Performance review improvements needed
While many employers believe that they have an open and positive relationship with their workers, the reality might be quite different if they were asked.
One of the key ways to ensure employees are on the right track and happy with the current structure of the business is to conduct regular performance reviews. However, the results of a recent survey suggest that more focus is required in this area.
The Society for Human Resource Management (SHRM) polled close to 400 of its members throughout the US and asked them to grade how effective their performance reviews were.
According to the results, over half (53 per cent) of the HR professionals only scored their business a grade between a B and C+. A total of 21 per cent gave their organisation a C grade while surprisingly just 2 per cent awarded an A grade in the survey.
It was discovered that businesses that consider performance management an important function were more likely to score a higher grade.
In addition, 72 per cent of the businesses surveyed conducted performance reviews every year. A total of 16 per cent complete one every six months, while just 3 per cent don’t carry out any form of performance review.
However, there were many challenges to adoption that Director of SHRM’s survey programs Evren Esen explained in more detail. This included inadequate training, lack of tome and higher business priorities.
“The findings also show that it pays off when companies make performance reviews a priority,” she said.
“Because companies are putting less emphasis on blanket merit salary increases and instead moving toward incentive programs for high performing employees, performance management is becoming a key component of compensation reviews.”
For businesses that are committed to improving employee relations and talent, it is recommended to invest in HRMS software. The technology can keep track of performance evaluations and ensure they are completed in a timely fashion.