Abolish performance appraisals?  Certainly, if they don’t work!

Performance appraisals impede genuine feedback, and there’s no solid evidence that it motivates people or lead to meaningful improvement.

This isn’t just my opinion.  A survey by the Society for Human Resources Management found that more than 90% of appraisal systems are not successful.  In large part, appraisals fail because the very notion of rating people clashes with human nature.  The overwhelming majority of people view themselves as excellent performers.

Are Performance Appraisals (Reviews) Working for You?  A Quick Quiz…

Read each statement below and give your organization points based on the following scale:  Doesn’t apply = 0 points; Sometimes occurs = 1 point; Frequently occurs = 2 points.

  1. ___ In the past five years you have changed, reformatted, or completely revamped the appraisal process within your organization.
  2. ___Once appraisals are filed away, people pay little attention to the process.
  1. ___ You have to use tactics of force to get appraisals completed (threatening directives, withholding increases, posting the names of tardy supervisors, etc.).
  2. ___ Supervisors frequently complain about the bureaucratic nature of the process and wasted time required for paperwork.
  3. ___ Each year a substantial number of employees see the process as unfair and are even demoralized.
  4. ___ Marginal performers have a track record of being rated generously, having the effect of creating an impediment to discharge.
  5. ___ Because of inconsistencies in approach, appraisals have little value as a screening tool for promotion applicants.
  6. ___ Appraisal ratings are inflated en masse, making the linkage to a “pay for performance system” ineffective.
  7. ___ Supervisors’ and employees’ alike go through the motions, putting little heart into the process.
  8. ___ Dissatisfied employees take up human resources staff time with bias, complaints, and rating appeals.

Scoring

Add up the number of points you have from each question.  What’s your score?  _______

1 – 5           People seemingly are very satisfied with your process.  You are a very rare company as only 5% of organizations report such success.

6 – 10         Warning: There may be substantial problems in your present rating system.  Many in your company are unhappy and depressed about the process.  It’s time to investigate abolishing performance appraisals altogether.

11-20         Beware:  It’s definitely time to look at alternatives to the traditional appraisal model your company is using.

Top 5 tips for what you can do instead to keep your teams motivated…

  1. Create a compelling vision.  To find meaning, people need to connect to the service or product of the organization, not the financial statement, though certainly that is important.  People need to understand how their work connects to the organization as a whole.
  2. Promote and provide interesting work.  People will be energized and motivated if they are doing work that feels worthwhile and is interesting to them
  3. Give people freedom and choices in their work.  All managers need to understand the power of giving people trust and freedom in doing their work.  This means finding ways to be more fluid and less structured, allowing people, as much as possible, to choose work that aligns with their individual interests and strengths.
  4. Offer people challenges.  Many people yearn for and thrive on having challenge in their work.  This can be provided by offering people more responsibility and the opportunity to learn new skills and grow in other ways.
  5. Create a climate of people working together.  In so many ways, conventional organizations emphasize the individual—individual goals and appraisals are examples of this.  Instead, foster ways for people to work together, to share meaning, and connect with one another. There’s no better time to promote collaboration and working in teams than when you are moving away from appraisals.