5 ways to propel employee performance (and keep it there)

One-third of feedback received during performance reviews curtails employee performance. So, what can we do to ensure we boost, not burden, our teams during review season?

Our We need to talk webinar turned the topic of performance conversations on its head, shaking out what’s working, and here are five key takeaways:

Is performance feedback a hindrance rather than a help?

The way companies typically approach feedback certainly seems to be.

On average, performance reviews take up 210 hours of a manager’s time each year, yet 55% of employees disagree with their review, and 85% consider leaving after a bad appraisal.

In financial terms, this wasted time and resource costs up to $35 million a year.

Most businesses follow an annual review process, typically condensed into a 30 to 60-minute meeting predominantly focused on setting the following year’s targets and KPIs, often neglecting to acknowledge and recognise employees’ efforts over the past 365 days.

This can cause unintended trouble:

• 60% of employees say their goals are either irrelevant or forgotten by their next review
• 67% of employees don’t know what is expected of them at work

Switch from annual to monthly reviews

Research shows that doing shorter, monthly reviews can enhance performance, with 50% of employers adopting the process reporting better outcomes.

The shorter duration of these meetings makes them less burdensome for both managers and employees. It offers more frequent feedback opportunities, helping both parties to keep track of goals and align them throughout the year.

The result? Better productivity and employee engagement.

Five ways to guarantee effective feedback

Feedback in the workplace is crucial for learning and development, yet 52% of employees find getting feedback from their managers either stressful or difficult. And only 26% strongly agree that feedback helps them to perform better.

So, how can companies foster an environment which helps employees thrive from feedback instead of retreating with fear?

• Enhance manager knowledge. Equip managers with a full picture of an individual employee's performance.
• Positive reinforcement. Focus on where people can improve rather than be mired in their flaws. There's a subtle difference.
• Break down tasks. Chunk tasks down into manageable components and provide evidence-based, observable feedback.
• Set challenging goals. Harder-to-achieve goals drive higher levels of output, as they stimulate a desire to surpass existing achievements. Conversely, tasks that are too simple fail to offer a meaningful challenge, leading to stagnation.
• Safeguard self-esteem. When an individual feels their self-esteem is under threat, their output and performance can significantly decline. Instead, create an environment where feedback is constructive and supportive to help individuals grow.

The power of progress

What makes a great workday? Support from your manager? Doing important work? Receiving a financial reward?

Whilst monetary incentives certainly hold importance, and all are contributing factors, research has found that the biggest motivator is progress, with 76% of employees reporting a sense of advancement on their best workdays. Yet surprisingly, only 5% of managers recognise the importance of progress as a major motivator.

When progress is absent, it can lead to a feeling of futility that adversely impacts performance. Therefore, cultivating an environment which encourages progression, whether individually or organisationally, is essential. When employees feel that their efforts are recognised and contributions are acknowledged, it creates a sense of purpose and fulfilment, which can lead to higher job satisfaction and, in turn, increased productivity.

“A bad system will beat a good person every time”

So, are performance reviews a boost or a burden to businesses? Yes, if there is a poor or non-existent system. A study found that businesses perform 65% better than their peers financially if they have certain practices in place. This includes:

• Using performance management systems that cover all managers.
• Aligning managers' goals with the company strategy.
• Reviewing employee performance more than once a year.
• Having a system for identifying high-potential employees.

Take the first step to great performance management

MindGym’s Performance Boost eWorkouts bundle equips your people with a toolbox of digital learning that maximises their performance. Try a free demo of our popular module, ‘Maxing meaning’.