Employee feedback is the compass that leads individuals and teams toward greater performance.
Industry leaders like GE, Accenture, Deloitte, Amazon, Facebook announced that they are done with their inefficient performance review processes. They replaced their performance reviews by getting rid of rankings and implemented frequent feedback systems to enable employee growth.
The better employees feel about their overall experience, the more their enthusiasm will translate to higher customer satisfaction. This virtuous cycle fosters a critical need to engage employees and collect their feedback. Being a company that listens is the secret to increasing employee performance.
So: How do we build a feedback culture and become a company that listens?
Unfortunately, feedback is often inconsistent and difficult to apply. Most of the time, it is clouded by both cultural and technical problems. A number of factors get in the way: Constraints on time and attention, process complexity, and management disinterest among them.
On top of all that, it is not helpful if people simply complain. Instead you want them to give each other constructive feedback. Without some framework with which to do so, however, average employees may not know the best way to go about it.
The most effective way to overcome these hurdles is by establishing a feedback culture and deploying a modern performance review system based on clear, actionable feedback. Such a system transforms the feedback process into one that adds value for managers and front-line staff.
Annual performance reviews are quickly becoming a thing of the past, with 95% of managers surveyed saying they are unhappy with how reviews are conducted. At the same time, 90% of HR leaders question whether the information received is accurate.
With that in mind, modern companies that plan to yield real value from feedback must leave old-fashioned performance review systems behind. These must be replaced with tools that facilitate frequent feedback and enable continuous improvement.
The modern performance review system offers all of the benefits below:
1. Higher Employee Satisfaction
Relevant, actionable feedback is one of the most important factors in maintaining high employee satisfaction. Pertinent feedback increases engagement and helps employees feel involved. The best performance reviews offer timely recognition of achievements as well as points for improvement: A performance review system ensures a full-spectrum review that raises morale.
Do not forget, if you want your customers to be happy, you need your employees to be happy.
2. Greater Employee Loyalty
Feedback clears a pathway for professional growth. The opportunity for continuous, goal-driven improvement helps cultivate leadership at all levels of your organization. A review system shows that your people are a priority. That not only makes an impression on employees who have other prospects, but helps distinguish you as an employer of choice that can attract top talent with the trust culture at the workplace.
3. Better Talent Development
Promoting from within is more efficient and cost-effective than a long outside search. Concrete feedback is the fuel that powers your talent development engine. Your employee review system will help you put feedback in context, giving employees real insights into how they can strive. That, in turn, can help you optimize talent development and recruitment.
4. Faster Reporting Turnaround
With developments in technology and near-total mobile device penetration in business life, feedback is usually delivered on a real-time basis. By contrast, traditional feedback models have a long lifecycle: It can take weeks to craft reports for everyone. With the templates and tools provided by an employee review platform, you can ensure your team gets feedback while it’s still fresh – while leaving managers and HR free to focus on high-level tasks, not report design.
5. Superior Calibration of Results
Feedback is most valuable when it’s 360 degrees and comparable over time. A performance review system will centralize feedback across all employees, departments, and units, giving you everything you need for a uniform and distributed feedback strategy. Plus, a modern system surfaces feedback highlights for individuals across reporting periods so you’re fully aware of their improvement in key areas.
6. Simplified, Efficient Processes
Managers are often resistant to investing time and effort in performance reviews. Just like many employees, they have difficulty connecting their input to real results. A performance review app simplifies the process of creating and distributing feedback. That turns it from a chore into something that more easily integrates into management workflow across departments.
Today’s managers spend about 210 hours annually on performance management, and employees about 40 hours. A new system is the key to cutting that number by 75% or more. Timely, positive reinforcement has been cited by 69% of employees as a motivating factor!
7. Best Practices in a Box
HR offices across the country are responsible for facilitating employee feedback, but there are a dozen conflicting frameworks for doing it. A modern performance review system that is focused on real-time feedback exchange using mobile devices will help you end paralysis by analysis and more forward with a clear, consistent approach. Your software will help you track outcomes over time and link feedback to KPIs that really matter.
It’s time to get excited about all the potential performance reviews have to strengthen your team. A new performance review system will supercharge the process and bring feedback to the next level.
To find out more or get started, contact us today.