The future of performance reviews is continuous and crowdsourced

The global pandemic will, no doubt, have lasting impacts on our workplaces. This is particularly true of performance management processes, as companies look for ways to stay more connected and engaged with their remote employees. Even before the pandemic, companies were discovering that high-stakes, low-frequency feedback was not adding value to their business. Now, with the shift to remote work, there are fewer organizations with this one-time siloed event and there is a greater focus towards a more agile process where insights, feedback and goals are shared regularly, and it’s ok if those goals need to be recalibrated to meet the ever-changing demands COVID brings us.

Related: The new approach required for talent management post COVID-19

Data has long shown that short, frequent check-ins and ongoing feedback are key to employee success and can have a dramatic impact on engagement and morale. In fact, data shows that employees who check in with their manager at least weekly are more than twice as likely to trust their manager, five times less likely to be disengaged, and nearly twice as likely to believe they can grow in the organization as those who never have check-ins. Conversely, one-time annual reviews and lump-sum bonus payments have proven ineffective, with any lift in employee engagement or performance lasting only three to four weeks.

In a virtual world, where in-person interactions are slim to none, companies have realized that continuous check-ins are critical to driving employee performance and development and to make a positive business impact. Connecting via video conference, looking into someone’s eyes, asking them what they are working on and what support you can provide – these moments drive connection – which is why we’ve seen a dramatic 152% increase in check-ins this year through our continuous performance management platform. This in-the-moment feedback guarantees that it will be relevant and recent. It keeps the focus on today and tomorrow, versus what happened yesterday, which helps promote employee progress, goal setting and ties purpose to their work.

It’s clear that managers haven’t used remote work as an excuse to also go remote on feedback. For most companies, we have seen the exact opposite, with companies leaning in, performance review rituals changing, and continuous performance management growing increasingly popular. This doesn’t mean that end-of-year reviews need to stop altogether. But they shouldn’t be a company’s only tool in their performance management toolbelt.

Performance management is not one size fits all, so continuous performance management, particularly when crowdsourced, can be complementary to annual reviews by pulling in the many different voices of an employee’s team and colleagues that influence their performance. Ultimately, by shifting performance review tactics, end-of-year conversations can be more exciting, with a focus on what’s ahead rather than a session to talk about all that an employee did or didn’t do in 2020.

With 2020 pushing remote work into the mainstream, managers need to be overly flexible and understanding of designated time for work, family, and free time. Employee retention and overall job satisfaction will depend on leaders adjusting their management styles to make sure employees are feeling appreciated and supported, particularly while working remotely. Leaders must show how much they value employees, and they can do that by ensuring ongoing appreciation and feedback are part of company culture, part of their daily rituals and owned by everyone in the organization not just the managers.

Rosette Cataldo is vice president of performance and talent strategy at Workhuman.

Read more:

• Employees want a company culture that makes them feel connected
• 5 unconscious factors impacting your performance reviews and how to stop them
• 3 ways to get the most out of your employee feedback