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A Personal Example of a Performance Review Gone Bad
In the most recent blog, Is it Time to Fire Your Performance Review?, Tim Sieck, Organizational Development expert and Skywalk Group Partner, suggests that the standard HR performance review process is outdated and not helpful. In fact, it frequently does more harm than good.
Let’s share an example that has recently happened to Steve.
Steve works for a large company. He has been there just over three years. For two and half years, Steve had one manager. During those two and a half years, his performance reviews said things like:
- Steve is a thought leader in the company.
- Steve is a team player and gets the job done.
- Steve uses creativity to solve problems and drive the growth of his category.
During those two and half years, Steve loved his job. He looked forward to going to work everyday and consistently gave 110%.
About six months ago, Steve’s previous manager moved on to a different position in the company and a new manager took his place. Then came mid-year review time with his new manager. This time Steve’s performance review, only six months later, was dramatically different. Now his review said things like:
- Steve needs to push himself harder to be a leader.
- Steve needs to improve his relationships with team members.
- Steve needs to improve his problem solving skills.
As you may imagine, the information delivered in Steve’s most recent performance review is causing one thing to change. He is now looking for another job. In this situation, there are several things that could have been done differently:
- Set and communicate clear expectations. The new manager should have clearly communicated his goals and expectations to Steve immediately and consistently upon taking his new role.
- Provide regular feedback. The new manager should have provided regular performance feedback to Steve based on the new expectations, rather than waiting for the mid-year review.
- Manage up. Steve likely could have done a better job of communicating and managing up with his new boss.
- Resolve conflicts. Having the skills to effectively resolve conflicts in the workplace is critical. In this situation, it truly seems to be more of a personality conflict than a true performance-related issue.
The impact of this situation is far more costly than what most people would like to believe:
- Turnover costs. Steve will very likely be leaving the company soon. He is in a high-level position earning approximately $95,000/ year. There will be potential replacement search costs, training costs, downtime, etc.
- Reputation costs. Employees that leave companies because of bad managers will spread that word like wildfire around their networks. In these days of having an instant voice to thousands immediately through social networking, an unhappy employee can make future recruiting difficult and even turn potential customers away.
- The cost of doing nothing to fix the problem. Unfortunately, Steve’s manager was not equipped with the right skill set to be an effective leader. Unless he can change his own behavior as a manager, the company will continue to pay for his poor performance as a leader.
Skywalk Group has been collecting anecdotal data from employees and companies regarding the amount of turnover that occurs in organizations following the completion of performance review process. It is our belief, as mentioned initially, that the standard HR performance review process actually has an adverse impact on many employees and that frequently, it may be the final driving factor which cause an employee to resign. Has this ever happened to you? We would love to hear your story too. And good luck to Steve with his job search!
Did you find this article helpful? You may also like the following articles:
Office Email Etiquette: What is Your Response Time?
Appropriate Interview Thank You Etiquette
When Employee Discipline Backfires
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