Are Your Performance Reviews like an Annual Physical?

I don’t know anyone who looks forward to their annual physical. There is very little about the process that exudes positivity. Nearly all of us know that  we could have eaten better, exercised more or paid better attention to our health. Even those in the best of health dread the thought that this might be the year that something “serious” may be found. The potential “big-ticket” items overwhelm the progress that may have occurred at other points in the year. The process can also a bit too personal, requiring you to expose more in a single sitting than you care to discuss.

When we are young we tend to simply avoid these events altogether. We assume that we are fairly healthy. Any minor issues can be worked out before we age. We feel good most of the time and have fairly good reasons for those times we don’t. What can a doctor tell us that we don’t already know, or that we’d even care about?

Performance reviews for young employees can be the same. The immediacy of life and the general feeling, and reality, of rapid ascent create less importance for what others think on a once-a-year basis. You have a job, but you know it isn’t likely to be your career. You plan to deal with any problems that may pop-up on an as-needed basis. Nothing lasts forever.

As we get older we start paying more attention. There are mandatory tests based on who and what you are doing. The low-level risks that were built when you were young become high-level risks or actual issues as the problems build over time. The rapid ascent of an early job gives way to the plateaus, jumps and starts of a real career. Some of the bad habits of your youth have simply become part of who you are. You take your medication and keep on going.

Imagine if you had access to your health profile at your fingertips. Imagine if your recent decisions could be quickly analyzed for potential harm and a correction plan laid-out prior to real issues arising. What if you had a medical professional who could answer questions on the fly and point out the best choice to make before you made it?

Whether you were young or old, the process would be more useful. When you’re young, this type of review would fuel a much faster rise and would allow you to make more intelligent decisions about the foundation for your future career. When you are not so young, this type of process could help avoid career-ending or limiting decisions and ensure that you continue to evolve when paths might otherwise flatten.

In both scenarios, the annual review seems ineffective when compared to more frequent or even ad-hoc reviews. So, why do we expect our annual reviews to be effective in the workplace, when they do not work in our private lives?

We received grades and progress reports on regular basis as children. That seemed to work. Science confirms that recognizing someone for good or poor results when the results are measured is the best way to link rewards with effort and achievement. A performance review should be just that…a review. If it is to have any real power to motivate or modify behavior it must be linked to lessons learned throughout the year, not just to foggy memories of months gone by.

Make sure your 3-4% COLA increase and limited incentive budgets mean something this year by enhancing your process for improving your performance review. Imagine if there were no surprises other than the dollar amount. Imagine if your good employees looked forward to their reviews and your less than good knew what to expect in advance. It would improve the quality of the process while reducing the angst and preparation for something that virtually no one currently enjoys.

May you have a pleasant and high-performing 2012!

Dan Walter is the President and CEO of Performensation an independent compensation consultant focused on the needs of small and mid-sized public and private companies. Dan’s unique perspective and expertise includes equity compensation, executive compensation, performance-based pay and talent management issues. Dan is a co-author of “The Decision Makers Guide to Equity Compensation” and “Beyond Stock Options.” Dan is on the board of the National Center for Employee Ownership, a partner in the ShareComp virtual conferences and the founder of Equity Compensation Experts a free networking group. Dan is frequently requested as a dynamic and humorous speaker covering compensation and motivation topics. Connect with him on LinkedIn or follow him on Twitter @Performensation and @SayOnPay

Comments

[Adoption Services]

Its very informative and interesting article.all the points are very useful. Simple but very effective writing. Thanks for sharing such a nice post.

[Laura Schroeder]

Great analogy - an annual performance review is exactly like an annual physical exam. Without regular performance feedback it's a bit like smoking and eating junk food all year then going to the doctor for cholesterol pills and an inhaler. On the other hand, combined with regular feedback (or diet and exercise, as the case may be) it's a useful checkpoint.