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Why The Gap, Adobe, and Microsoft Scrapped Yearly Reviews

The management research firm CEB performed a survey among major companies, finding that 95% of managers of were dissatisfied with their employee performance review process. Almost nine out of ten HR heads don’t believe that the information derived from feedback processes yield accurate results.

Major corporations are beginning to respond to the dissatisfaction of their managers and HR specialists, including Microsoft, Adobe and the Gap, all of which have dropped their tradition of yearly employee reviews.

Feedback Fuels Improvement
Performing employee feedback once every year only serves to make employees nervous about whether or not their accomplishments have been noted. Instead of thinking about improving their performance, they’re understandably more worried about how the review will affect their income or job status.

Assuming your company performs feedback reviews to derive the best possible performance from your staff, you’ll want to consider moving to an evaluation system that provides constructive feedback to employees on a more frequent basis.

Bruce Tulgan, author of It’s Okay to Be the Boss: The Step-by-Step Guide to Becoming the Manager Your Employees Need, states that “feedback is much too often given when things are going wrong. I call that ‘bad-news management’ because every time they hear from you, it means something’s gone wrong.”

He believes that feedback should be given under all circumstances, including when things are going well or even just average. This creates a much better relationship between employees and managers. Instead of dreading communication because it means that something’s gone wrong, both sides look forward to the exchange of ideas.

New Tools Make Constant Feedback Possible
The idea of conducting more than one or two employee reviews per year was seen as a drain on resources. This assessment was correct, considering the amount of time and effort it used to take to perform feedback reviews using old processes.

Cloud computing services have made it easy to outsource this type of process, allowing companies to focus on constant improvement of the performance of their employees instead of dealing with complex computer programs.

Rather than give feedback for an entire year’s worth of work, which is impossible, managers, supervisors and employees can benefit from quick performance adjustments on a regular basis to maximize the value of the entire endeavor.

Looking for Employee Review Tool That Really Make a Difference?
360 Degree Feedback is a web-based tool which enables HR users to easily and quickly create, distribute, manage and track employee participation in the review process. Users can see results in real time. HR departments can customize the questions so the survey meets the company’s unique needs.

Take bias out of your employee reviews with 360 Degree Feedback for evaluations that are fair and impartial.

Get Our Free Survey Templates
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