The Failure of the Annual Performance Review

Recognize This! – Annual feedback (if that) does little to motivate, inspire or keep employees on track.

Our semi-annual survey of U.S employees, the Globoforce® Workforce Mood Tracker™, found an overall dissatisfaction and disconnect among U.S. employees regarding both the frequency and effectiveness of performance reviews. (Read the news.)

• 53% received a performance review annually
• An alarming 22 percent reported never having a review at all.
• 24% dread the annual review more than anything else

A measly 7% receive monthly reviews of their work. When you look at all of that, it’s clear that companies have substantial motivational issues on their hands at performance review time. And who can blame the employees or the managers who have to review them? As our CEO, Eric Mosley, said in a press release last week on this topic:

“Providing employees with feedback and recognition only once a year is not only unfair, it minimizes the importance of each and every one of those people to the organization. An ongoing, 365-day review process that accurately measures employees’ year-round performance not only displays achievements, it uncovers the true leaders and influencers across the organization. This type of approach, driven by a strategic recognition program, provides employees with the feedback, appreciation, and direction they need to approach their peak performance level.”

What can you do instead?


Provide true meaning and value: Map all types of reviews (recognition and feedback) to specific company goals or values so you can provide employees with better understanding about the value they deliver to an organization.

Give feedback regularly and in the moment:
Reviewing and recognizing employees on-the-spot gives employees the information they need to align their performance to desired goals and values on a daily – not yearly – basis

Be honest with yourself and your employees:
Supplement old annual review processes with new recognition strategies to give employees a year-round feedback programs and managers greater workforce knowledge for employee performance optimization throughout the year.

Here's a news clip about the findings:



What else would you do to make the performance review process more timely, realistic and appropriate to employee and employer needs?

0 comment(s):