PERFORMANCE FEEDBACK – WHY BOTHER?
As year-end nears, many businesses are engaged in employee performance review processes. The approach differs – some conduct formal reviews tied to job descriptions and/or defined performance objectives; some solicit 360 feedback from peers, clients and direct reports; and some provide informal feedback reflecting on employees’ progress in their roles, accomplishments, or areas for improvement. Some businesses do not engage in any such process. Why are annual reviews a recommended HR best practice? And what pitfalls should you consider when providing performance feedback?
Let’s consider Joe, age 49, who works for Small Enterprise. Small Enterprise began with five employees in 2008, but business picked up substantially 2 years ago. Presently, Small Enterprise has 50 employees and is poised for significant expansion in the coming year, particularly in Production. Joe heads the Production Team and has been with Small Enterprise since shortly after it was founded. While Joe is pleasant and knows the mechanics of the function, senior management does not believe he has the drive and determination to oversee Production in its further expansion. They have identified a talented manager from outside, 13 years’ junior to Joe, with whom they would like to replace him.