Unveiling the Hidden Cost of Traditional Performance Reviews

Published on
Feb 27, 2023
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The Real-Time Investment in Annual Reviews

Performance reviews, a staple in organizational management, are notoriously time-intensive. Research from CEB, now Gartner, reveals that managers, on their part, dedicate an average of 210 hours each year to performance management activities. This time commitment equates to more than five full work weeks, a substantial portion of the year that could otherwise be spent on productive tasks​​​​​​.

"Performance reviews in most organizations are so bad they do more harm than good." - From Gallup's More Harm Than Good: The Truth About Performance Reviews

The Cost Beyond Hours

However, it's not just about the time spent. Traditional performance reviews often fall short in effectiveness. Shockingly, Deloitte's research indicates that only 6% of companies believe performance reviews are worth their time, and a mere 2% of HR executives find yearly evaluations useful.

The dissatisfaction is not limited to the HR department; 80% of workers express discontent with their performance reviews, hinting at a widespread desire for a more meaningful and less time-consuming approach​​.

Shockingly, sometime the very act of conducting traditional annual reviews can actually make performance worse 1/3 of the time.

Streamlining for Efficiency and Productivity

The Power of Time Reclaimed

Imagine if we could condense the review process from hours to minutes without sacrificing quality. Streamlining through smart, AI-driven systems like WorkStory can drastically reduce the time spent.

This reclaimed time translates directly into enhanced productivity, as managers and employees can focus on what truly moves the needle: growth and development.

A Ripple Effect on the Organization

The benefits of streamlining extend beyond time saved. It's about the momentum maintained, the creativity unleashed, and the strategic focus sharpened. When the burden of cumbersome reviews is lifted, companies can experience a tangible shift in their operational efficiency and workplace morale.

Rethinking Effectiveness and Employee Retention

Questioning the Status Quo

While traditional reviews have been the norm, their effectiveness is under scrutiny. Often, they offer a retrospective view, which might not fully capture an employee's performance or potential. This limited perspective can lead to dissatisfaction, miscommunication, and ultimately, turnover.

Combatting employee turnover requires more than just a streamlined process; it necessitates a shift in the review paradigm. Transitioning to a model of continuous, real-time feedback ensures that recognition and constructive criticism are timely and relevant.

This approach not only enhances the accuracy of performance assessments but also fosters a culture of ongoing development and recognition.

Redefining Effectiveness

Making the process more effective isn't just about speed.

An effective review process is one that empowers employees, guides their development, and aligns their goals with the organization's objectives.

It's a process that's continuous and deeply integrated into the daily workflow.

A New Era of Performance Management

As we reflect on the traditional costs of performance reviews in terms of time, money, and morale, it's clear that a transformation is in order.

By embracing solutions that streamline the review process and foster a culture of continuous feedback, organizations can unlock their true potential.

It's time to move beyond the annual review and step into a new era of performance management.

WorkStory Performance Review Process Webinar
Hosted by Matthew Meadows, Josh Smith
In this 20-minute overview and product demo, Cofounder and CEO, Matt Meadows will show you how you can use WorkStory to streamline your performance review process — in just minutes — while significantly increasing the amount of feedback your team members want/need. You’ll learn why hundreds of teams are using WorkStory to operate their performance management process and how they’re getting tons of time and energy back because of it.
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WorkStory Performance Review Process Webinar

Our Cofounder and CEO, Matt, will guide you through WorkStory to show you:
The key features that make the WorkStory platform different from others; it's like nothing you've seen before
How to set up your review process quickly, including customizing your questions, setting up goals, and the review relationships for your team
How companies are using WorkStory's "One-Click" review process to transform and scale their performance reviews so that team members can develop their skills throughout the year

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