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The Benefits of Continuous Performance Review System
Insights From Mettl Company Insights

Good performance reviews have shown to reduce attrition rates and improve productivity. With traditional performance review, there are a host of challenges involved, namely:

No Value Addition: The annual review meetings become more of a formality than a course-correction process. It just happens for the sake of doing it and is usually a mundane, lengthy, and drawn-out process with no meaning of it and no scope for any improvement for the end-user.   

Risk of Biases: What happens with the traditional performance review is the last few months take priority over the entire year. If a person has not been able to perform at an optimum level in the last 2-3 months due to some reasons but had performed very well in the past, there’s the risk of giving birth to biases that the person is not productive or efficient enough. 

Too Late in Time: There's no point of waiting for 6 months or a complete year before acknowledging that there are certain loopholes that need to be addressed. Also, the gaps could have been plugged in time for the employees to make any robust improvement in the time of one year.

No Objectivity: What could be known in 3 months of time could only be known in 12 months of time. In such scenarios, objectivity goes for a toss and tracking of key results, objectives achieved, and marked improvement is lost. This results in a poor performance review that is neither beneficial to the employees nor to the organization.  

That is the reason progressive organizations of the world are moving towards a continuous feedback to improve their processes rather than depending on biannual or annual performance review meetings. Some important tips:

  • For following a continuous performance review system, it’s crucial to set clear-cut objectives streamlined with the short-term and long-term organizational objectives. These key objectives, in turn, must tie back to the overall mission and vision of the company.

  • The performance review must hold true on the SMART pillar-

    • Specific

    • Measurable

    • Actionable

    • Reasonable

    • Timely    

  • Define key results that are essential for an organization’s growth and success and judge the progress of employees against it.

  • Continuously monitoring performance is of the utmost importance to derive any meaningful result from the entire review process. A timeline of conducting successive performance reviews every 1-3 months can work wonders in making necessary course corrections and providing continuous feedback.

  • Not every key objective can be addressed in 3 months of time. Some objectives need a greater length of time to see any marked improvement or change. The frequency of performance reviews will depend largely on which key objectives have to be concentrated upon after what time.

Topics: HR News and Trends

Originally published December 07 2018,updated February 22 2020

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