Performance Reviews, A Necessary Evil?
Once or twice per year, organisations usually conduct performance review meetings, appraisals, with their employees. They use a template or a tool and define a specific framework to standardise the process around pillars such as appraisal period, rating scale, goal setting, competency assessment, and feedback rules.
Managers are trained in how to give, and receive, feedback. Generally, the performance rating spectrum reflects a bell curve that peaks between “Expectations met” and “Expectations exceeded.”
The performance management policy typically highlights that the main purpose of the appraisal meeting is to help employees perform better and further develop their skills.
All this sounds very good, right?
So Why Is It So Disliked?
Despite its intentions, the performance review process is often the most disliked of all HR processes. Both managers and employees perceive it as a painful exercise.
Scientific research also suggests that performance management does not necessarily improve performance. For example:
8 Reasons Why the Performance Review is Universally Hated by Tamra Chandler, 2016
Out of the Crisis by W. Edwards Deming
As a result, some larger companies have abolished their appraisal processes altogether, while others have removed rating scales.
If We Can’t Abolish It, What Can We Improve?
In many cases, abolishing the appraisal process is not an option due to labour law, regulatory requirements, or its role in determining variable remuneration.
So, what can be done to make it more valuable and acceptable?
7 Ways to Improve the Appraisal Process
1. Make It a True Dialogue
Create real goal agreements instead of top-down goal setting. Development goals should be as important as performance goals.
2. Align with Corporate Values
Ensure company values are reflected in the appraisal form. This strengthens the link between expected behaviours and actual behaviours, reinforcing culture fit.
3. Focus on Development, Not Past Errors
Shift the emphasis to growth and future potential. Mistakes should be addressed immediately, not stored up for annual reviews.
4. Introduce a One-Up Review
Have appraisals reviewed by the manager’s manager or another observer. This reduces subjectivity and adds balance.
5. Enable Continuous Conversations
Move away from once-a-year reviews. Maintain regular check-ins, weekly or monthly, to keep communication open and relevant.
6. Use Better Technology
Upgrade tools with features like real-time data, 360-degree feedback, accessibility, and integrated development plans. Make sure the system is user-friendly and engaging.
7. Prioritise Employee Experience
Focus on evolving employee needs, such as wellbeing, career aspirations, and work-life balance.
Incorporate reverse mentoring to create a genuine two-way dialogue. This is especially important for Millennials and younger generations.
The Missing Ingredient: Manager Mindset
Even with these improvements, the process will fail if managers do not approach it correctly.
A powerful framework to improve feedback culture is Radical Candor, developed by Kim Scott:
Care personally
Challenge directly
This combination builds stronger relationships and inspires people to perform at their best.
If you want, I can also tighten this into a punchy LinkedIn article or ITnation-style editorial.