The effectiveness of performance reviews leaves much to be desired, according to the latest BLR Performance Management Survey of human resources professionals. More than three-fourths of respondents give their employer’s performance reviews a “C” or lower.
More than 1,480 HR professionals participated in the study, which was conducted by Business & Legal Resources (BLR) in Brentwood, Tenn. Most companies (92 percent) conduct regular performance appraisals. Of that number, 73 review employees annually, while only 13 percent do so every six months.
Half of HR professionals said their organization uses these evaluations to determine pay increases. The most common reason cited for not linking the two is to focus on employee performance instead of the amount of a raise.
The specific role of the HR department in employee evaluations varies among businesses:
• 60 percent provide informal coaching for evaluators.
• 57 percent file the paperwork.
• 55 percent review all evaluations.
• 51 percent provide formal training for evaluators.
The employee performance report card from HR personnel breaks down as follows:
• A – Excellent, 2 percent
• B – Above average, 22 percent
• C – Average, 51 percent
• D – Below average, 23 percent
• F – Terrible, 2 percent