It’s well documented that employees, managers and HR pros believe that the annual performance review is a waste of time – they’re too generic and vague, not timely enough, and in the end they’re often simply seen as an admin task that doesn’t add any real value to either employees themselves, or the organisation as a whole.
“The debate around the effectiveness of annual performance reviews has surged in recent years, as managers criticize the inflexibility and infrequency of a formal, forced process. It’s an industry awakening to a system that is no longer effective on its own for the way companies and people are managed today. For example, managers are tasked with using only their own observations and analysis to appraise employees, yet many don’t have the tools to record pertinent events as they happen.
No matter the grievance, the effect is largely the same: managers lack the insight into employee performance to make traditional performance management processes work most effectively. But we’re on the cusp of a major change that uses the power of social to fundamentally shift from a traditional, top-down management hierarchy to a new bottom-up approach.
Enter the wisdom of crowds — or crowdsourcing. A group of independently deciding individuals is more likely to make better decisions and more accurate observations than those of an individual. Crowdsourcing, by leveraging social recognition data, is a better way for managers to collect, evaluate and share information on employee performance.”
Of course, in this particular situation, ‘crowdsourcing’ simply refers to the idea of each employee gathering information and getting feedback from multiple people who they work with on a regular basis. These are the people who can really see how hard the employee is working and what they are achieving. In traditional performance management, where the review is conducted by the manager (or HR) alone, there is just a single, narrow view that the employee’s performance is being based on, and this can often be inaccurate.
But perhaps the main question is: how can this be done effectively from a practical perspective? There are many tools and applications available for tracking employee progress and performance, one of which is Engage, which specifically allows for the gathering of feedback in realtime, which is of course the key to continuous improvement for employees.
And it’s not only managers that have access to provide feedback – anyone can be asked to provide feedback, from team mates, to colleagues in a separate department, to customers and clients, so the idea of ‘crowdsourcing’ performance management is covered.
Click through to read Eric’s full article, ‘Crowdsource Your Performance Reviews‘, where he also discusses several business and managerial benefits of gathering recognition and feedback from multiple sources.