It’s that time of year again.  The leaves are changing colors, children are back to school, and summer vacation is over.  For many organizations, this time of year not only means a return to a workplace routine, but it also means it is time for annual performance reviews.   

Yuck.  For many of my clients, the annual performance review is the most hated workplace ritual.  Why do the words “annual performance review” bring on a feeling of anxiety and dread to most employees and managers?

I recently held round table discussions with several staff members and asked this very question.  The answers I received were straightforward.  Annual performance reviews are uncomfortable, meaningless and a waste of time.  I have to say, I agree with that perception.

I don’t, however, believe that the annual review needs to be dreaded.  I think reviews can be productive, meaningful and a great way to build a trusting relationship between the manager and the employee.  I also think it’s fairly easy to turn things around and make the dreaded performance review a trend of the past.

First of all, the mere fact that performance reviews are typically annual is a problem.  Let’s think about it.  When we were in school, we were receiving regular feedback from our teachers on report cards, quizzes, tests and homework throughout the semester.  Imagine how unproductive and unmotivated students would be if they received one grade per year, with no feedback or other grades throughout the year.

Regular feedback between managers and employees is the easiest way to alleviate the fear of the annual performance review.  Many organizations have at least one mid-year check-in meeting, so at minimum there are at least two discussions annually regarding employment.  I don’t think it should stop there.  Providing your employees with feedback on an on-going basis is an effective and inexpensive way to motivate employees and build trust.  When it comes time for that formal annual meeting, there are no surprises.  Employees and managers can feel comfortable and focus on the future.  They can use the time to develop personal career goals and identify ways of achieving them.  They won’t need to waste time talking through whatever they can remember about the past year.

Secondly, I believe the traditional performance review is no longer relevant in today’s workplace.  The idea of a manager completing a form with ratings and delivering the final scores to their employee doesn’t make sense in today’s open and collaborative workplace.  Feedback should be a discussion, rather than a top down, one-way conversation.  This type of discussion not only is more productive, but it is more comfortable and rewarding.  The two-way conversation fosters trust.  A workplace relationship based on trust will bring out the best in both the manager and the employee.

There will always be ways to enhance forms and systems regarding performance, however I believe making simple changes to the communication – quantity and quality – will make lasting and positive changes at very little cost and time!