-- Nearly Half Say Goals Set During Review Not
Relevant a Year Later --
-- Nearly a Third Say Reviews Have No Impact or
Negative Impact on Performance --
A new survey of professionals by Korn Ferry (NYSE: KFY) shows
that while significant amounts of time and energy are spent on
annual performance reviews, they should not be relied upon as the
key way to measure employee effectiveness.
The vast majority of professionals surveyed (87 percent) say
they have an annual performance review with their boss, and nearly
a third (29 percent) say they spend seven or more hours preparing
for the review.
However, nearly all (96 percent) say real-time feedback and
ongoing performance discussions with their bosses are more
effective than an annual review, and nearly half (46 percent) say
that the goals they set in their reviews are no longer applicable a
year later when they sit down to measure performance.
“Organizations realize that managing business performance is a
very dynamic process, so having a once-per-year meeting that hopes
to both evaluate and improve performance is a tall ask,” said Korn
Ferry Senior Client Partner Katie Lemaire. “It is still critical
that employees receive regular feedback to understand how they can
continually improve.”
Nearly a third (30 percent) of respondents say annual reviews
have no impact or a negative impact on their performance, and 43
percent say reviews had no impact or were unhelpful at helping them
understand what to do more of or differently to improve future
performance.
While respondents indicate they prefer ongoing feedback to
annual reviews alone, they did offer some positive thoughts on
portions of the annual review process. Ninety-two percent say 360
feedback from bosses, colleagues, direct reports and clients is
useful, with 48 percent saying 360 reviews are extremely
useful.
More than two-thirds (68 percent) say they look forward to their
annual reviews, and 71 percent say it is fair to base annual
compensation increases on the result of the annual review.
“When approached effectively, an annual review can be a positive
tool in helping increase performance, but it shouldn’t be the only
way success is measured,” said Lemaire. “Regular feedback can help
employees course correct in real time and can help them adjust as
business needs change.”
About the Survey – The Korn Ferry survey was conducted in
November 2018 and garnered 2,151 responses. Due to rounding,
percentages may not equal 100.
Survey Responses:
Do you have an annual performance
review with your boss?
Yes 87 percent No 13 percent
How effective is a performance review
at improving your professional performance?
Very effective 23 percent Somewhat effective 47 percent No impact
20 percent Somewhat ineffective 6 percent Very ineffective 4
percent
Do you agree that all of the goals you
established during your annual performance review are still
relevant a year later when you analyze your progress?
Yes 54 percent No 46 percent
Do you believe it is fair to base
annual compensation increases on the results of your annual
review?
Yes 71 percent No 29 percent
Do you think performance reviews should
be conducted just once a year?
Yes 16 percent No 84 percent
What’s more effective, an annual review
or real-time feedback and periodic performance discussions with
your boss?
Annual review 4 percent Real-time feedback/periodic performance
discussions 96 percent
How useful is 360 review feedback
(reviews from your peers, direct reports, clients, etc.)?
Extremely useful 48 percent Somewhat useful 44 percent No impact 2
percent Somewhat unhelpful 3 percent Not helpful at all 3 percent
How useful is a performance review in
helping you understand what to do more of, or differently, to
improve your future performance?
Extremely useful 30 percent Somewhat useful 27 percent No impact 17
percent Somewhat unhelpful 14 percent Not helpful at all 12 percent
Do you look forward to your performance
reviews?
Yes 68 percent No 32 percent
Taking into account the following
steps: developing goals, reviewing them with your manager, and
finalizing them, approximately how many hours do you spend on goal
setting each year?
Less than an hour 12 percent 1-3 hours 30 percent 4-6 hours 29
percent More than 7 hours 29 percent
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We help
clients synchronize strategy and talent to drive superior
performance. We work with organizations to design their structures,
roles, and responsibilities. We help them hire the right people to
bring their strategy to life. And we advise them on how to reward,
develop, and motivate their people.
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version on businesswire.com: https://www.businesswire.com/news/home/20181129005134/en/
Tracy Kurschner612.309.3957Tracy.Kurschner@kornferry.com
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