The annual performance review process is broken, say employees in a new study from Crucial Learning, a learning company with courses in communication, performance, and leadership.
Annual performance reviews have long been a corporate staple and springboard to possible raises (or firings), but a July 2024 survey appears to show they are not as successful as organizations believe. In a survey of 900 people, just 45% of employees say their reviews are effective, yet 83% of supervisors say they feel confident in giving effective reviews. In addition, 1 in 3 employees say they were surprised at the feedback they received and only 1 in 4 believe they have been more productive following their review.
“Clearly, there is a huge gap between what employees are taking away from their organization’s performance process and what supervisors believe they are providing,” said Joseph Grenny, researcher and coauthor of Crucial Conversations. “Supervisors need to take a hard look at how they’re evaluating their direct reports. If they don’t, productivity will continue to lag and employees will become increasingly detached from the organization.”
The disconnect between supervisor and employee goes beyond the annual review to everyday feedback as well. While 97% of supervisors say they give regular feedback, only 56% of employees say they get any. Even when supervisors do speak up, it often doesn’t go well – almost half of employees surveyed reported their supervisor doesn’t have the skills to give worthwhile feedback.
And while both supervisors (93%) and employees (90%) almost universally say their organization values accountability, only 40% of supervisors and 37% of employees say people in their organization hold others accountable.
“Performance management isn’t a process—it’s about people,” Grenny added. “As supervisors, we need the right skills to consistently meet people where they are. We can begin by sharing our good intent, make it safe to have a conversation about their performance, and then together diagnose problems and agree on solutions.”
To help supervisors provide more effective performance feedback and hold others accountable, Grenny shares a few tips from Crucial Accountability and its companion course, Crucial Conversations® for Accountability:
1) Identify the right problem. Before the conversation, think “CPR” (Content, Pattern, Relationship). Ask yourself whether your key concern is with Content—a single incident; with a Pattern—an impression formed from multiple incidents; or with the Relationship—a concern about trust, competency, or respect that puts the working relationship at risk.
2) Make it easy. The best leaders recognize that leading is teaching. They deal with ability first and motivation second. They make it safe for people to ask questions and to admit what they don’t know. And they act as champions, uncovering and removing obstacles that prevent high performance and employee success.
3) Make it motivating. Skilled leaders understand that the opposite of “motivated” isn’t “lazy.” They assume most people are motivated, but that each person’s motivation can be different. Skilled leaders motivate by explaining their priorities and by listening to the reasons for the other person’s priorities. Explain your priorities by describing the natural consequences—the impacts, outcomes, or results—you are trying to achieve or avoid. If possible, stay away from imposed consequences and threats. Imposed consequences may achieve short-term compliance, but short-circuit understanding, and undercut commitment.
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About Crucial Learning
Crucial Learning improves the world by helping people improve themselves. We offer courses in communication, performance, and leadership, focusing on behaviors that have a disproportionate impact on outcomes, called crucial skills. Our award-winning courses and accompanying bestselling books include Crucial Conversations® for Mastering Dialogue, Crucial Conversations® for Accountability, Crucial Influence®, The Power of Habit™, and Getting Things Done®. CrucialLearning.com.
CONTACT: Jordan Christiansen, jordan.christiansen@cruciallearning.com