Are Performance Reviews An Endangered Species?

Employee performance management has been mainstay of most organizations, yet is fraught with imprecision and dissatisfaction. Rather than serving as opportunity for providing direction, growth and alignment, it is more often seen as a necessary evil. The Aberdeen Group surveyed over 600 individuals: while 95 percent indicated conducting regular performance reviews, only 11 percent indicate satisfaction with the process in their organization. There is clearly a disconnect between the concept of performance management and it's successful execution. Aberdeen reported that two key performance criteria defined "Best in Class" Companies (BiC) with regards to performance management: Improved bottom line results: BiC companies experience a minimum profitability growth of 10 percent or move over last 12 months. Increased employee retention rates: 94 percent of BiC companies increased or maintained stable employee retention rates over the last 12 months. Coming in future postings: What are top five (5) pressures driving performance management? What are strategic actions necessary to achieve performance management goals? What is the connection between productivity, turnover and job match?