A number of well known companies have recently announced that they are getting rid of the dreaded annual performance reviews and revamped their review processes. Among those are Accenture and Deloitte, but they join Microsoft, Adobe, Gap, Medtronic and others in realising that the old way of conducting performance reviews is deeply flawed and ineffective.
In a survey conducted by Deloitte, it found that more than half of the executives questioned did not believe their employee review systems drove employee performance or engagement. And they’re not alone. According to a different survey, six percent of Fortune 500 companies have already replaced traditional annual performance rankings, and the number is growing.
But what do these companies use in place of old rankings systems and 360-feedback models?
The new systems generally:
The research bears this approach out as being more effective at actually generating higher employee performance because people are no longer dwelling on what happened in the past, but instead focusing on how to improve in the future.
Bernard Marr is an internationally bestselling author, futurist, keynote speaker, and strategic advisor to companies and governments. He advises and coaches many of the world’s best-known organisations on strategy, digital transformation and business performance. LinkedIn has recently ranked Bernard as one of the top 5 business influencers in the world and the No 1 influencer in the UK. He has authored 16 best-selling books, is a frequent contributor to the World Economic Forum and writes a regular column for Forbes. Every day Bernard actively engages his almost 2 million social media followers and shares content that reaches millions of readers.