One of the worst things you can do during a performance review is intending to push employees to accountability and performance but instead demotivating them. However, that's what research has found that some performance reviews actually have a net negative effect.
A recent study led by Kansas State University assistant professor of Management Satoris Culbertson, discovered that even employees who are focused on learning don't respond well to negative performance reviews.
These results are startling since they go against the whole reason to do performance reviews in the first place. It's important to realize that performance reviews need to be balanced, negative ratings should be balanced by focusing on the strengths of the employee. And negative ratings should not be seen as weaknesses but areas for development. Gallup has consistently found that it's better to focus on strengths than attempt to fix weaknesses.
Other organizations like Intel and Google have taken factoring in heavily measurable goals (Objective Key Results). For instance, an employee who is shy may score low on communication but that does not necessarily have anything at all to do with their actual performance.
This does not mean to say that competencies and forced rankings aren't important. Other research has shown that removing the ratings out of performance reviews results in a 10% decrease in performance. It's necessary that people feel they are held accountable. It's helpful for determining compensation and it's extremely important to have time dated performance reviews in case a legal issue should arise as a result of termination.
The use of a performance management system like DeepTalent can help create a more positive employee culture by factoring in more open real-time feedback. In the moment awards and peer feedback help drive more engagement and manager reviews help hold supervisors accountable to being the best.
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