives are dissatisfied with their current performance management system, the solution may not be as simple as eliminating performance reviews.<\/span><\/h4>\n

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Are you considering eliminating annual performance reviews? You\u2019re not alone. According to the Corporate Executive Board (CEB), in 2015 nearly 12% of Fortune 1000 companies were ditching annual reviews\u2014up from 1% in 2011 and 2% in 2012.<\/p>\n

Headlines such as \u201cWhy the Annual Performance Review is Going Extinct\u201d and \u201cMore US Companies Moving Away from Traditional Performance Reviews\u201d are at the top of online search pages, and companies such as Deloitte are writing whitepapers on how and why they\u2019re implementing a culture sans performance reviews.<\/p>\n

The Debate for Eliminating Performance Reviews<\/h1>\n

There\u2019s no doubt that quarterly or annual performance reviews are getting a bad rap. SHRM and CEB studies show that 58% of executives believe their performance review system does not increase engagement<\/a> or performance, 95% of managers are dissatisfied with their performance management systems, and 77-90% of HR professionals are dissatisfied with their organizations\u2019 performance evaluations.<\/p>\n

The research seems to back these opinions up. According to multiple studies, performance reviews may hurt more than they help.<\/p>\n

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Researchers found that performance reviews\u2026<\/strong><\/h4>\n

Organizations\u00a0such as CEB and SHRM sought to resolve the performance review debate once and for all. During those studies, they found that performance reviews:<\/p>\n

– \u00a0Are wildly inaccurate.<\/strong> 2\/3 of employees who receive the highest scores in traditional performance management reviews are not actually the highest performers.<\/p>\n

– \u00a0Yield little to no improvement.<\/strong> Managers told CEB that conventional reviews only generate a 3-5% improvement<\/a> in employee performance.<\/p>\n

– \u00a0Are bad for morale.<\/strong> According to a neuroscience-based framework<\/a> codified by David Rock, employee\u2019s brains respond to performance rankings with an overwhelming fight or flight response that impairs good judgment that can impair thoughtful, reflective conversation.<\/p>\n

– \u00a0Reveal more about the rater than the ratee. <\/strong>In a paper published in the Journal of Applied Psychology<\/em>, a study of nearly 4500 managers rated on certain performance dimensions by two bosses, two peers, and two subordinates revealed that 62% of variance in ratings could be accounted for by the individual raters\u2019 peculiarities of perception. Actual performance accounted for only 21% of variance.<\/p>\n

Studies like these as well as the anecdotal observation that performance reviews just didn’t seem to be getting the job done naturally lead HR managers and executives to consider that, perhaps, performance reviews should be eliminated altogether. But research shows it\u2019s not quite that simple.<\/p>\n

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Eliminating Performance Reviews Isn\u2019t as Cut-And-Dry as it Seems<\/h2>\n

CEB studied<\/a>\u00a0organizations that eliminated performance reviews and found that in most organizations that eliminated performance reviews:<\/p>\n

– \u00a0Manager conversation quality declined by 14%<\/strong><\/p>\n

– \u00a0Time spent on informal conversations decreased by 10 hours<\/strong><\/p>\n

– \u00a0Employee engagement dropped 6%<\/strong><\/p>\n

However, some\u00a0organizations, such as Adobe and GE, have seen incredible results from eliminating performance reviews from their company culture.
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