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It’s that time of year. People are writing their self-evaluations, HR departments are spinning up forms, and managers are deciding whether Johnny gets a 4 or a 4.5 on his collaboration skills. If you are looking to improve performance, this is not the process to help you. Let’s look at why the process is so draining for everyone, and what can be done to improve it. I’ve also included my company’s experience with quarterly goal setting.
Why do companies do annual reviews?
The goal is simple. Make sure employees are productively moving the company forward in the direction that’s been set by management. Getting everyone aligned and making sure everyone is pulling their weight is a noble goal. Evaluations also try to identify those employees who consistently do more than is asked.
The goal is to move the company as quickly and effectively as possible and to recognize the people who are responsible.
The Problem
The real problem with annual reviews is not the intent, but the initial setting of the goals, the annual timing, and the ranking system. While a quarterly goal process was our solution, other viable alternatives exist. Whatever you choose, look out for these soft spots.
