This is a question I’m often asked by managers, so I thought I would answer it here. A performance appraisal can occur in two ways – informally or more formally (or systematically.) Informal appraisals can be carried out whenever the supervisor feels it is necessary. The day-to-day working relationship between a manager and an employee offers an opportunity for the employee’s performance to be assessed. This assessment is communicated through conversation on the job, over coffee, or by on-the-spot examination of a particular piece of work. Informal appraisals are especially appropriate when time is an issue. The longer feedback is delayed, the less likely it is to encourage a change in behaviour. Frequent informal feedback to employees can also prevent surprises when the formal evaluation is communicated. However, you should make sure that they don’t become too informal – don’t be tempted to discuss an appraisal in the pub! Although informal appraisals are useful, they should not take the place of formal appraisals. These are used when the contact between a manager and an employee is more formal. This could be when they don’t see each other on a daily, or even weekly basis. It requires a system to be in place to report managerial impressions and observations on employee performance. When Should You Carry out Appraisals? Appraisals typically are conducted once or twice a year, most often annually, near the anniversary of the employee’s start date. For new employees, common timing is to conduct an appraisal 90 days after employment, again at six months and annually after that. ‘Probationary’ or new employees, or those who are new and in a trial period, should be evaluated frequently—perhaps weekly for the first month and monthly thereafter until the end of the introductory period for new employees. After that, annual reviews may be sufficient. Some managers prefer to meet with their employees more frequently. Some companies in high-technology fields are promising accelerated appraisals— six months instead of a year—so that employees receive more frequent raises. The result for some companies has been a reduction in turnover among these very turnover-prone employees. A regular time interval is a feature of formal, systematic appraisals that distinguishes them from informal appraisals. Both employees and managers are aware that performance will be reviewed on a regular basis and they can plan for performance discussions. In addition, informal appraisals should be conducted whenever a manager feels they are desirable. Should We Talk About Pay As Well? Many experts say that the timing of performance appraisals and pay discussions should be different. The major reason for this view is that employees often focus more on the pay amount than on what they have done well or need to improve. Sometimes managers may manipulate performance appraisal ratings to justify the desired pay treatment for a given individual. However you carry out appraisals – whether informally or formally – take some time to think about the pros and cons of the different options. This will help you implement the best process for the development of your business and your employees. We suggest that a formal or semi-formal review of performance be done at least twice a year, since a once a year process isn't as helpful in helping you, the employee, modify or improve your performance, since often it's too late. Also, it's hard to remember what might have happened a year ago. However, it's important that employees understand that while a more formal discussion about performance may only happen once or twice a year, it's absolutely imperative that there be ongoing communication about your job tasks and responsibilities all year long. In almost all cases that communication about performance, job tasks and expectations can occur in informal setting and in informal ways -- a kind of dropping in (by you or the manager) to talk about a specific problem or triumph, or to address a particular challenge. It's easy to let things slide if you put all the responsibility for job communication on the shoulders of your manager. It really should be a joint responsibility. See Also: My Boss Has No Interest In Having a Formal Employee Evaluation. What Should I Do? For more detailed information about how you, as an employee, can enhance the benefits of performance reviews, click here to preview Getting the Most From Performance Appraisals For Employees. Most workers value candid discussions on workplace performance. They want regular and more-transparent performance feedback. But employees don't believe that management has a good grasp of performance assessments and related guidance. Sometimes the review process does more harm than good. According to a 2019 study from Gallup, only
about 10 percent of U.S. workers felt engaged after receiving negative feedback on the job. And nearly 30 percent were so put off by a negative review that they began actively looking for a new job. Moreover, 55 percent of workers believe annual reviews don't improve their performance, according to a 2019 Workhuman Analytics & Research study. So, it's not surprising that the number of companies conducting annual or semiannual reviews has fallen in recent years. "The traditional performance-management approach has become outdated," says Rosette Cataldo, vice president of performance and talent strategy at Workhuman, a human capital management software company. Some companies have begun moving toward providing continuous, real-time feedback throughout the year. "This new-and-improved model is reflective of how work actually gets done and leads to increased engagement," Cataldo says. So Many Problems If you ask a workplace expert—or an