As the end of the year draws near, once again, it is time for the annual performance review. Although it has been found that performance reviews are universally despised and do much damage to the boss-subordinate relationship, companies continue to perform them. In 10 Reasons to Get Rid of Performance Reviews, Samuel Culbert, lists some pretty good reasons to scrap the performance review. Among them, performance reviews prevent employee improvement, destroy teamwork, and keep employees from offering smart ideas.
So why do companies conduct performance reviews? Traditionally, it has been a way to know who the top performers are in an organization, determines raises, who to promote, and who to let go. Fortunately, some companies have learned of a better way.
For example, in 3 Ways Companies Are Changing The Dreaded Performance Review, we learned how some companies have ended performance reviews in favor of giving more consistent feedback. In the article, they cite how The Gap has instituted monthly ‘coaching sessions’ that increase communication between manager and employees in an internal program The Gap calls “GPS” (Grow, Perform, Succeed).
If you need more reasons to get rid of the performance review, take a few minutes to learn how they affect employees in How Your Brain Responds to Performance Rankings, a video from the Strategy+Business website.