How Dropping Annual Reviews Led To A Drop In Performance
Read today’s article from Lydia Dishman of Fast Company Leadership and her insights into the consequences of ditching those dreaded annual reviews. My key points from the article are below.
- Recently, a number of Fortune 500 companies have publicized how they’ve stopped their annual performance reviews leading to a fall of 10% in employee engagement and performance
- Studies show that instead of increasing the opportunity for more informal chats about performance, managers have spent less time with their employees in discussion
- An increasing lack of employee engagement is, in part, due to the decline in communication, and no longer having a forum in which to discuss potential pay rises