Half of Surveyed HR Professionals Say Their Performance Appraisals are Inaccurate

April 10, 2018 Emily Payne

Within the fast-paced, ever-changing nature of the modern workplace, it’s no surprise that more frequent reviews yield more accurate appraisals. It’s easier to evaluate an employee’s performance in a single quarter than within a year.

The 2018 SHRM/Globoforce Employee Recognition Survey Report found the data to back it up: Peer feedback, more frequent reviews or check-ins, and a supportive feedback environment effectively spur employee growth and development.

Among surveyed HR professionals, only about half say their current performance appraisal process is accurate. With a closer look at the data, we found a trend: HR professionals who conduct semiannual or more frequent reviews are 2.5 times more likely to agree they are an accurate appraisal of employees’ work, compared to those who conduct annual reviews.

Of course, many managers can’t find the time to coordinate reviews with all employees on a more frequent basis. That’s where peer reviews come in.

Organizations relying on more frequent performance reviews are more likely to use peer feedback, either ongoing or intermittently, and 89 percent of surveyed HR leaders agree that ongoing peer feedback and check-ins have a positive impact on their organizations. And when compared to annual reviews with no peer feedback, semi-annual reviews and peer feedback are nearly two times as likely to be perceived as accurate.

Frequency of feedback is also important: Ongoing peer feedback and check-ins are 33 percent more likely to have a somewhat or very positive impact, according to the survey, compared to feedback only used intermittently.

Not ready to ditch the annual performance review? HR leaders can consider adopting frequent peer feedback as a supplement to improve the quality of conversations and employee development over the course of the year, the report adds.

As we saw in finding one of the report, the third-most cited challenge by HR professionals is culture management. With employee growth and development being one of the most important aspects of organizational culture, HR professionals in the modern workplace are pausing to think, is our process uninspiring and antiquated? Or does it come from a place of positivity – setting employees up for success through frequent conversations and collaboration?

The report defines a supportive feedback environment as one that encourages daily informal feedback exchanges – between managers and direct reports and between peers – that are generally positive, high-quality, frequently occurring, from credible sources, and where feedback seeking is encouraged.

The report – conducted in collaboration with the Society for Human Resource Management (SHRM) – explored what constitutes a human workplace by surveying 738 HR leaders in a variety of organizations. In our sixth year conducting the survey, we found that HR leaders across the country are creating supportive feedback environments throughout the year to improve employee engagement, organizational culture, and the employee experience.

To download the full 2018 report, click here.

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