Is it time to give up on performance appraisals?

Every workplace has its idiosyncratic seasonal events, and HR is perhaps most visible during the annual performance appraisal. Why? Because employees dislike them. They are time-consuming, involve too much paperwork, HR would even do better to drop them altogether and find a better performance-management tool. Sound familiar? You’re not alone.

A recent US poll of 2,677 people (1,800 employees, 645 HR managers, and 232 CEOs) by San Francisco-based rewards-and-recognition consulting firm Achievers revealed 98% of staff find annual performance reviews unnecessary. Remember – among the 2,677 respondents, a quarter were HR professionals.

Edward Lawler, professor of business at University of Southern California, reacted by declaring: “Performance appraisals are dead.” But he also unveiled research showing 93% of companies use annual appraisals, and only 6% have considered dropping them…..


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