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Re-Engineering Recruitment by Ditching the Annual Appraisals

Annual performance evaluations or appraisals may soon become a thing of the past as companies move forward without them and try to re-engineer the way they evaluate people. In lieu of annual performance appraisals, some companies are conducting ongoing performance conversations.

Employees tend to get emotional about how well they did months or years ago and how much that past performance affects their salary and promotion. Furthermore, employees get uneasy about being compared with others in the conventional ranking evaluation.

Now, instead of looking into the past performances of employees and tying past performance with pay, organizations are now directing their views toward the future – motivating people to become better for future productivity. Meanwhile, managers conduct ongoing performance conversations to understand the status of each employee.

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By asking employees future-focused questions on a weekly or even daily basis, managers are expected to make objective assessment of each member of their team. In order for employees to get positive assessment score, they must carefully answer questions such as:

  • What job opportunities would you like in the future?
  • What preparations do you intend to do for those opportunities?
  • What support do you need and expect from the company going forward?

Some recruitment experts, however, are skeptical of this move. They say that eliminating the traditional performance review without understanding its cascading implications can ultimately render confusion and disarray within the organization. Insufficient training is the key reason why US companies fail from getting high performance management grades.

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Ongoing evaluation conversations could be the answer to the anxiety and nuisance brought by the dreaded annual appraisals. However, before any organization could ditch the traditional performance evaluations, they should first measure the effectiveness of their current performance evaluation strategies. This is because if they are currently doing well with appraising their employees, then there is no reason to overhaul the way they evaluate workers.

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