Save the Workplace: Stop Performance Reviews

Recently, I did a post wondering if it’s time to stop performance reviews at work. New research reported by the New York Times suggests that there’s no reason to wonder. They must be stopped — for the sake of worker efficiency, satisfaction and health. According to this research, it’s not just that performance reviews are ineffective and create the basis for employment lawsuits, they’re killing people.

The performance review is a leading source of workplace stress. It does its part to create a toxic environment. It results in heart attacks, depression and workplace violence. It causes employees and supervisors to work at cross-purposes instead of the same goal. It is necessarily so subjective as to be worthless. Even those who aren’t quite willing to abandon the performance review concede it is a valuable employment tool only if properly done. But as one expert says: “In the typical case, it’s done so badly it’s better not to do it at all.”

So, employers should just stop evaluating employees? No, but in a different manner. The stressful build-up to a six month or annual performance reveiw ”should be replaced by daily ongoing contact with managers who know the work and who can become coaches.” Thus, the evaluation is constant. The interaction between supervisor and employee occurs every day. The evaluation becomes part of a regular workday.

If supervisors don’t want to do this or say they don’t have time to do this or turn out to be bad coaches, fire them. That will be discussed more in my next post.

1. 

   Cindy says:

   May 21, 2010 at 9:54 am

   Great news! What about the stress onthe evaluator too? To put together an annual review requires much preparation and can cause just as much stress for the evaluator. Daily to weekly feedback is more effective and supports communication.
   Sothen, does that mean annual pay raises are still expected, or should they be given intermittently when small to large successes are attained?
2. 

   John Phillips says:

   May 21, 2010 at 10:25 am

   Cindy,

   Thanks very much for your comment.

   I believe the article I linked to in my post makes the same point about stress on the evaluator. In any event, it’s a good one and another reason to reconsider the use of annual performance reviews.

   I’m not sure that annual pay raises should have ever been expected. Under what some people are calling the “new normal” in light of our recent economic reversal, it’s likely that annual compensation adjustments won’t be given and shouldn’t be expected. Giving them only when large successes are attained may become the order of the day. That should also be true for executives as well as rank and file employees.

   It’s important to underscore the point you made about daily to weekly feedback, because the review of an employee’s performance is necessary. It’s just that the system we use now is broken.

   Thanks again for your comment.

   John
3. 

   R Heffley says:

   June 30, 2010 at 12:07 pm

   I have always believed performance reviews were tardy in evaluating performance. I tell my employees right away, and in specific terms, exactly what they are doing/not doing that does not meet expectations. I also tell them right away when what they are doing exceeds expectations. Employees have told me they appreciate the immediate feedback. Notes kept eliminate the need to take the time for a six week, six month or annual performance review.
4. 

   John Phillips says:

   June 30, 2010 at 5:34 pm

   R Heffley,

   If most managers and supervisors would follow your lead, workplaces would take some giant leaps forward.

   Thanks for your comment.

   John