Are Performance Reviews endangered?

It is refreshing to see a trend that is really gaining momentum within the Human Resources community.  It is a trend that calls for the abolishment of performance reviews.  I have recently been interviewing a number of Chief Human Resource Officers as well as Senior V.P. 's of Human Resources and many of them have the intention of completely phasing out performance reviews at their companies.

There are a number of reasons as to why they are no longer being viewed as effective:

-They are often only one manager's opinion of an employee’s performance at a specific time of the year

-there is high likelihood that not everything that the employee has done over the year is likely to be remembered

-they create tremendous tension and anxiety for many employees, despite whether or not they have had success versus their mandate

-managers hate the process and despise placing business on hold for what is often perceived as a "make work" project

If employees and staff are not engaged and often despise the process, how helpful can it be?

So what is the proposed replacement to performance reviews?

Many are now focusing attention towards:

Coaching - One on One that focus on the positives which has a far better track record of increasing the likelihood of performance improvement as well as completing it in a faster manner. Employees are more likely to feel satisfaction and growth due to this personal achievement, instead of training that is forced on them in order to move the employee towards an "acceptable" employee performance level.

Soft education opportunities - Lunches and group events that also include teaching, comradery and employee engagement

Peer group mentoring – These are opportunities to learn as well as give back to other employees.  This is always beneficial for both parties as it creates personal growth for both sides.

Mastermind groups – This is the act of establishing groups of experts from different areas and having them work together for project work.  This allows employees to stretch themselves and allows them to learn from each other’s skill set.  This will make the employee more well-rounded and as a result of proving themselves, it will also allow them to be considered more often for future promotions. 

Farewell,

Mike