personal growth is critical to company success
Talent Development

The Alternative to Performance Reviews that Suck

September 14, 2021
2 minutes
Emily Vo

Kaisa Savola

two guys pointing to a performance review form
January 2, 2022
Talent Development

The Alternative to Performance Reviews that Suck

2 minutes
Kaisa Savola

“95 percent of managers are dissatisfied with the way their companies conduct performance reviews, and nearly 90 percent of HR leaders say the process doesn’t even yield accurate information.” A bit old but still a very relevant article from Washington Post. Many organizations are still running this process dissatisfying people and yielding little results. It’s also quite expensive.

Why the process makes people unhappy and yields little results

One of the biggest reasons for unhappiness is that performance reviews are done once a year. People get their hopes up, excited to set new goals to help them become better professional selves and for the most part, end up disappointed. Because the wishes don’t happen.  

When development plans and goals are written and saved into a Word (or similar) document, and followed up max 1/year, it’s a no brainer that it delivers little results. It can also create catastrophic situations and results:

“Due to our poor performance review process and follow-up, one of our employees ended a 4-year fulltime project with a customer just to realize that her technical knowhow and expertise was outdated.”    

Yearly Performance Review process costs $3 500/employee

Not only is this process inefficient and ineffective, but it is also expense. CEB, now Gartner estimates that a company of about 10,000 employees spends roughly $35 million a year to conduct reviews. That is roughly $3 500/employee! Give me another example of a spendy process like this, where it just keeps going and going and going…

Most of the expense comes from spending time looking and gathering the information because its stored and scattered in multiple places (folders, inboxes, personal notes)

•   1on1 -notes are in the team leads personal notes or in an email

•   People’s skills are in CV documents, or spreadsheets

•   Performance reviews are in Word documents.

So, an organization with 100 000 employees is spending $350 000 a year on this process. The price increases, when you incorporate the time your HR and Managers spend on updating incorrect and outdated data, maintaining templates, accessing previous 1on1 notes, and trying to make future-oriented decisions on outdated data.

In today’s world and preparing for the future of work, more agile, cost-efficient, and transparent processes need to be introduced to People Development and Leadership.

“Not one project would have been successful if it was planned and followed up like a yearly performance review -process.”

Cost-Effective and Agile Alternative to the PowerPoint – Excel – Word show

Looking to save some time & money, introduce efficiency to your people development process and make happy and engaged people? Look no further: Talbit is your solution! A cost-effective, employee-driven and agile solution built to support you now and the future.

Upgrade your Talent development process

1.  Start by combining your PowerPoint Strategy, Excel Skills and Word Performance Reviews into one platform.

2.  Create your strategy in a concrete and transparent manner using the OKR -framework.

3.  List the skills that are needed to reach those goals and

4.  bridge the gap between now and the future using ready-made development plans and agile growth plans.

5.  Follow-up the progress in an efficient and regular manner.

We keep your data up to date, offer it in a way that makes sense so that you make future business decisions and allow each person to contribute to that growth and success.

More blogs

talbit product updatetalbit product update blur
Talent Development

3 Tips for Improving Employee-First Experience with Internal Growth Opportunities

With the changes of what matters to employees and what they’re looking for at work, it’s more crucial now than ever before to develop solid strategies that truly put employees at the center to retain a world-class workforce.

talbit product updatetalbit product update blur
Talent Development

How to Connect Employees with Growth Opportunities and Support Their Personal Development

Investing in your people is one of the best ways to invest in the future of your business. Here are some ways you can maximize the potential of every employee.

talbit product updatetalbit product update blur

How to Make Meetings More Focused and Inclusive

Meetings can be incredibly effective tools for people to collaborate, share information, and make decisions about the future of a project. But unfortunately, it often runs ineffective and takes your team away from productive work.

Interested in exploring?
Try Talbit for free and see the platform in action.