Performance reviews have been under scrutiny in recent years, and rightly so, they’re simply not being conducted effectively. Many people have claimed that those annual PDRs aren’t satisfactory, and are often demotivating. In fact, according to a McKinsey study 54% of respondents didn’t believe performance management had a beneficial impact on their work. So, the question is how did we get here and how do we move forward?
The Evolutionary Misstep in Performance Reviews
The conventional method of conducting performance reviews, while well-intentioned, reveals inherent flaws. These yearly assessments are frequently criticised for being perceived as arbitrary and detached from day-to-day workplace dynamics, often devolving into a mere check-box task at the end of the year. Originally designed to assess and improve employee performance, annual Performance Development Reviews (PDRs) have inadvertently transformed into a source of frustration. The infrequency of feedback fails to address real-time challenges and opportunities for improvement, leaving employees feeling disconnected and demoralised. This raises important questions about the true purpose and impact of the entire review process.
The Missing PDR Key
However, studies have shown that PDRs are actually extremely valuable when conducted correctly. They offer two key benefits: an evaluation of ones performance and a plan of action of how they can develop their skills to optimise performance. So let’s delve deeper into these main components of PDRs:
Evaluation of Performance:
- Objective Assessment: PDRs provide a platform for a comprehensive and objective evaluation of an employee’s performance over a specified period. This assessment often involves reviewing key performance indicators (KPIs), accomplishments, and areas for improvement.
- Recognition of Achievements: Positive aspects of an employee’s performance, such as accomplishments, skills, and contributions, can be acknowledged during the review. Recognising and appreciating achievements can boost morale, motivation, and job satisfaction.
- Identification of Challenges: PDRs help in identifying any challenges or obstacles that may have affected performance. This could include external factors, such as changes in the work environment, or internal factors, such as personal or professional development needs.
Development Planning in performance reviews:
- Setting Goals and Objectives: Following the evaluation, PDRs provide a platform for collaboratively setting realistic and measurable goals for the upcoming period. These goals align with both the individual’s career aspirations and the organisation’s objectives.
- Skill Enhancement: PDR’s highlight areas where an employee can enhance their skills or acquire new ones. This could involve training programmes, workshops, or mentoring opportunities to help the employee develop the competencies necessary for their current role or future career aspirations.
- Career Path Discussions: PDR’s often include discussions about an employee’s long-term career goals. This allows for alignment between individual aspirations and organisational needs, which creates a sense of purpose and direction.
The Secret to PDR Success
Now, many organisations have these annual PDRs, but like we’ve already stated they’re not really addressing the regular need for feedback. To truly unlock the potential of your team members, it is essential to integrate regular and ongoing feedback mechanisms that go beyond the formalities of an annual review. In creating a more fluid approach it not only keeps employees engaged but also ensures that learning and development is a continuous and evolving process. This can take the form of regular check-ins, flexible goal setting, acknowledgement of achievements, open communication and, having the difficult conversations when needed.
It Goes Both Ways
So, you’re now integrating regular feedback mechanisms into your schedule. It’s time to ask yourself does the feedback go both ways?
As a manager, it’s essential to create an environment where team members feel comfortable providing feedback on your leadership style, communication, and overall effectiveness. Here’s our list of ways in which encouraging two-way feedback will help your team dynamics:
- Demonstrating Accountability: By seeking feedback, you demonstrate accountability and a willingness to learn. This can enhance trust within the team, as team members appreciate a leader who is open to improvement and values input from others.
- Insights into Team Dynamics: Team members often have valuable insights into the day-to-day dynamics that may not be immediately apparent to a manager. Their feedback can provide a more holistic understanding of team interactions, potential areas of tension, and opportunities for improvement.
- Personal and Professional Growth: Just as team members aim for continuous improvement, managers should embrace a similar mindset. Feedback from the team serves as a valuable tool for your own professional development, helping you refine your managerial skills and adapt your approach based on the evolving needs of the team.
- Ensuring Alignment: Regular feedback from the team helps ensure that your managerial approach aligns with the broader goals and vision of the team. It ensures that your leadership style contributes positively to the team’s success and that any adjustments needed are identified promptly.
We need to highlight that whether it’s a formal performance review or a more casual feedback session, have the difficult conversations! Normalise constructive criticism, help your team see it as a positive thing, as it really is the most effective way to ensure development and combat mediocrity.
For more information on how to optimise your teams PDR’s and feedback get in touch here and let’s discuss how we can help.