employee, for that matter—what's wrong with the performance-review processes, the answer might be, "Where do I start?" "The challenge with annual reviews is that they're a collection of indirect, out-of-context feedback that a supervisor or boss is supposed to deliver long after a project has ended, so the feedback is no longer educational or useful," says Susan Clarke, co-founder of Thrive, a coaching and consulting firm in Whitefish, Mont. "Feedback is scary to many," says CrisMarie Campbell, Thrive's other co-founder. "People often think it means that they did something wrong or that the other person is mad at them." And that may be why we avoid giving that feedback in real time, she says. Feedback is more effective when check-ins are frequent. "That way, you're able to clarify expectations before a team member or colleague gets too far ahead in a task or a project," Campbell says. And workers who check in with their manager at least weekly are five
times less likely to be disengaged than those who never check in, Workhuman found. Evidence is growing that
organizations are getting better at recognizing and valuing staff members, with the approach shifting in two significant ways, according to Kyle Brost, chief executive officer at Spark Policy Institute, a Denver-based business consultancy that specializes in corporate employee engagement tools and strategies. "First, leaders are looking for more ways to use data," Brost says. "Feedback can be very subjective and lack context. For this reason, leaders are turning to more data sources to inform feedback." That approach offers several advantages. "Data emphasizes both individual contributions and organizational processes that are working, along with any misalignments between the two," Brost says. "Additionally, the sources and means for collecting this data are becoming increasingly accessible, human-centered and user-friendly." For example, data software packages such as 7Geese, Bamboo HR, CRG emPerform, Officevibe and Saba Cloud all have tools to help managers provide
feedback on a regular, year-round basis. 'For companies to be agile, feedback must get Karen Crone Second, the old approach to feedback as a one-way street, where the organization's leaders are all-knowing and the employees just need to get up to speed, is quickly dissolving. "Individual perspective, expertise and value are being recognized at a greater level than ever before," Brost says. "This means that feedback is no longer about the organization simply talking at the employee. It's becoming a two-way street where individuals are able to bring feedback to the organization." But we're not there, yet. he says, "The structure, intent and outcomes of feedback still need to shift to align with this more accurate and valuable approach." Tighter Review Cycles One trend companies are turning to is a tighter feedback calendar cycle. Consequently, the once-yearly employee review is falling out of favor. In 2016, 82 percent of workers surveyed said their company used an annual review. That number dropped to 65 percent in 2017, 58 percent in 2018 and 54 percent in 2019, according to the Workhuman report. "Feedback will become more informal, more iterative and more frequent," says Karen Crone, chief human resource manager at Paycor, a human capital management company. Paycor has 12-week performance discussion cycles called "CONNECT sessions," according to Crone, which better mirror the company's business model and include employee reviews. "Think about it as a 12-week year," she says. "In that regard, our employee discussions don't require a laborious form, but rather a quick-hit review of what's been accomplished, what's next and how the person is developing. That way, the employee and the manager have an equivalent voice in preparing for the conversation." Paycor wants its employee feedback sessions to be "informal, iterative, frequent and
balanced," Crone says, with managers and employees sharing responsibility for the reviews. "For companies to be agile, feedback must get closer to real-time."  Employees are encouraged to take an active role in the process. "As more work is completed in self-guided teams, team members
take more responsibility for feedback," she says. "The manager continues to be the focal point for career conversations, with performance assessment coming from the team, and team members holding one another accountable, supporting one another when there are obstacles and pointing out missed expectations." Internal Feedback Tools Some companies are following suit and developing their own employee-centric evaluation models that don't look like the "one-and-done" evaluation model that old-line companies were doing decades ago. "At PwC, we believe in the power of frequent, informal feedback," says Rod Adams, U.S. and Mexico talent acquisition leader at the consultancy. "Allowing for regular feedback conversations, versus the traditional annual review, helps individuals to maximize their strengths, quickly close gaps, and drive learning and development in real-time throughout the year." PwC has accelerated that process with its own real-time feedback tools. "We have developed what we call the PwC Professional for real-time feedback," Adams says. "All our staff are recruited, developed and managed against the PwC Professional's five attributes for leadership, which are whole leadership, business acumen, technical capabilities, global acumen and relationships." The PwC feedback model allows managers to leverage a 360-degree feedback program with performance management and career development tools that gather insights from everyone in the workplace—managers, peers and subordinates. Data is collected through a combination of surveys, reports, and coaching and collaboration tools. PwC also tracks feedback over time and charts progress across the five areas of leadership, he says. The company conducts regular staff engagement surveys, Adams says, and the employee response to the real-time feedback culture is overwhelmingly positive. "It's a win-win for everyone, allowing for real
