How performance reviews are broken

- [Instructor] This is an audio course. Thank you for listening. - [Interviewer] Performance Reviews. That is a pain point for a lot of people. Can you orient us maybe to what's current practice in most organizations with performance reviews and how well is that working for us? - [Interviewee] Yes, it's one of those eternal pain points. What's really interesting is if you look at organizational research, in very few circumstances does management and employees agree on certain things. You talk about engagement levels, transparency, you name it. There often tends to be a disconnect between leadership and employees. And yet for performance reviews, (laughs) this is one of those areas that are universally loathed. They're just, absolutely, people just dislike them. So managers really dislike giving the feedback and employees really hate receiving the feedback. Oftentimes, they'll use a lot of ineffective strategies, like the compliment sandwich, which you know, you say something nice and then you follow it up with something really critical. And then of course, just to make sure they leave on a positive note you end it with a positive. And so, all of these tips and tricks just lead to a lot of disappointed participants in this process. There was a study done a couple of years ago, where 55% of people said they didn't feel that their annual performance review was fair or accurate representation of their performance. 2/3 said there were surprising feedback in the review, (laughs) which you would think that shouldn't happen. And then 3/4 of employees said there were no specific behavioral examples given to support the feedback. So, this is a really broken process which many leading organizations are starting to realize and make changes as a result of it.