Are Employee Performance Reviews Effective?
The Annual Employee Performance Review should be a thing of the past. Performances should be gauged by comparing the Actual and Targeted Budgets for Company Divisions, and how employees in those business units contributed or hindered the Company’s Budget. As a Business Consultant and Entrepreneur with over 20 years experience working with different corporate cultures, I think an Employee’s Performance should be examined as it contributes to the company’s bottom-line profits. Shouldn’t Performance Systems be about a Company’s Profitability and an Individual’s Growth? Of course it should be. Performance Reviews ought to be part of a Company’s Compensation Structure to achieve better subordinate-manager relationships and common-goal-teamwork toward achieving a Company’s Strategic Goals. Let’s take this a step further to see its real benefit. Doesn’t Performance have a lot to do with a company’s Compensation Strategy, contributing significantly to the bottom line? Well, I say, everything!