Time to Review the Performance Review?

By Cynthia Kong on December 12, 2018 at 8:17am


The last time companies updated their performance appraisal process:

Within the past year 29%
1-2 years ago 22%
3-4 years ago 24%
5 years ago or more 6%
Never 8%

No performance appraisal process: 11%

How companies have changed the performance appraisal process:

Made it shorter 39%
Increased frequency of feedback 36%
Added rating scales 27%
Added peer/360-degree feedback 25%
Separated it from compensation discussions 20%
Eliminated rating scales 13%
Made it longer 8%
Decreased frequency of feedback 5%
Eliminated peer/360-degree feedback
Other 3%

(Respondents whose company has changed its performance appraisal process. Multiple responses were permitted.)

How often formal performance appraisals are conducted:

9% Never
10% Quarterly
14% As necessary
28% Twice a year
40% Once a year

How effective performance appraisals are in improving employee performance:

3% Not effective at all
12% Not very effective
24% Very effective
62% Somewhat effective

(Respondents whose company conducts formal performance appraisals.)

The greatest benefit of conducting performance appraisals:

36% Motivates employee by focusing on achievements and goals
19% Identifies changes and resources needed
19% Helps to make decisions about merit increases and bonuses
14% Helps address poor performance in formal way
12% Helps to make decisions about promotions

Source: OfficeTeam survey of 308 HR managers in the United States

Some responses do not total 100 percent due to rounding.

© 2018 OfficeTeam. A Robert Half Company. An Equal Opportunity Employer M/F/Disability/Veterans.

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