PI Worldwide reveals five best practices for revitalizing the Performance Review Process
WELLESLEY, Mass., June 17, 2014 /CNW/ - Most organizations conduct yearly performance reviews because they believe they are critical to ensuring the ongoing success of a business. However, a study by the Society for Human Resource Management (SHRM) found that 90% of performance appraisals are painful and don't result in better performance. Most annual reviews are reactive exercises in capturing delayed feedback. They neither motivate nor drive improvement. However, when performance reviews are recast as a development tool that lays out a proactive plan to help employees improve, then everyone wins.
The answer to transforming this broken process lies in managers taking a new approach: companies must focus on collaboration, professional development, coaching and empowering people for success. Research from Bersin finds that the performance management process should focus on feedback and development (not on evaluation) and that 70% of all organizations want their performance appraisal process to be primarily "developmental" in nature.
PI Worldwide, a leader in science-driven insights that help optimize the performance and potential of individuals, teams, and organizations, has compiled the following five best practices for managers to keep in mind to revitalize the performance review process, making it much more productive for them and the reviewees:
1. Take the Fear Out
One of the reasons people don't like performance reviews is because they happen too infrequently – making it that much more daunting when they do finally come around. A lot is riding on the review including potential job advancement and a salary increase. By conducting more frequent, ongoing reviews (both formal and informal conversations), the process will be less intimidating, more timely and more productive.
2. Make the Conversation More Objective
Implement "informed coaching" (coaching based on data) by using the Predictive Index® (PI®) to obtain insight into the individual, their preferred work styles and strengths prior to their performance review. This will provide a clearer view of the gap (if any) between the individual and the requirements of their role. Also, managers should leverage this type of data to understand their own strengths, weaknesses and work style which will help with their own objectivity during the conversation.
3. Understand What Motivates the Individual
When holding a performance review, managers should take time to think about the individual being reviewed: How will they take the feedback? What is causing their performance to excel or to falloff? What is their performance potential? How are they motivated (e.g. public recognition, salary, advancement, flexibility on the job)? By employing a scientifically-validated behavioral assessment, managers will better understand the motivating needs and drives of the individual they are reviewing. That, coupled with constructive coaching behaviors (like listening actively, reinforcing positive behavior through the delivery of feedback, asking open-ended questions, collaborating and confirming coaching outcomes) will result in a much more productive review.
4. Look to the Future
A performance review is the perfect opportunity to plan for the future and build out a career plan. Where does the employee see themselves in one year/two years? What type of advancement opportunities interest them? Salary.com reports that "the chance for career advancement" is a major factor in retaining employees and keeping them happy. Their survey results show that 37.3% of dissatisfied employees cite "inadequate opportunities for career advancement" as the reason they want to quit.
5. Regularly Re-Evaluate Job Requirements
Use a job analytic to evaluate the job at least once a year to help determine the evolution of both the job and the employee. The PRO™ is a job analytics tool that provides insight into the behavioral requirements of the position at any level within the organization. Armed with this information, a manager can confirm whether or not the behavioral requirements have changed or stayed the same, setting clear and current expectations to help the individual's continued success.
With a talent shortage reported for many industries globally, it is beneficial for managers to be thoughtful and forward looking during the performance review process. By following these five tips, managers can forge and maintain healthier relationships with their teams and individuals and benefit from an engaged, productive workforce.
For more information about performance review best practices, data-driven workforce solutions and expert tips from PI Worldwide, please contact:
Davies Murphy Group, Inc.
About PI Worldwide
Trusted advisors to a global client base, PI Worldwide and the 400 experienced consultants at our 45 member firms change the way clients find the right people, develop leaders at all levels, and achieve growth goals. Founded in 1955, PI Worldwide pioneered a new approach, based on the Predictive Index® assessment, for optimizing the performance and potential of individuals, teams and organizations. The company offers a unique combination of behavior and skill assessments based on a proven methodology incorporating data, technology, knowledge, and business expertise. More than 8,000 clients drive dramatically better business results by leveraging our data-driven solutions in 142 countries. Learn more at www.piworldwide.com.
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