It’s Time for a Change When it Comes to Employee Reviews

Times are changing, and with it, the way we conduct business. Many of us who have spent our careers in various fields have become accustomed to annual or semi-annual employee reviews. In these reviews an employee is called into their supervisor’s office and then are told they are doing a good job or need to improve. Oftentimes these reviews lack substance and in the post-pandemic era, as Millennials and Gen Zers rise in the workforce, these traditional reviews are proving inadequate. The younger generation seeks more guidance and feedback to propel their career growth.

Meanwhile, countless businesses remain stuck in their old ways, failing to adapt, and consequently losing valuable team members. A Gallup poll reveals that less than 9% of employees are content with the current review system. Both workers and managers recognize the need for a change in how we gauge the success of our employees.

A popular movement aims to transition to a numbers-driven system with measurable, data-backed results. However, this approach poses challenges, as not every role can be quantified with numbers. While it makes sense for salespeople, how do we evaluate the performance of positions like receptionists or office managers, which are not directly tied to numerical outcomes?

An alternative approach, which has proven successful in many cases, involves setting goals collaboratively with employees. Together, we establish quarterly and yearly objectives for them to strive towards. Their performance review then revolves around the attainment of these goals. Although there are still roles where setting measurable targets is difficult, there is usually something an employee can aspire to. With a clear goal in mind, they can more easily reach significant milestones, facilitating a smoother year-end review process.

Ultimately, every company and employee is unique, requiring a review system tailored to their specific needs. Completely discarding reviews altogether has been shown to result in higher turnover rates and reduced employee satisfaction. Particularly for millennials and Gen Z, employees yearn to understand how they are faring, and the absence of feedback can cause anxiety, ultimately leading them to seek new opportunities elsewhere.

If you are interested in exploring alternative review methods for your team, please don’t hesitate to contact us. We are delighted to assist you in propelling your company forward.


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