5 Ways Real-Time Feedback Benefits Your Business More Than Traditional Reviews
Employees once awaited annual reviews with trepidation. But today, millennials are hungry for feedback on their performance. Good news for employers? Yes, unless they fail to provide reviews quickly enough. Real-time employee reviews have become essential.
There is no question employee performance reviews are valuable. From the employer’s point of view, they learn which workers are doing their jobs well, and can also help to identify potential leaders of the future.
But employees also recognise how valuable these reviews can be, helping them measure their progress at work, underline their strengths and weaknesses, and identify the path their careers are taking. The challenge is getting this information as quickly as possible.
Employee Reviews In Demand
Just how welcome employee reviews are to employees is a little surprising. A 2013 survey by recruitment company Glassdoor revealed an overwhelming majority (81%) of participants would work harder if their boss showed appreciation for their efforts.
The survey also showed that 53% of participants would stay at their current employers if they felt appreciated.
A study by Accenture, meanwhile, showed 71% of respondents agreed with the idea that real-time feedback leads to better performance at work.
Why Traditional Reviews Don’t Work
Traditional annual employee reviews began in the 1970s when the concept that employee satisfaction fueled efficiency was widely accepted and worker output was easily quantifiable. Modern output is less so, with the most talented employees bringing knowledge, adaptability and innovative thinking rather than straightforward production.
This change has been reflected in the effectiveness of the traditional annual review structure, with just 20% of companies stating they were happy with their performance reviews in 1992, and just 5% five years later.
5 Benefits Of Real-Time Employee Reviews
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- Allows HR Focus On Core Objective
With so much data to review, real-time employee feedback allows HR to channel their energies into the core objective – to get the most out of existing personnel. The data gathered is unbiased and transparent, so employees get a clear reflection of their productivity and learn whether they are accomplishing their goals in an acceptable time. And if not, they can correct their faults immediately, bringing productivity up as quickly as possible.
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- More Accurate Insights
Because real-time feedback is based on unbiased data, it provides a more accurate insight into any particular employee – both historical and predictive. This allows for more accurate strategically planning in terms of the employee’s professional development. But more significantly, it develops a self-awareness that encourages them to approach their manager to assess weaknesses in their performance.
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- Simpler Annual Appraisals
Real-time feedback does not need to spell the death of the old annual employee reviews. In fact, it can make annual appraisals easier to compile. The data already gathered can be aggregated into overall annual figures with any gaps brought up during the review process in conversation.
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- More Efficient Conversations
Armed with the data gathered through real-time feedback, employees and managers enter the review discussion fully aware of the facts. With both sides aware, conversations can be more open and efficient. There is no time wasted debating opinion and observational assessment, just constructive discussions about the employee’s role and whether they are fully aligned with the goals set for them.
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- Satisfies Millennials
It’s a basic concern, but since millennials have shown such an acute respect for real-time feedback, providing it has become essential. Millennials have few scruples in switching employers, so retaining them is dependent on providing them with what they want and expect. Millennials love instant recognition and prefer collaboration with colleagues and superiors, both of which can only be delivered within a real-time feedback framework.
