Companies are changing HR practices to increase the effectiveness and frequency of performance reviews

The majority of employees have a performance interviews once a year or less.

“10% of Fortune 500 companies have done away with annual rating”
Source: The Washington Post

“Only 8% of companies report that their performance management processes drives high levels of value, while 58% said it is not on effective use of time”
Source: dupress.com

“At least 30% of the performance reviews result in decreosed employee performance”
Source: The Psychological Bulletin

How did these companies do it?

Real-time feedback

Frequent dialogues between managers and their employees

Providing experiences parallel to social media

Focused on spending less time & lower costs

Gathering high quality performance data

As a result of more frequent feedback, more measurable data and more transparency, the increase in employee engagement and 15% reduction in layoffs was observed.