At their best, performance reviews are a integrated part of the feedback and coaching you’re already performing for your direct reports. They can also serve to generate alignment , along a career ladder and help with that area of development. At the worst, performance, reviews, entrenched, systematic flaws, and biases while wasting a terrific amount of time. Aa poorly implemented review system might also create perverse Incentives for the direct report. The productivity of the review system is more related to the existing coaching and feedback systems already having to direct reports rather than whatever arbitrary system, a HR department hands down to you. Therefore, you should be thinking about how to associate retro 14 way that I lines with your existing systems while also keeping in mind what you think will be most productive for your team.
Hazards in Performance Reviews
- The rubric system that is prescribed by HR may not align with the specifics of your team
- Perverse incentives may arise, what is needed for the individual to get a good performance review may not align with what the company or investors need1.
- The periodicity of reviews can encourage risk taking the farther out the review is and conservatism the closer it is to get a “win”2
1. Beck, K. Ratings as Incentives. Geek Incentives (2021).
2. Beck, K. Performance Review Incentives. Geek Incentives (2022).