TRENDS IN ELIMINATING OR CHANGING PERFORMANCE APPRAISALS

There seems to be a trend developing among many employers of eliminating annual performance reviews, and instead relying on more constant feedback.  Kiplinger reports that some 6% of Fortune 500 employers have recently eliminated the process and that many more are likely to follow.  The theory is that ongoing feedback on a quarterly, monthly or even weekly basis is more effective, and also saves time and money.  Many management personnel dread the annual performance review, and many reviews tend to be the same for everyone or have the "halo effect," in which everyone is rated average or better.  Such inflated reviews can actually make it more difficult for an employer should an employee be terminated and cite his favorable review as evidence of employment discrimination.

Some employers are moving toward systems in which supervisors keep performance logs for their subordinates, containing notes on performance both good and bad on a weekly or monthly basis.  With such specific information, a supervisor then discusses the problem in concrete terms with the employee when the issue arises.