The Results Are In: Are Employee Reviews Still Relevant?

Unposed group of creative business people in an open conceptWe’re heading into the final stretch of 2016, and for many workplaces, that means it’s time for annual employee reviews. In October, we asked our readers if they believe annual reviews are still relevant, and according to the results, 53% say reviews are relevant—but they should be ongoing throughout the year. Another 17% believe formal, annual reviews are an integral part of a successful management strategy.

On the other end of the spectrum, 20% say employee reviews have little effect—good or bad—on performance, and 7% went as far at to say reviews actually do more harm than good.

Additionally, 3% of respondents selected the “Other” option and provided their own thoughts about annual employee reviews, including:

  • Every day is an evaluation. I do it for myself and my staff.
  • Annual is too infrequent. Constant and immediate is best.
  • They should be given only for exceptional and poor performers.
  • If used solely for salary/bonus, lacks meaning as budget determines result.
  • Performance reviews are vital in documenting and dealing with problem employees.
  • Review as needed; otherwise wastes time!
  • They are paper exercises to justify salary increase.

In the end, it all comes down to individual companies deciding if annual employee reviews are effective at helping their workforce grow and develop. Many factors contribute to the overall success of employee reviews, including company culture, industry, and level of seniority.

Check out these past Refresh Leadership articles for more insight into annual employee reviews:

How does your company handle annual employee reviews? Is the process productive? Let us know in the comments section below.

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2 Responses to The Results Are In: Are Employee Reviews Still Relevant?

  1. C.W. Lewis CMM November 10, 2016 at 10:36 am #

    From the employees view i think reviews are critical. Yes it is more work for the management team and we don’t always want to do but you really should. I have heard from new hires how bad they feel when they never got reviewed. I think it can be a quality bonding time as well. Yes you may see them everyday and comment to them but to take the time to go one on one that shows you care.
    MY two cents anyway.

  2. D. Warner July 18, 2017 at 7:52 am #

    As a Human Resource Manager, I believe that reviews are very important. We complete two reviews a year. We do a short mid-year review in July so the employee knows where there strengths are and what areas may need to be developed more. We also complete a comprehensive review annually, complete with a development plan for future growth. When the managers are completing the reviews they enlist information from other managers and coworkers and because we are a medical office, the physicians and other providers also give information. Salary increases are based on performance in our office, so although the budget may dictate increases to some extent, the amount of that increase for each individual is determined by their performance.

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