As research increasingly calls into question the effectiveness of traditional performance appraisals, some companies have completely redesigned their process to focus on more agile approaches, such as ongoing monitoring rather than just once or twice a year. Moreover, current events may lead to a long-term strengthening of these trends in other companies that have yet to address this issue.
Whether you are planning temporary improvements or permanent changes to your evaluation process, here are some current examples of how global companies are changing their approach to performance evaluation.
1. Google and other consulting firms postpone evaluations
Although Google usually conducts comprehensive evaluations twice a year, it has decided to suspend the process for six months and address more pressing issues instead. This also means, among other things, temporarily suspending the setting of further goals or promotion plans. "While we continue to serve our users, we have new and unexpected demands that require our attention and energy," said Eileen Naughton, vice president of People Operations at Google.
A similar approach has been taken by other companies around the world, such as three leading consulting firms in India: Deloitte India, EY India and PwC India have postponed staff appraisal, as well as promotion and bonuses associated with it. "At PwC India, we have taken active steps to help keep all employees safe and make our organisation more sustainable," said Shyamal Mukherjee, chairman and regional partner, via his LinkedIn account.
2. TMF Group provides flexibility to its global subsidiaries
At present, universal access to performance management may not be possible for companies with offices around the world. TMF Group, which provides accounting, HR administration and capital market support, is adapting its processes to meet the specific needs of all its 80+ offices worldwide.
"The situation varies from office to office," said Angelique Flapper, TMF group program director. "We have offices that are already open and doing business as usual. There are offices COVID-19 has not hit so much, but also some in pandemic centres … So a tailor-made approach was very important ... We didn't want people to feel more stressed or anxious by being given various goals they had to achieve."
Offices that reopen have the opportunity to adopt a more robust approach, including setting market, financial and business goals for employees. Other offices are entitled to take a more flexible approach, which gives employees the opportunity to set targets if they so choose, but without fixed deadlines.
3. Sprinklr and Shapiro Negotiation Institute increase the frequency of reviews and coaching
In the eyes of many companies, formal evaluations are now less important than regular reviews with employees. Managers at the Shapiro Negotiation Institute (SNI) have begun reviewing employees on a weekly basis, and the company has also postponed its regular employee evaluation based on revenue generated.
"In the short term, we are not currently emphasising sales and revenue, but we are monitoring demonstrable leadership skills of our employees that lead to higher sales," said Andres Lares, the company's managing partner.
Sprinklr, an SaaS customer experience management platform, currently conducts 1:1 meetings with employees every six weeks and rates their satisfaction on a scale from 1. Managers and their staff also discuss what would help raise the level and ask them to evaluate their own performance towards achieving their goals and development plan.
4. Facebook gives each employee a positive rating and bonus
In the past, Facebook has advocated biannual performance appraisals. This year, however, the social media giant decided to give each employee the same positive rating "exceeds expectations" for the first half of 2020. At the same time, all employees received a $1,000 bonus to support them in difficult times.
Looking to the future, CEO Mark Zuckerberg also said employees who have positive performance ratings and are "at a certain level within the company" may be able to work remotely permanently if they so choose.
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