Annual performance reviews are on their way out and many large companies are shifting their ways to measure employee benchmarks in relation to their goals. In February, IBM launched an app, Checkpoint, for employees to set shorter-term goals and have managers review them and give them feedback at least quarterly. Even General Electric, which once prophesized the annual performance review, is walking away from it. Previously known for ranking employees each year and firing the bottom 10 percent (that system was ended about a decade ago), it’s now ending annual performance reviews and legacy performance management system in favor of more frequent feedback via an app.
IBM and General Electric may be on the right track: 45 percent of HR leaders do not think annual performance reviews are an accurate appraisal for employee’s work and 42 percent do not think employees are rewarded according to their job performance according to a SHRM/Globoforce survey. Frequent feedback and employee recognition programs are two ways for organizations to meet challenges.