how valuable are performance reviewsI know you have an opinion, because most everyone does.

According to a survey done by the Robert Half organization, 62% of workers feel that the feedback they receive semi-annually or annually in their performance review is at least somewhat helpful in improving their performance.  But 31% don’t consider it helpful at all.

Compare that to the view of executives (CFO’s in particular in this survey), of whom 94% thought the performance reviews helped the performance of employees.

Where do you fall on this important question?

What strikes me about the survey is how differently those leading the reviews feel compared to those receiving the reviews.

In the leadership training I lead where performance reviews are discussed, I typically ask leaders how they feel about their reviews (as a receiver), and the majority don’t feel so great about them.  This is instructive because this is a sample of people who in most cases want to grow and improve so you would think their scores would skew to a more positive view.

There are two problems here – the delusion of value and the way performance reviews are delivered.  The reality is that these two problems are joined at the hip, like Siamese twins.

Let’s be clear, the underlying goal of the performance review process is a good one – to make sure in our busy working lives that we stop and have conversations about performance with others.  Without benchmarks, feedback, and support, it is difficult for anyone to learn, grow, and improve.  (And, by the way, it is likely that this underlying goal is why most leaders assume the process is working for those they lead).

The problem with performance reviews is that they are too often done so poorly that these benefits are contorted or lost completely, which is why fewer employees feel good about their value.

While this topic deserves a book-length conversation, let me make three suggestions to both leaders and employees that will make performance reviews more useful.

Both of you are responsible for success.  Employees – it is your performance and you are ultimately responsible for it.  Prepare for the conversation by reflecting on your performance in a balanced way.  Listen carefully and with an open mind to the perspective and feedback shared with you.  And leaders – prepare for the conversation and bring a balanced view of performance – spending at least as much time on people’s strengths and successes as you do on their shortcomings and weaknesses.  If you both bring your A game and are engaged in the process, it will be more more purposeful and less painful.

Make it a conversation. A performance review isn’t a time for the leader to lay out all that they have prepared and then, in effect ask, “Any questions?” Yes, you have a form to fill out, and yes, that is an outcome of the process, but make the performance, the results, and the future the focus of the conversation. If the leader is talking more than half of the time, you aren’t doing it well.  Leaders – ask, shut up, and listen, and employees – engage!

Make it a part of the work.  Perhaps the biggest challenge with the formal performance review process is that it happens once (or twice) a year, but people are performing every day. There is a place for the annual conversation, but it is much more productive and valuable if there are ongoing, formal and informal conversations about performance, learning, and growth.  Leaders – share what you are seeing, and employees – ask for feedback and perspective more often.  When both of you are doing that, the results will be better, and the value of the performance review process will improve.

photo credit: Victor1558 via photopin cc

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Kevin Eikenberry is a recognized world expert on leadership development and learning and is the Chief Potential Officer of The Kevin Eikenberry Group. He has spent over 30 years helping organizations across North America, and leaders from around the world, on leadership, learning, teams and teamwork, communication and more.

Twice he has been named by Inc.com as one of the Top 100 Leadership and Management Experts in the World and 100 Great Leadership Speakers for Your Next Conference. The American Management Association named him a “Leaders to Watch” and he has been twice named as one of the World's Top 30 Leadership Professionals by Global Gurus. Top Sales World has named him a Top Sales & Marketing Influencer several times, and his blog has been named on many “best of” lists. LeadersHum has named him one of the 200 Biggest Voices in Leadership in 2023.

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  1. Good stuff Kevin. The other problem I’ve noticed with managers I’ve worked with is that often managers focus on past performance (often the negative bits) and forget to look at the development of the individual for the future.

  2. I always told my employees when we sat down to do their reviews that there should be nothing in this review that is a surprise, if I had an issue with performance I never waited until the annual review to tell them. I, too, used reviews as a tool to focus on the future. If I wanted an employee to work on a skill, it was clearly tied to our goals/objectives, they knew why I needed them to work on the skill, and they left with specific strategies on how to work on the skill. Most of my employees reported the review was more empowering than any review they had in the past. And, the organization benefited tremendously!

  3. Performance information must be traded on a regular bases. This is the only way for anyone to have an ongoing perception of how they are doing. Like the article stated a yearly review is only SOMEWHAT helpful.

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