An article on Performance Reviews in HRMonthly this week caught my attention as it discussed a major shift in a large company’s approach to performance reviews. I had to respond and have precised as follows:
“We are constantly working with businesses in the performance management field and have developed an approach and philosophy which has also impacted positively on our recruitment outcomes for our clients. I think this company was right to move away from their old process and the big wins for them are focusing on the six monthly conversations and also the twice weekly check ins. Forced distribution doesn’t help a business, and when remuneration reviews or bonuses are attached so directly to ratings because there is only so much money to go around, then the credibility of ratings is unavoidably compromised.”
In general I think HR often falls short of a CEO’s expectations because it struggles to articulate commercial outcomes. The HR Manager identifies a new way for performance reviews but speaks little about commercial outcomes. To read this full blog post by Andrew Thoseby from the Executive Recruitment Firm, 1st Executive visit Performance reviews need extreme makeover?
