Performance Reviews are here to stay and we need to reinvent them. Here are 10 best practices which will help you to make Performance Reviews an effective process based on 1. Feedback 2. Development 3. High Performance

1. 10 Ways to
Reinvent
Performance
Reviews
I n c r e a s e E m p l o y e e E n g a g e m e n t a n d
Pe r f o r m a n c e w i t h t h e s e b e s t p ra c t i c e s

2. Managers act as coaches
Coaching works best for developmental purposes
1

3.  Managers must be encouraged to act as coaches to enable employee development and increased work
efficiency.
 The process not only develops a good employee-manager bond but also helps in minimizing blind-spots
in the employee, develops new skills, enhances potential and guides the employee in achieving higher
goals.
 With the presence of a good manager, you will see the entire morale of the team going up, going that
extra mile, without even telling when required.

4. A good coach sets high
expectations and goals and
motivates and encourages
risk taking to a certain extent
and out of the box thinking to
achieve goals and solve
problems.
Wo r k- L i f e B a l a n c e I s E a s i e r
W h e n Yo u r M a n a g e r K n o w s H o w
t o A s s e s s Pe r f o r m a n c e

5. Employees who are
supervised by highly engaged
managers are 59% more likely
to be engaged .
“
-Gallup

6. Short term goals connected to larger
organization objectives
Essentially, increase the frequency of reviews
2

7.  The main problem with an annual appraisal or performance evaluation system is the lack of scope for
improvement.
 It is very essential for the manager to set short term goals and monitor the progress continuously to
have a detailed knowledge on the performance of the employee and the process involved in achieving.
 Regular meetings to discuss various touchpoints do help. Revision of goals, discussion on progress, helps
to do not spring a surprise at the year-end meeting and low engagement.
 No matter what level the employee is at, he/she should be able to articulate exactly how their efforts
feed into the broader company strategy.

8. When a manager sets a goal
at the start of a financial year
and tries to evaluate the
success at the end of the year
there is a big chance that the
management fails to see the
bigger picture- The actual
progress or the lack of it.
Why drop Annual from Performance Reviews

9. 69% of employees say they
would work harder if they felt
their efforts were recognized.
“
-Gallup

10. Customized Employee Development
Plans
Essentially, increase the frequency of reviews
3

11.  The main problem with an annual appraisal or performance evaluation system is the lack of scope for
improvement.
 It is very essential for the manager to set short term goals and monitor the progress continuously to
have a detailed knowledge on the performance of the employee and the process involved in achieving.
 Regular meetings to discuss various touchpoints do help. Revision of goals, discussion on progress, helps
to do not spring a surprise at the year-end meeting and low engagement.

12. Now every organization says
that they will be offering the
best compensation in the
industry. Then what is the
difference between you and
them?
Helping your employees to
learn and shape the future
direction of their careers.
W h y E m p l o y e e D e v e l o p m e n t I s
I m p o r t a n t , N e g l e c t e d A n d C a n
C o s t Yo u Ta l e n t

13. 53% of Millennials say
learning new things or having
access to professional
development opportunities
would make them stay at their
job
“
-EdAssist

14. Aligning goals
The operation was successful but the patient died is
a worst case scenario
4

15.  Let’s not forget that companies are the center of attention and they have hired people to get the work
done and not the other way around. The evaluation process must be such that there is a win-win
situation for the employee and the organization.
 Though we talk about employee development, high-quality work and goals aligned with it, we have to
make sure that every role is designed to meet the objectives.
 Regular meetings to discuss various touchpoints do help. Revision of goals, discussion on progress, helps
to do not spring a surprise at the year-end meeting and low engagement.

16. Aligning goals are often the crux
in making performance
management a continuous
process because it’s an iterative
process, where measure,
analyze, the act is part of the
cycle.
H o w t o A l i g n E m p l o y e e a n d
C o m p a n y I n t e r e s t s

17. Among employees who
strongly agree that their
manager helps them set
performance goals, 69% are
engaged
“
-Gallup

18. Keep the process transparent
People support what they help create.
5

19.  The evaluation process should be used as a development tool and not only as a method of ranking
employees.
 About Performance Reviews, it must be openly communicated to all the employees and allow opinions,
suggestions and feedback during the initial phase so as to make everyone comfortable and at ease with
the process.
 This enables the management to communicate their goals and expectations effectively and helps the
employees in understanding how they fit in the organization.

