Ratings & Reckonings
Washington Post columnist Michele L. Norris wrote a piece about racial reckoning in December 2020. She described a reckoning as “...not an action item on a wish list. It is a thing. An accomplishment. A checked box. A reckoning by definition refers to the moment when we finally deal with an ugly situation. It is more than just admitting that there’s a problem.” An epiphany, she explained, is not the same thing as a reckoning. Think of epiphanies as those aha moments we often have.
Undoubtedly, 2020 was a year of disruptive discovery with lots of aha moments. Turned on our heads by the pandemic, we saw drastic changes when it came to working. Leaders in likely all organizations had epiphanies on many aspects of work. One that comes to mind: performance appraisals and evaluations.
Many organizations adjusted their performance evaluations in 2020 to account for the challenges created by the coronavirus. Google combined its usual two review periods into one and rated employees against revised expectations. Facebook suspended performance ratings in the first half and used a formula to calculate bonuses that were above the standard target. In the second half, it returned to its typical process. Box, the file-sharing service, encouraged more regular feedback between managers and employees and had just one, not two, formal review cycles.
On the same day that Norris’s column appeared, there was a post on LinkedIn by Dan L. Ward. “My best advice for those considering what sort of rating/ranking process to inflict on employees who have survived 2020 is to leave those poor people alone. They have suffered enough for one year!” Ward has led the redesign of employee performance management systems at three major organizations, processes that were rated industry best practices.
Other organizations made changes in 2020. Goldman Sachs, acknowledging that the dynamics of today’s challenges underscore the need for more transparency, had managers meet with employees three times a year, formalizing a process that was only encouraged before. Hopefully, employees received more meaningful feedback.
Some organizations suspended formal reviews for 2020, recognizing that no one, employees and managers alike, needed the additional stress. Some of these organizations are contemplating never bringing back a formal review process.
Have these changes accelerated the shift toward more frequent feedback? The world of remote work forces managers to have more check-ins with team members. Will this be the new default?
When work returns to its normal rhythms, or something close to it, will leaders in organizations have a reckoning about performance management—namely, taking a systems approach rather than being preoccupied with performance ratings and rankings?
Granted, performance management systems must be unique to every organization and meet their individual needs. However, the dreaded performance review, with its associated ratings, is an ugly situation in many organizations. One reason is that they are often tied to pay increases, promotions, and future layoffs. If the only time you talk to employees about their performance is when you are also talking about money, what are they listening to hear? Perhaps it’s time for a reckoning in many organizations―an opportunity to move their performance management system to a feedback mindset rather than one focused on quantitative measures.
Cornelia & Barbara