Recently Accenture, one of the world’s largest companies, announced that it is going to “ditch” annual performance reviews for over 33,000 staff. Accenture plan on introducing a more “fluid” system, in which employees receive timely feedback from their managers on an ongoing basis following assignments. Accenture says that all the time, money and effort spent didn’t ultimately accomplish their main goal — to drive better performance among employees. Similarly this year, Deloitte announced that it was piloting a new program in which, like at Accenture, rankings would disappear and the evaluation process would unfold incrementally throughout the year.

My thoughts are as follows:

  • Many PDR processes are purely box ticking exercises – if this is not the case for your business, then you might even share the secret of your success with us!
    Regular reviews of work is a far more effective and natural means of providing feedback to employees. Everyone should know where they stand and there should be limited or no surprises along the way
  • The simpler the PDR process the better – short and sweet is good
  • If you are going to go down Accenture’s path be aware that some managers are either too busy or incapable of providing constructive feedback to their team members. Senior management need to be aware of this and compensate for this lack of skills where possible
  • If you are going to stick with your more formal annual PDR process, please make sure you follow through on the piece which refers to “anything that we can do to help you do better in your job”
  • There is nothing more disengaging for employees who come up with constructive ideas and then you don’t hear another word as managers go back to their “real job”

In summary, I am delighted with this latest trend and look forward to hearing how the debate unfolds for other corporates around the globe. At HR Search, we would really like to hear your thoughts on the subject.