FACTS ABOUT EMPLOYEE PERFORMANCE
45% of HR leaders do not think annual employee performance reviews are an accurate appraisal for employee’s work (talentmanagement360)
Companies who implement regular employee performance feedback have turnover rates that are 14.9% lower than for employees who receive no feedback (Gallup,2011)
Only 8% of companies believe their employee performance management process is highly effective in driving business value, while 58% say it’s not an effective use of time (Deloitte, 2014)
53% of employees say employee performance reviews don't motivate them to work harder (ClearCompany, 2016)
61% of Millennials say they would switch to a company with no employee performance reviews (Adobe, 2017)
Employees who see performance reviews as inaccurate are 2x more likely to look for another job (Globoforce, 2013)
Only 14% of organizations are happy with their performance management system (HBR, 2013)
Two-thirds of performance management systems misidentify high performers (CEB Global, 2013)
Over an 11-year time frame, companies that had a performance management culture grew net income by 756 percent, versus a 1 percent growth over the same period for those that did not. (Forbes, 2011)
Managers who received constant feedback on their strengths in their employee performance management process showed 8.9% greater profitability (Gallup, 2012)
The performance appraisal has more than a century of practice since the early 1900s when it was a more informal process and not spread very widely. In the 1920s, Elton Mayo, the Father of Human Resources, researched and measured the relationship between productivity and the work environment and as a result several social measures were instituted.
30 years later, mid-1950s there was a more formal approach that appears to be found in many businesses and usually consisted in personality-based systems for measuring performance. The 1960s brought a better focus on performance rather than on the personality traits of the employees and the systems developed focused more on goals and objectives. They focused on the future as well and included as instruments self-appraisals. Pay for performance was introduced in the 1960s.