Does your employee rock or not? Why annual performance review just don’t work.

It’s that time of the year again: Annual performance evaluations. You’ve got a team of 10 employees you need to evaluate. So, you start thinking back… Bob has been lagging this winter but he did close that huge account last summer… Barbara is a star at the moment but didn’t accomplish much in the first half of the year… Jill has been sick a lot lately…

How can any manager possibly remember all these details? Can a manager really effectively and objectively evaluate an employee once a year?

What if the employee is a typically star player but made a big mistake right before evaluations? What if a low performer closes one good deal right before the evaluation? How can a manager comfortably address that employee’s poor performance the rest of the year without seeming unappreciative of the great deal?

Organizations need to shift performance evaluations from a once-a-year review to one that encourages ongoing communications and feedback. The frequency in which organizations address employee performance has undoubtedly a profound impact on an organization’s efficacy. Ensuring that all employees understand what's expected of them and how their goals align with their organization’s strategic goals is equally important. If performance management relies too much on infrequent goal-setting and inconsistent feedback, it does not drive better performance.

Traditional performance appraisals are one of the most frequently criticized talent management practices. And with good reason. Criticism ranges from the workforces’ perception of it being “a complete waste of time” and having a destructive effect that leaves employees disengaged and demotivated. People only become engaged when they are growing and learning when they believe that their own goals are attainable and when they see how their goals impact their organization.

In order to develop top talent and be successful, organizations need to give managers the tools and systems they need to efficiently evaluate and support their teams. Technology plays an important role in performance management. Effective performance management systems have enabled organizations to shift from paper-based evaluation systems to electronic formats that simplify the tracking and exchange of information. A good performance management solution demonstrates how employees are currently performing and identifies which ones contribute the most, or the least. It provides employees with transparency into their personal performance in the workplace and insight into their future career development.

Learn more about effective performance management and the solutions available to help you achieve it by downloading our whitepaper: “The future of effective performance management: Maximize potential, exceed goals, get results.”