opportunities to learn on the job while also encouraging leadership at all levels." Communication in a Crisis When the threat of the coronavirus became apparent earlier this year, feedback became much more difficult at companies across the country. "Working apart from your team is very challenging as you're not sure of their progress and how things are going," says Michael Lowe, CEO at CarPassionate.com, an auto parts web platform based in Phoenix. "It's easier at the workplace, where you can go visit an employee on the job or they can come to you and discuss productivity or chat about plans." When working remotely, Lowe stressed the need for the right tech tools and software to better connect with employees. "Providing employees with good feedback shouldn't be a challenge if you're using the right assessment tools [such as employee evaluation platforms] and communication tools [like videoconferencing]," says Pete Sosnowski, co-founder at Zety, a job search platform based in Warsaw, Poland. "Remote work requires an increased focus and motivation to maintain productivity," Sosnowski says. "There are many factors that can disrupt standard work activities, from the unsuitable work environment, the presence of family members and distractions, to lack of work peers and managers." To overcome those disruptions, he recommends that companies provide frequent feedback. For example, instead of quarterly reviews, he suggests aiming for monthly or biweekly feedback. Managers can also solicit feedback from workers. "As a manager, you're put in a completely new situation, as well, in managing a remote team," Sosnowski says. "You should use feedback from your team members to see how you're handling this new situation." When providing feedback and direction remotely, clarity must be a priority, says Jake Penney, head of human resources at English Blinds, an online blinds and home decor company based in Solihull, England. "During the COVID-19 crisis, providing feedback remotely and ensuring that the right message
gets across can be challenging," he says, "because there's so little context and tone for such remote interactions." He recommends speaking by phone or video conferencing to personalize feedback and reduce the chances of misunderstandings. Real-Time Feedback What will reviews look like in the future? Certainly, time-honored traditions such as meaningful face-to-face interactions (even if it's via Skype) will prevail—with a heavy dose of 21st century technology added into the mix. "The annual performance review is a retrospective, and looking backward over a full year can be useful," says Michael L. Zirulnik, executive director of The Varsity Project, a communication consultancy in Phoenix, Ariz. "But without context, it's often too distant for us to do much of anything with, and employees may walk away unhappy." That's why more companies are leveraging increased technological feedback in task-oriented environments. "For instance, on the flight deck of an aircraft, there are dozens of tech tools offering pilots feedback they can use immediately to improve the performance of the aircraft and how they fly," Zirulnik says. "If you're a pilot or a surgeon getting real-time feedback from technological tools that enables safe operation, the feedback is almost always accepted." Companies such as Starbucks and Arizona's Motor Vehicle Division have introduced real-time feedback tools in most of their stores and service locations,
Zirulnik says. "These tools indicate, among other metrics, how well the employees are delivering product to the customer … It's an effort in creating efficiency to service a predetermined number of people per minute or per hour." 'Feedback needs to be treated as an employee empowerment tool and not as a punitive measure.' Michael L. Zirulnik But what about feedback in settings that aren't as task-oriented? "With respect to office environments or creative tasks, it means
having a leader that finds the time to review, assess and consult with employees regularly," Zirulnik says. It may be time-consuming, but there's no substitute for interpersonal relationships where meaningful feedback is communicated—and that's where real-time feedback tools can help. But not all employees relish real-time feedback, at least as it's presently structured. To change that, organizational cultures need to shift, Zirulnik says. "Feedback needs to be treated as an employee empowerment tool and not as a punitive measure." The business benefits of that are numerous. "Organizations that offer feedback as a matter of employee success and not as a means to discipline will tend to have a healthier culture," Zirulnik says, "with more productive, happier, efficient employees." Brian O'Connell is a freelance writer based in Bucks County, Pa. Explore Further SHRM provides advice and resources to help employers better manage and assess employee performance. A comprehensive performance management system can play a strategic role in attracting and retaining key employees. It can also help significantly improve a company’s overall business performance. If you have a performance review system, consider suspending it during the coronavirus pandemic—not only because the current work upheaval may make the review less than accurate or useful, but also for psychological safety.
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