When it comes to retaining top talent, companies are always looking for an edge.
While perks like free snacks and unlimited PTO might seem appealing, research shows that one of the most effective ways to keep employees engaged and satisfied is through regular performance reviews.
In this article, we'll explore how performance reviews can impact employee retention, the pitfalls of traditional review processes, and the benefits of an automated review system.
The connection between performance reviews and retention might not seem obvious at first glance.
After all, a review is just a conversation between a manager and employee, right?
But as it turns out, providing consistent, quality feedback is one of the most effective ways to keep employees motivated and invested in their work.
When employees feel seen and heard, they're more likely to stay with a company and contribute to its success.
Despite the benefits of performance reviews, traditional review processes can be a headache for HR teams and employees alike.
Annual or biannual reviews can feel like a chore, and when feedback is infrequent, it's hard to make meaningful changes. Managers may also be hesitant to give critical feedback, worried about hurting their employees' feelings.
This can lead to a lack of growth and stagnant job satisfaction, which can ultimately drive employees to look for opportunities elsewhere.
An automated performance review process, on the other hand, can provide a wealth of benefits for companies looking to improve retention.
By automating the review process, employees can receive feedback more frequently and from a wider variety of sources (360 reviews perhaps). This can help employees get a more well-rounded view of their performance, and can give them the tools they need to grow and improve.
In addition, an automated system can provide a more objective assessment of performance, which can help to avoid bias and promote fairness.
This can also help to address issues before they become major problems, and can help managers to intervene when an employee may be at risk of leaving the company.
As Bill Conerly, Senior Contributor to Forbes, wrote...
A highly productive employee is highly engaged in the work and highly likely to stay with the company. That person knows what the boss thinks, both the good and the bad. The performance review facilitates that process, though it’s not the only means of doing so.
Implementing an automated performance review process may seem daunting, but it doesn't have to be.
HR managers and executives can start by defining their goals for the process and choosing a software solution that fits their needs.
It's also important to train managers and employees on how to use the system, and to set clear expectations for the review process.
Finally, companies should monitor the process and be willing to make changes as necessary to improve the process.
Retaining top talent is a key goal for any growing company.
While there are many strategies companies can use to achieve this goal, regular performance reviews stand out as one of the most effective.
By providing consistent, quality feedback to employees, companies can help to promote growth and engagement, and avoid the pitfalls of stagnant job satisfaction.
An automated performance review process, such as WorkStory, can provide even more benefits by giving employees a more well-rounded view of their performance and helping to address issues before they become major problems.
If you're interested in implementing an automated performance review process at your company, we're happy to help you get started. Contact us today to learn more!