20. Performance Reviews have to go
beyond the setting of objectives.
It has to integrate itself with the
work culture, impart transparency
and trust, encourage honest and
constructive feedback from
internal customers.
Involving employees is key to performance
management

21. Transparent and readily shares
information 42%, Clearly defines goals
and expectations 42%, Ethical and fair
37% Dependable and consistent
“
-G e n X ' s t o p a t t r i b u t e s o f t h e
p e r f e c t m a n a g e r
IBM

22. Analyze the right kind of process
You don’t have to get rid of Performance Reviews,
but just Annual from it.
6

23.  GE went for a quarterly system whereas Adobe felt the need to review every two months.
 You don’t need to do away with Reviews, you need to find the one that suits your needs.
 The major aim of performance appraisal is to communicate the organization’s mission and values
effectively.
 Process selection comprises of the setting of expectations, communicating and aligning employees
towards it and reviewing on regular intervals for effectiveness.

24. You have to understand which
process suits you the best,
because you can eliminate
performance reviews. See the
best way you can incorporate :
1. Goal Alignment and
accomplishment
2. Employee Development
3. Feedback
W h y B u s i n e s s e s S h o u l d Re t h i n k
T h e A n n u a l Pe r f o r m a n c e
Re v i e w

25. 90 % of Annual Performance
Reviews are painful and ineffective.
“
-SHRM

26. Train Reviewers and Reviewees
This will take time, but has an invaluable long term
effect.
7

27.  Performance appraisals a development tool and should be treated that way. You don’t need to do away
with Reviews, you need to find the one that suits your needs.
 The Reviewers must be taught to plan, delegate, set goals, and to confront performance related issues
in an unbiased and neutral way.
 The Reviewees, on the other hand, must be taught what to expect out of such continuous process and
how the goal-setting will be managed and monitored.
 People can be taught on how to take feedback, positive and negative and channelize it.

28. They should be taught that for
an evaluation process to be
continuous, they must sit with
their team and understand the
difficulties involved and learn to
play a coach and mentor to
them. The feedback process
must be frequent and unbiased.
Wo r k- L i f e B a l a n c e I s E a s i e r
W h e n Yo u r M a n a g e r K n o w s H o w
t o A s s e s s Pe r f o r m a n c e

29. 43 % of highly engaged receive
feedback at least once a week
compared to only 18 % a week
“
-Gallup

30. Regular Feedback session
Make feedback process like muscle reflex
8

31.  When we are a small working group say 8, 10 or 15 people, on the floor feedback is like muscle reflex
and helps tremendously.
 Similarly, managers, peers can provide feedback, related to a completed task, an area of improvement,
through email or any other communication tool.
 The Reviewees, on the other hand, must be taught what to expect out of such continuous process and
how the goal-setting will be managed and monitored.
 Even though we are shifting the goal post on various touchpoints from the year to every 8 weeks or
quarter, there should be feedback given related to tasks for better results.

32. If the feedback is regular and
beneficial, it soon becomes a
regular process.
T h e m o s t i m p o r t a n t t o o l i n o u r
l i v e s a w a r d g o e s t o Fe e d b a c k

33. 65 % of the employees said they
wanted more feedback.
“
-Gallup Business Journal

34. Documenting feedback to remove bias
We need to record feedback to remove any memory
bias or remember extreme events.
9

35.  There is a need to keep the continuous feedback and as discussed in some points above, it not only
helps to improve upon work but also on making the process iterative.
 Recording feedbacks are important, just as documenting every activity of your prospect in your CRM
tool and even small details matter.
 It becomes especially important when the work force is large. This data can then be used to better
appraise the employees and provide them with a better work environment.
 Also removes memory bias or the halo effect towards the most recent activity or performance.

36. Feedback helps in retaining
employees as it contributes to
skill growth and career
advancements.
E m p l o y e e Fe e d b a c k H o w i t c a n
t ra n s f o r m a n E m p l o y e e

37. 78% of employees said being
recognized motivates them in job.
“
-Dick Grote
CE O o f Gro te Co ns ulting
Co rpo ra tio n

38. Separate the Compensation and
Performance Reviews
Performance Reviews which are tied with compensation, create a blame-oriented
culture
10

39.  Organizations which link performance reviews with salary increments, promotions and performance
bonus doesn’t fair well with employee performance as the feedback tend to be biased and prone to
forced rankings. This decreases employee morale and increases a negative attitude towards the
feedback and reviews given to them.
 The moment reviews and Performance Measures have a direct relation to the increment numbers, any
of the feedback, the discussion will not be honest. Make Performance Reviews only about Employee
Development.
 Make compensation dependent on Market Mid, Market Adjustment as per the local market.

40. If you planning to drive high
performance through money and
trying to hang it in front of your
employee, it’s a terrible idea .
S t o p B a s i n g Pa y o n
Pe r f o r m a n c e Re v i e w s

41. 83% of respondents said recognition
for contributions was more fulfilling
than any rewards or gifts
“
- Psychology today

42. Increase employee engagement with continuous
Performance Review
U n d e r s t a n d h o w h e l p s t o m a k e y o u r p e r f o r m a n c e
r e v i e w s c o n t i n u o u s a n d f e e d b a c k b a s e d .
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