Social Media has changed the business landscape in countless ways. In an era when we’re accustomed to receiving instant “likes” and comments on everything from our favourite political candidates to our sandwich from today’s lunch run, the idea of an annual performance review at work is becoming increasingly antiquated. Waiting an entire year to communicate with the boss about our output at the office? Dislike!
By the Numbers1:
- 95% of managers are dissatisfied with their performance review systems.
- 59% of employees do not feel that performance reviews are worth the time investment.
It’s no wonder that dynamic organizations2 like Adobe, Gap, Netflix, and Microsoft have all traded out their old annual performance review models for new, more frequent feedback reporting. And the results have been overwhelmingly positive:
- Adobe3 saved roughly 80,000 hours of managers’ time and experienced a 30% reduction in voluntary turnover.
- GE increased productivity fivefold in just one year. Not only that, but management was able to glean numerous profit-driven ideas for improvements both inside and outside the company through increased communication with employees.
3 Keys to a Modern Performance Review Approach
In our recent whitepaper, “10 Employee Engagement Trends to Watch in 2017”, we took a look at the importance of frequent communication, and delivering feedback instantly on a multitude of platforms. If your organization has decided that now is the time to implement a new method of performance reporting, consider utilizing these 3 key elements:
1) Instant Gratification
Don’t wait until the end of the year to congratulate your employees on a job well done- do it right away. Make time for frequent, informal discussions between managers and staff, and encourage the sharing of opinions in both directions. Betterworks has found that employees who engage in weekly check-ins with their managers are 24 times more likely to achieve their goals than those who do not! As we’ve discussed in our whitepaper, “Millennials are 76% more likely to report high levels of satisfaction in a creative, inclusive working culture rather than a more authoritarian, rules-based one”. Casual, but meaningful conversation breeds exactly the type of office environment that can retain talented Millennial staff.
2) Share, Share, Share
Don’t keep that win to yourself! Create an infrastructure that allows managers and team members alike to share each other’s successes throughout the company. Not only does this provide appropriate praise for high-achieving employees, it also amplifies the feeling of success and growth across the enterprise, fuelling further momentum towards upcoming goals. 41% of companies4 that use peer-to-peer recognition strategies see positive increases in customer satisfaction- clearly the appreciation is contagious!
3) Pay to Win
While you’re redefining your performance review process, it’s also worth taking a look at your bonus structure. Where annual raises and bonuses used to be tied to yearly reviews, a new, more frequent reporting program requires a similarly structured pay system. There are several ways to do this without impacting your bottom line. For example:
- Fuelzee5 rewards sales staff for the number of “No’s” they receive. Sound counterintuitive? Think of it this way: Every “no” brings you one step closer to a “yes”. For Fuelzee, rewarding volume is a key to success, and each week, the person with the most “No’s” receives a $100 gift card.
- If you want your employees to work as a team, try rewarding them as such with a team bonus structure. You’ll promote cross-functional collaboration by defining shared goals, while also ensuring that no team member goes unrecognized.
- Gamify earnings by providing employees with “instant rewards” for achievement in the form of “points” or “badges”. For “x” amounts of “points”, employees can collect a monetary or gift reward.
ChannelAssist’s creative, client-specific solutions amplify employee engagement and business performance. We’ve helped companies like Rogers, HP, Toshiba, Bayer, and The Source to drive sustainable loyalty and revenue growth through the implementation of new strategic initiatives.
1- SHRM, “Is the Annual Performance Review Dead?”, https://www.shrm.org/ResourcesAndTools/hr-topics/employee-relations/Pages/performance-reviews-are-dead.aspx
2- InSites Consulting, “We Eliminated Annual Performance Reviews. Now What?”, http://www.insites-consulting.com/we-eliminated-annual-performance-reviews-now-what/
3- Lighthouse, “Reinventing the Wheel: How Companies like GE, Adobe, and Deloitte Get Rid of the Performance Review with One-on-Ones”, https://getlighthouse.com/blog/get-rid-of-the-performance-review/
4- ChannelAssist, “The Top 10 Employee Engagement Trends We See for 2017”, https://www.channelassist.com/the-top-10-employee-engagement-trends-we-see-for-2017/
5- Business News Daily, “3 Proven Ways to Motivate Your Sales Team”, http://www.businessnewsdaily.com/7051-how-to-motivate-sales-team.html