If done effectively, performance reviews help managers to align and track measurable goals, create ongoing feedback loops for coaching, and boost engagement through recognition. In other words, managing employee performance is basically how work gets done and goals are accomplished.
But we are all busy, and sometimes do not invest the time needed to understand performance reviews and how to use them effectively. This can lead to detrimental organizational outcomes, some of which are shown below.
1. Unclear Reward Systems
Due to poor communication, employees may not understand the link between their behaviors and results, and how those translate into performance ratings. Likewise, employees may not comprehend how their ratings translate into rewards. The absence of clear links makes it unlikely employees will be motivated to perform at a high level. (more…)
Employee engagement is the extent to which employees feel passionate about their jobs, are committed to the organization, and put discretionary effort into their work.