By Daniel Hunter
Recent data (PwC research) suggests that two thirds of large corporations are making changes to their end of performance reviews, with 5% of companies looking into viably dropping performance ratings altogether.
The 2015 PwC Performance Management Research survey spanned the UK, and after gathering answers from more than one thousand employees, it found a huge overhaul in the performance management process, the key focus still being motivating employees and encouraging engagement.
The research shows that both employees and managers do not find year-end performance checks productive or useful; instead, organisations are beginning to focus on a continuous loop of feedback and taking the emphasis off year-end appraisals.
PwC’s research shows that over half (53%) of employees’ bonuses are determined based on individual performance. And although wider recognition and non-financial rewards are becoming more valued, the research found that of all the reward tools available to HR bonus remains an important motivator.
The research also revealed that the majority of employees find the year end performance review useful. Of those employees surveyed, nearly two thirds (67%) said they help them understand how they are doing, four in 10 said they motivate them and nearly half (48%) said they help them progress and think about their career. Only just over a third (37%) said the end of year performance review is a waste of time. Overall, a lot of people voiced their want of feedback on a more regular basis — every six months was the most popular option, followed by quarterly feedback.
Employees in general also think that their ratings have been judged fairly. Nearly two thirds (65%) said their last performance rating was fair and a similar number (63%) said it was expected. Where employees felt that change was needed was in the quality of performance assessments.