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Replacing the Annual Employee Evaluation

7. May 2018 11:25

By: Mike Hill, Michael W. Hill Company

Recently I’ve read a couple articles, and I’ve even had some friends and business acquaintances send me articles, with titles like: “Companies Ditching the Annual Performance Review”! And annual reviews will no longer be given at many Fortune 500 or Inc. magazine top 500 companies. Knowing that I’m a strong advocate for employee performance evaluations, my friends who send me these articles they think they’re shocking me.

These business people fail to read past the attention-grabbing headlines. Many managers, like most of their employees, “hate” giving or receiving a review, so they think these articles with these titles give them good sound bushiness reasons to stop the review process all together.

I’m encouraging everyone to read past the “Shock and Awe Title.”

Once you get past the title you’ll see that yes, IBM, General Electric and SAP are dropping their annual reviews. But in actuality, what each company is doing is replacing the annual review with more frequent reviews. It’s an idea I’ve been advocating for years with the audiences I speak to and the executives I work with.

The annual review has fallen out of favor because the business world is changing too quickly, hence company goals and targets are changing weekly, monthly or at least quarterly. So, what the excellent companies are finding is that their employee evaluations need to be a continous performance management process.

The fact of the matter is, if you want to make your company as successful as possible, you need to evaluate your people and probably more often then you currently are.

Occasionally I’ll hear from a company owner: “Mike, we don’t evaluate our employees and we do just fine.” My response is always the same: If your goal is to be a company that does – just”fine” or is content to be “mediocre,” don’t do employee reviews. But if you want to be recognized as a leader in your field and a company that is more profitable and successful than “mediocre,” measure your employees.

Whenever you can, measure, and you’ll see results in the improved performance of everyone on your team.

 To learn more on this subject, check out Mike's session, "Using Measurable Data to Get Maximum Employee Performance" at the IWF 2018 Education Conference.

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