The document discusses the decline of traditional annual performance reviews and the rise of a new model of continuous performance development. It notes that most companies find traditional reviews to be an ineffective use of time, and that ratings typically say more about the rater than the employee. The new model emphasizes empowering employees to set goals for each initiative, focusing on strengths, providing ongoing feedback, and giving meaningful recognition to inspire innovation.

1. WHAT WILL THE
PERFORMANCE REVIEW
LOOK LIKE IN 2016?

2. Presented by

3. Click the “tweet” button above to
tweet the information on each slide

4. Performance reviews have been an organizational
staple for decades. Whether through a 1:1 conversation
or written reports, these reviews have helped set
goals and objectives for employees to work towards
and be reviewed on.

5. But the decline of the traditional review is a growing
trend, and for good reasons.
According to a Deloitte University study,
Only 8% of companies report that their performance
management process drives high levels of value,
while 58% said it is not an effective use of time. Today’s
widespread ranking-and-ratings-based performance
management is damaging employee engagement,
alienating high performers and costing managers
valuable time.
SOURCE

6. And research reveals today’s assessments are actually
more reflective of the rater than the ratee.
When the majority of ratings of another person are
based on an idiosyncratic pattern of rating different
people the same way, 61% of a performance rating is
typically a reflection of the rater, not the ratee. And a
mere 21% is actually based on the ratee’s performance.
The more complicated you make the scales and the
model, the more inaccurate the rating gets.
SOURCESOURCE

7. So, what should the performance review of 2016
look like to be more effective? How do you switch
the thinking from “managing” a person’s performance
to “developing” their strengths, providing ongoing
feedback, and giving meaningful recognition that
inspires innovation and great work at all levels?

8. WELCOME TO THE NEW ERA OF
PERFORMANCE DEVELOPMENT:
EMPOWER EMPLOYEES TO SET GOALS PER INITIATIVE
FOCUS ON INDIVIDUAL STRENGTHS
PROVIDE ONGOING FEEDBACK
GIVE MEANINGFUL RECOGNITION

9. While the annual performance review relies on manager
feedback, performance development in 2016 should rely
on real-time reviews of each initiative right after completion.
Through feedback tools, goal-setting apps, and team
communication capabilities, every team member can begin
working towards a set goal and measure progress along
the way without waiting for year end.
1. EMPOWER EMPLOYEES TO SET
SPECIFIC GOALS PER INITIATIVE

10. As organizations are quickly finding out, assessing skills
has also created inconsistent data. Worse, these skill
assessments are hindering employee productivity and
motivation. Instead of time-consuming skill assessments,
managers should look for ways to focus on employees’
strengths and future actions.
2. FOCUS ON INDIVIDUAL STRENGTHS

11. A study by Gallup found that people who use their
strengths every day are six times more likely to be
engaged on the job.
When employees feel that their company cares
and encourages them to make the most of their
strengths, they are more likely to respond with
increased discretionary effort, a stronger work ethic,
and more enthusiasm and commitment.
SOURCESOURCE

12. Research shows that yearly feedback is not enough to
motivate employees—especially if they’re Millennials.
Instead, employers will start to develop systems of frequent
feedback and check-ins, remembering that open lines of
communication build trust and teamwork in the workplace.
3. PROVIDE ONGOING FEEDBACK

13. Donna Morris, VP of people and places at Adobe,
explains her experience with consistent feedback with
performance management. Our check-ins provide a
disciplined framework for establishing expectations,
which is really fundamental…when employees are provided
with continuous, ongoing, genuine feedback, they can
really make an impact and get back to those business
priorities.
SOURCESOURCE

14. Why is recognition critical to employee development? According to
2015 research by Aon Hewitt, 72% of employees value communication
and recognition from their leaders, and 46% report they don’t get
enough. Employees want more feedback on their job performance
and recognition of efforts and achievements from their direct
managers. In fact, employees who get recognized and encouraged
to share ideas and opinions with others are 3x more engaged.
Towers Watson research also finds recognition done well increases
trust, communication, accountability and goal-setting attributes.
4. GIVE MEANINGFUL APPRECIATION
SOURCE

15. The year ahead will see more employers, managers,
and team members focus on appreciating great work,
especially when performance is aligned with company
values such as customer care, innovation, and teamwork.
Organizations that take the extra effort to empower all
employees to create meaningful recognition experiences
will see a boost in engagement, productivity, retention,
and overall great work.
SOURCE

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17. O.C. TANNER AND THE O.C. TANNER INSTITUTE
O.C. Tanner, number 40 on the 2015 FORTUNE 100 Best Companies
to Work For® list, helps organizations create great work environments
by inspiring and appreciating great work. Thousands of clients
globally use the company’s cloud-based technology, tools, awards,
and education services to engage talent, increase performance,
drive goals, and create experiences that fuel the human spirit. Learn
more at octanner.com.
The O.C. Tanner Institute regularly commissions research and provides
a global forum for exchanging ideas about recognition, engagement,
leadership, culture, human values, and sound business principles.

18. REASONS LEADERSHIP
DEVELOPMENT FAILS
4 EMPLOYEE DEVELOPMENT
STRATEGIES FOR YOUR
REMOTE WORKFORCE
7
KEY INSIGHTS FROM
HR TECH 2015
5 Everyday Objects
that are the Result
of Great Work
MYTHS ABOUT GREAT WORK:
AND the Reality of What to Do to
Make it Happen
6
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