Performance reviews play a crucial role in driving organisational efficiency and ensuring operational compliance. However, for many businesses, performance reviews are often met with hesitation, with only 14% of employees strongly agreeing that their reviews inspired them to improve their performance.
Further research found that 74% of the UK workforce felt that traditional performance reviews were not useful, with 39% describing the process as both “pointless” and “time-consuming”, reinforcing the trend that they have become disconnected from actual employee performance and often fail to provide clear guidance for actionable improvement.
This raises a critical question: are complex performance reviews truly supporting the broader goals of the company and/or are they just a corporate routine that both employees and managers dread?
Mike Clyne, Founder and Director of FeMan Consulting, explores how performance reviews have evolved and why sometimes, less can be more.
The Problem with Complex Reviews
A fundamental issue with many performance reviews is the resulting ambiguity surrounding their purpose and outcome – the first question to ask is ‘Why are we doing them?’. If there is no discernible reason for them, then it will become a fruitless process.
A lack of clarity leaves employees confused, dissatisfied and unable to understand how their own performance aligns with the company’s objectives.
Generally, there are only four ways in which a firm can make more money:
Sell more of what you are already selling (or do more of what you are already doing)
Sell it for a higher price
Sell something else as well
Cutting costs
While these avenues for financial improvement are clear, the alignment of employee objectives can be vague, especially if these company-level objectives are not clearly defined or understood well by staff. This can then render the review process as a mere formality rather than a functional tool.
Make It Simple
Individual performance drives organisational performance. Development and alignment of individual goals with the company objectives must be prioritised. The targets set should also be traceable through the organisation from both individual and department level (depending on the size of the firm) and directly link back to the company’s financial strategies.
Once this has been done metrics and KPIs can be added where appropriate.
So, can less be more?
Yes. No employee has ever said, “That performance review process needed more complexity.” Simplification will lead to a better process promoting greater engagement and performance.
By re-evaluating your performance review process, you can transform your reviews into a positive and productive tool that focuses on quality and impact for all levels of the business.
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