Why is it time to ditch the annual appraisal process and replace it with real-time feedback?

Is it time to revamp your performance management system? What was once an annual activity is now transforming into a new and more efficient process. The traditional appraisal process was characterized by the evaluation of employees based on past performance. It also was more inclined towards the determination of financial rewards and was too bureaucratic and centralized. In most cases it did not include the participation of the employees being assessed. Gathering quantitative information instead of qualitative information that can be used for the betterment of the organization was emphasized on.
In reality, the performance management system should be built around concepts that provide value to the company and should also focus on employee development. This is exactly why it should not be a once a year process – it should be a real time process with continuous feedback.
Feedback is more valuable when given in a timely manner – immediately after the display of good behavior. That will reinforce what is correct or right for the organization. Creating a recognition rich environment is the first stepping stone towards building a good employee review system.
It’s a known fact that when managers provide continuous feedback to their team members, they are more likely to understand what is required and continue their good performance and make an effort to correct any poor performances.
Real time feedback can help employees understand the difference between hard-work vs. smart work, high priority work vs. low priority work, and hence improve the overall efficiency of the team.
It also helps identify problems and implement solutions in a timely manner – before they blow out of proportion.
Managers can then act as coaches and encourage the desired behavior on a regular basis – without waiting until it’s the end of the year to get a grip of things.
Real time feedback enables you to correct the issues while they are in the initial stages and not wait until they turn into a catastrophic crisis. Research also shows that organization who evaluate their employees on a quarterly basis receive 31% greater returns from their appraisal processes than those who don’t. Well, firms who have a monthly feedback system in place have an even better ROI. Annual appraisals are no longer enough and are no longer a sustainable means to attain organizational goals. There has to be continuity and consistency in feedback – whether good or bad. Only then will employees fully understand their role in the success of your organization.
It’s also a good idea to implement software solutions that help improve the efficiency of your organization. This ensures that your employee evaluation data is available at a glance – anywhere, anytime! You can plan your next move based on this data and make informed decisions for your company and your employees.
If you are looking for a performance management software, contact us and we can discuss your requirements in detail and device the right solution for your business.