An interesting dynamic appeared as we reviewed the data by age group. For both employees and managers, a majority of those in the 18-24, 55-64, and 65+ age ranges believe that performance reviews are ineffective while a majority of employees and managers in the 25-34, 35-44, and 45-54 age ranges believe they are effective.
A common reason for why employees believe the performance appraisal process is ineffective is the annual nature of the evaluation process. Many feel like once a year coaching isn’t enough and introduce too many biases into the process. For example, many evaluations have a recency bias as managers focus on just the most recent activities.
Managers and employees alike believe the annual performance review processes are outdated (64%) or cumbersome (73%). HR professionals should find a balance between what they require and how they want it delivered and an efficient process for employees and managers. When a process takes an unusual amount of time, managers and employees begin to sour on the positive aspects.