At the end of the year, you may have planned 1:1 discussions with your colleagues to assess the 2024 performance and provide bonuses or salary increases. However, such evaluations are often perceived as stressful and unnecessary, both by employees and managers. According to a Gallup study, only 14% of employees feel that their evaluations motivate them to improve their performance. Moreover, 95% of managers say they are dissatisfied with how these evaluations are conducted, according to a Deloitte report.
Nevertheless, annual evaluations present a valuable opportunity to align expectations, provide constructive feedback, and encourage professional development. Transforming this process into a pleasant experience is possible with a few simple but effective adjustments.
START WITH A CHANGE IN PERSPECTIVE
The first step in transforming annual evaluations is to shift the team’s mindset about them. Instead of being seen as judgmental, they should become a constructive conversation.
Solutions:
- Change the language used during discussions: instead of asking “Why didn’t you meet the target?”, ask “What resources would have helped you achieve your goals?”
- Promote transparency: Communicate the purpose of the evaluation and the criteria being used in advance.
- Focus on development: Replace criticism with solution- and opportunity-oriented feedback.
- Focus on the future: Emphasize how individuals can succeed in the coming year, not just their past performance.
PROVIDE CONSTANT FEEDBACK, NOT JUST ANNUAL
When team members receive feedback only once a year, it tends to be overwhelming or irrelevant. Studies show that 72% of employees prefer regular feedback, and organizations that provide this type of feedback have 14% better talent retention compared to those that don’t. Approximately 90% of companies that adopt continuous feedback report an increase in employee engagement, according to Harvard Business Review.
Solutions:
- Introduce monthly or quarterly mini-evaluations.
- Use digital tools like 15Five, Lattice, or Kudos to provide quick and ongoing feedback.
TURN THE EVALUATION INTO A TWO-WAY CONVERSATION
Evaluations are often perceived as a monologue by the manager. This can lead to a lack of engagement from the employee. PwC studies show that 60% of employees feel their voice is not heard during the evaluation process, while a study by the Society for Human Resource Management (SHRM) shows that teams actively involved in the evaluation process have a retention rate 20% higher.
Solutions:
- Use active listening techniques, such as open-ended questions: “How do you feel you have developed this year?” or “What challenges did you face and how did you overcome them?”
- Encourage self-assessment: Invite colleagues to complete a report about their achievements before the evaluation. This helps align expectations and provides a starting point for the discussion.
REPLACE OVERALL SCORES WITH STORIES
Rigid rankings can generate anxiety. Instead, narratives about progress are much more effective. Studies show that 92% of employees respond better to specific examples than to numerical ratings.
Solutions:
- Personalized examples: Describe specific situations where the employee excelled.
- Public recognition: Offer praise in front of the team to boost confidence.
ADOPT A HYBRID EVALUATION SYSTEM
Traditional evaluations are based on a strict hierarchy: the manager provides feedback to the employee. In contrast, a hybrid model, which includes feedback from colleagues, clients, and even self-assessments, can provide a more complete and balanced picture.
Solutions:
360° Feedback: Incorporates opinions from colleagues. This model is used by companies like Microsoft and Google to create a transparent culture. Integrate client feedback, especially if employees work directly with them.
INTEGRATE TECHNOLOGY TO SIMPLIFY THE PROCESS
Modern digital platforms can completely transform the evaluation experience. According to a study by Gartner, using technology in performance evaluations can reduce the time required for the process by up to 40% and increase the accuracy of results by 30%.
Solutions:
Continuous feedback platforms: Apps like 15Five or Lattice facilitate ongoing conversations between managers and teams. Custom dashboards: Provide clear performance data, saving time and reducing ambiguity.
PERSONALIZE THE EVALUATION PROCESS
Another reason why evaluations are perceived negatively is that they are not personalized. A study conducted by Gartner shows that employees are 4.6 times more likely to improve their performance when they receive specific feedback.
Solutions:
- Create personalized development plans for each employee.
- Highlight each person’s specific achievements and avoid comparisons with colleagues.
BE TRANSPARENT ABOUT EVALUATION CRITERIA
A study by the Society for Human Resource Management (SHRM) shows that 48% of employees believe their evaluations are unfair because the evaluation criteria are unclear.
Solutions:
- Communicate the objectives and criteria on which employees will be evaluated in advance.
- Use measurable, clear KPIs that are aligned with the organization’s goals.
RECOGNITION AND REWARDS ARE ESSENTIAL
According to a study conducted by Achievers, 69% of employees would work harder if they felt their efforts were recognized, and according to a Glassdoor report, employees who feel their work is appreciated are 53% more likely to stay with the company.
Solutions:
- Introduce a segment for recognizing achievements during performance evaluations.
- Offer tangible rewards such as salary increases, bonuses, or additional days off to show that the organization values employees’ contributions.
CREATE A RELAXED ATMOSPHERE
The environment in which the evaluation takes place can significantly influence the employee’s mood. If the discussion occurs in a formal and tense office, the employee will be less open.
Solutions:
- Choose informal locations for the discussion, such as a café or restaurant.
- Schedule the evaluation at a time of day when the employee is well-rested.
Year-end evaluations should not be just another task to check off or a negative experience for either leaders or employees. By changing the approach and using interactive methods, this process can become an opportunity for growth and strengthening team relationships. Additionally, with a personalized approach focused on colleagues’ expectations, transparency, and recognition of achievements, evaluations can significantly contribute to increasing employee retention and satisfaction.
Sources:
- Gallup, State of the Global Workplace Report (2023)
- Gartner, Performance Management and Employee Engagement Study (2022)
- Harvard Business Review, Continuous Feedback and Employee Retention (2023)
- LinkedIn Learning, Empathy in Leadership (2022)
- Glassdoor, Employee Satisfaction Insights (2023)
- Society for Human Resource Management (SHRM), Annual Performance Reviews Analysis (2022)
- Bersin by Deloitte, Reinventing Performance Management (2023)