It’s Time to Take the Leap: Why Eliminating Structured Performance Reviews Can Actually Improve Staff Management & Your Business
Performance reviews – when was the last time you heard managers talk about how excited they were to prepare for a review or saw employees eager to sit through one? Chances are, you probably never have. Managers see them as a time consuming process that does little to actually improve employee management and performance, and employees view them as excessively subjective and demotivating. Yet, a survey of 1,000 employers in more than 50 countries reported that 94% of them undertook formal reviews of workers’ performance on an annual basis.
So why do companies continue to implement performance reviews when it’s clear that today’s workforce is screaming for a shift in performance management? It’s simple – many businesses are fearful of changing the process. They are concerned that without structured performance reviews, employees could become complacent, or their overall performance might drop. While these are valid concerns, now, more than ever, is the time to take the leap to a different style of performance management. Here are three ways in which eliminating structured performance reviews can actually benefit your staff management and business:
- Enhance Business Communications: Today’s workforce thrives off of frequent communication. Traditional performance reviews only happen once or twice a year and can feel overwhelming. It’s also hard to remember and keep track of the specifics regarding an employee’s performance over an extended period of time. Instead, try communicating with your employees on a more casual and consistent basis. This will encourage strong communication between you and your employees that is vital to running a successful and healthy business.
- Increase Employee Confidence: Eliminating structured performance reviews and switching to frequent communications can also help increase employee confidence significantly. In fact, according to a survey from TriNet, 85% of millennial employees expressed they would feel more engaged in their current position if they could have more frequent performance conversations with their manager. Rather than being blindsided once a year with a list of performance improvements feeling in the dark about how they are performing, employees will have a consistent and clear picture of their strengths and weaknesses and will be able to make necessary adjustments quicker – ultimately becoming even better employees.
- Improve Employee Retention: For most companies, retention remains a top issue, and employee unrest has been making headlines across the globe. Annual performance reviews may be part of that issue. The same TriNet survey found that 28% of participants have responded to a performance review by searching for a new job. By doing away with structured performance reviews, employees will feel more comfortable with day-to-day workforce management. It will also improve company culture, making them more likely to stay in their current position. In return, saving employers the time and cost of hiring and training new employees.
At Deputy, we are helping companies across the globe effectively make the transition from structured reviews to frequent, more fluid communications in order to help both their employees and businesses thrive. Our workforce management solution’s Performance Journaling capability ensures that managers never miss a beat on employee performance by offering them the opportunity to make completely private, yet, authentic and honest notes regarding an employee’s performance in real-time, straight from their mobile device.
Just think about it… rather than tracking employee performance notes on paper, Word documents, in one’s head, or on a separate software program, managers can now seamlessly input comments on the fly within the same solution they already utilize for scheduling, payroll, internal communications, and more. Further, with instant access to these notes, managers no longer have to spend endless time piling together their thoughts along with documentation that is oftentimes subjective and unreliable, for reviews.
Instead, with Performance Journaling, all the necessary records are right at a manager’s fingertips, allowing for frequent and accurate communications with employees. For example, if a manager receives a comment about an employee’s superior performance during his Tuesday shift, the manager can document it instantly and then verbally share that info with the employee when he arrives for his next shift. Moreover, if issues with employees do arise, companies can ensure they are safeguarded by quickly and easily referring back to the Performance Journal for reliable documentation.
Want to learn more about how Deputy can help performance management for your business? Sign up for a free trial and get started today.
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