Continuous performance reviews summary. Continuous performance reviews have been becoming more popular over time, as employees and HR leaders prefer them over traditional performance reviews.
So, if you’re an employer looking to keep up with the latest performance management trends or an HR leader looking to improve PM, you’re in luck. We’ve gathered everything you need to know about the benefits of continuous performance reviews. According to our research:
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Only 28% of employees receive meaningful feedback at least once a week.
Another 28% receive feedback a few times a year, and 19% receive feedback once a year or less.
Frequency of employee feedback
Frequency of feedback Share of employees At least once a week 28% A few times per year 28% Once a year or less 19% -
Companies with continuous performance reviews are 39% better at attracting talent.
Further, once these companies acquire the new talent, they’re also 44% better at retaining that talent, leading to reduced turnover and increased productivity.
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85% of workers who have weekly check-ins with managers have higher engagement ratings.
With 28% of employees saying they aren’t receiving feedback often enough to improve, continuous performance reviews are a great way to ensure everyone is able to achieve their best potential in the workplace.
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Companies that implement regular performance feedback have 14.9% less turnover.
That equates to 6 employees leaving the company instead of 7, which might not seem like a lot on paper. However, given the fact that replacing an employee costs a full year’s salary on average, nearly 15% can actually make a big difference financially.
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43% of highly engaged employees receive feedback at least once a week.
Comparably, only 18% of employees with low engagement receive feedback at least once per week.
Performance management FAQ
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What is performance management?
Performance management is the process of enhancing and sustaining employee job performance. Doing so involves utilizing performance assessment tools, offering coaching and guidance, and consistently delivering feedback.
In the past, annual performance reviews were a common method of doing so, but in recent years, many companies and employees have started to favor immediate feedback.
This has led to discussions about how performance management should be done, and new innovations for companies. Ultimately, companies will always need to keep up with new trends and listen to employees in order to have effective performance management.
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Why is performance management important?
Performance management is important because it enables managers to monitor employees and discover who might need further guidance or training. In more detail, here are out top 10 reasons why performance management is important:
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Goal Achievement. PM helps align individual employees with company goals, ensuring that efforts are directed toward strategic priorities.
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Enhanced Productivity. By identifying strengths and areas for improvement, PM enables employees to work more efficiently and effectively.
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Employee Development. PM provides a solid framework for coaching, mentoring, and skill enhancement, contributing to professional growth and career advancement.
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Feedback and Recognition. Regular feedback fosters a culture of communication, enabling employees to understand their contributions and receive recognition for their achievements.
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Motivation. Clear performance expectations motivate employees to strive for goals and higher levels of performance.
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Identification of Issues. PM helps pinpoint problems early, allowing for timely interventions and preventing potential performance-related challenges.
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Data-Driven Decisions. By collecting and analyzing performance data, organizations can make informed decisions about resource allocation, training needs, and process improvements.
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Employee Engagement. Involving employees in the PM process increases their sense of ownership and engagement with their work.
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Accountability. Clearly defined performance metrics and goals create a sense of accountability among employees, fostering a culture of responsibility.
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Continuous Improvement. PM encourages a cycle of continuous improvement by assessing outcomes, identifying gaps, and adapting strategies accordingly.
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What are the elements of performance management?
There are 5 major elements of performance management, including goal setting, monitoring, feedback and coaching, performance appraisal, and rewards and recognition. To learn more about all of these important elements, here they are listed:
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Goal Setting. This element requires clearly specific performance goals that employees should strive to achieve. These goals are aligned with the organization’s objectives and provide employees with a sense of direction.
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Performance Monitoring. Regularly tracking and measuring employee performance against the established goals and expectations. This includes collecting data, assessing progress, and identifying any gaps.
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Feedback and Coaching. Providing continuous feedback to employees about their performance, strengths, areas for improvement, and developmental opportunities. Then, coaching allows for guiding employees toward enhancing their skills and achieving their goals.
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Performance Appraisal. Conducting formal performance reviews or evaluations at specific intervals to assess an employee’s overall performance and provide a comprehensive assessment of their achievements and areas for development.
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Rewards and Recognition. Recognizing and rewarding employees for their exceptional performance, achievements, and contributions. This can include promotions, salary increases, bonuses, or other forms of recognition.
All in all, these elements work in tandem to create successful performance management, and without them, there is often a disconnect between employers and employees.
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Conclusion
Continuous performance reviews come with many benefits. Some of the most prominent include an almost 15% decrease in turnover, more engaged employees, and a higher likelihood of attracting and maintaining talent.
As of 2023, it’s clear that continuous performance reviews are the preferred method of review, both by employees and employers. With that in mind, switching to this method seems like a no-brainer for any company interested in performance management.
References
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HRO – Outperforming Performance Management
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
