Employees’ annual performance reviews are increasingly becoming a thing of the past, as top firms are shifting away from the traditional method to a “regular feedback”, says a survey.
According to a study by the Top Employers Institute published on Monday, employers are shifting away from annual performance reviews and instead moving towards more regular feedback.
“We are definitely on the verge of a paradigm shift in the way we look at Performance Management,” the Top Employers Institute CEO David Plink said adding performance management has evolved from an annual event with rigid objectives to a transparent process of continuous dialogue.
The report noted that continuous feedback is replacing annual performance reviews as top performing employers no longer rate employees, but instead provide coaching and development opportunities.
“We see that by changing the way we are measuring performance, we can change attitudes of employees towards looking for opportunities to develop a career out of a longer-term relationship with the same employer,” Dimension Data India head – people & culture Ulhas Aher said.
The survey further noted that the overall objectives of performance management are changing as there is a weakening link between performance management and compensation.
Only 10 per cent of respondents believe the main objective of the annual performance review is to provide a basis for salary increase.
The ‘Performance Management Report’ published by the Top Employers Institute was based on a global HR Best Practices Survey among 600 companies in 99 countries.