6 Upcoming Performance Review Trends You Need to Jump On

2 min read
Mar 16, 2015

iStock_000034520970_SmallPerformance reviews are finally getting the much-needed attention they deserve. And it’s about time! Last year, a survey by Deloitte found that a bare 8% of HR respondents believed that their performance management process drove business value. However, there was a surprising jump. A total of 75% of respondents rated the importance of performance management as “important” or “very important.”

It also looks like organizations are throwing out age-old methods and opting for strategies like goal setting, coaching, and even steering away from talking about an employee’s weakness. Here are the six trends that are predicted to take over the performance review process:

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  1. Less focus on evaluation: Managers are steering away from the five-point scale. And when you think about it, it’s a good thing. The scale was inconsistent, and managers didn’t have real standards to measure their employees’ performance against.

  1. Professional development: Since there’s less evaluation, managers are focusing on helping their employees develop. They’re showing more interest in their employees' career path and helping pave the way to success.

  2. Goal setting: You can’t have development without goals. In order for employees to succeed and thrive, managers are helping their employees set stepping stones  and providing them with a clear direction on how to get to these goals.

  1. Managing strengths: In the past, performance reviews were notorious for pointing out an employee’s flaws. However, the modern review is playing to an employee’s strengths. In fact, research has shown that a person’s best performance comes when they are given meaningful work that leverages their strengths.

  1. Regular feedback: Goodbye 12-month time lag. In order to keep feedback relevant, managers are moving towards conducting weekly one-on-ones with their employees. That way, employees don’t have to wait months to hear how they’re doing and get recognized for their work.

  1. Separation from compensation: GuideSpark found that one-third of employees are confused about how their company’s performance rating system is tied to compensation. Organizations are moving towards measuring compensation based on an employee’s market conditions and competitive value.

From what we can see, performance reviews are moving away from evaluating an employee’s performance to determine raises. Instead, managers are shifting their focus to the future and using these reviews to help employees develop professionally.




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