Conducting performance reviews of your financial team is a resource-intensive process. Would that time and effort be better spent elsewhere – perhaps by managing another aspect of your company’s operations? But how do you handle your employees’ need for feedback, encouragement, and direction typically provided by a review?
Let’s take a closer look at whether or not annual reviews are necessary for the financial industry. Some leading companies have actually discontinued the practice. Use these insights to ensure your team is being as efficient as possible.
Managers and Employees Are Dissatisfied with the Review Process
A recent study by CEB Global indicated a surprising 98 percent of surveyed managers are dissatisfied with their current performance review methodology or system. 59 percent of employees queried by the study felt reviews simply weren’t worth their time. With negative opinions such as these, why do companies go through the effort?
Jim Barnett, CEO of Glint, makers of a Cloud-based employee engagement application, commented on a new trend against performance reviews. “We’re in the early stages of a revolution. A lot of companies are doing this … and I think over the next two years we’re going to see a profound shift in this area. Progressive HR leaders are realizing that they need continuous, real-time feedback and solutions,” said Barnett.
Leading Organizations Are Moving Towards Real-Time Employee Feedback Systems
Many top companies in the business world – most notably GE, Adobe, Netflix, and Accenture – have discontinued the practice of annual reviews. Other companies in the financial sector are also following suit. Many of these firms leverage real-time feedback applications in place of a formalized review process.
For feedback to be valuable it needs to be given in a timely manner. Criticism received 10 months late at an annual review isn’t helpful to an employee, making it a wasted effort for the manager or company as well. Additionally, the CEB study noted that employee performance rankings rarely correlate to a company’s overall performance.
When you factor in the resources spent on a formal review process, it’s not surprising that businesses of all sizes are moving in a different direction. Maybe it’s now time to consider doing away with the annual review at your financial organization and using an employee feedback system in its place?
If you need additional insights and advice on building a great team at your organization, talk to the experts at Venteon. As one of the top financial staffing agencies in Ohio and Michigan, we also provide a rich supply of talented candidates for your perusal. Schedule a meeting with us at your earliest convenience.