Bonus time: Five ways to get your performance reviews right
Performance management systems have generally struggled to keep up with changes in the ways in which work is carried out
As bonus time for many draws near, many managers and staff reflect on their performance reviews. Companies spend millions every year going through the elaborate ritual of strengths and weaknesses, development opportunities and forced ranking – but do the results reflect the process?
Accenture conducted a survey of 2,100 business leaders and employees in organisations across North and South America, Europe and Asia Pacific.
It found while 94 per cent of managers are convinced performance management improves business performance, only 34 per cent of all respondents believe their current approaches effectively support the objectives of the business.
In fact, almost nine out of 10 employees said their performance would improve if their company’s performance management improved. From developing and growing employees (just 40 per cent) and retaining staff (28 per cent) to engaging and motivating them (40 per cent) and making fair decisions about their bonuses, pay increases and promotions (36 per cent), faith in current approaches is alarmingly low.
Employees are rightfully suspicious — and can become unmotivated — when performance management is a ‘black box’ where both inputs and outputs are obscure and inconsistent
The problem is performance management systems have generally struggled to keep up with changes in ways in which work is carried out. Just as consumers demand personalised experiences, employees are expecting to be evaluated and encouraged in more personalised ways.
