Marie Unger discusses the need for modern-day companies to bring their review processes into the 21st century.
For Marie Unger, the CEO of organisational development company Emergenetics International, we are living in an unprecedented time, wherein the current job market is unlike anything we have experienced before. Buffeted by mass layoffs and a sharp change in workplace expectations, she explained, “employers and jobseekers are navigating unfamiliar territory and 2025 will be a defining year”.
With this in mind she is of the opinion that the standard, one-size-fits-all annual review is in need of some swift modernisation if it is to appeal to a drastically changing working environment. With key talent unlikely to stick with an organisation that does not adopt an employee-first perspective, she noted that as the influence of younger generations grows, organisational leaders will have to respond in a manner that reflects the new dynamics.
“Every generation has different requirements of their employer, and when those fundamental needs aren’t met, employees start looking for new opportunities. It’s important that managers get to know their direct reports on an individual level and tailor their leadership styles to meet employees where they are while maintaining clear expectations when it comes to performance.”
Out with the old
For many the traditional review process, while being a universally accepted method, could benefit from a modern touch, with many companies instead choosing to review employees via continuous evaluation. This enables employers to give regular feedback throughout the year and gain valuable insight into achievements and any barriers to success, in a timely fashion.
For Unger, very few workplace processes succeed when approached as a one-size-fits-all practice and in this modern era employees have evolved to expect significant investment into their careers. “This mindset has seeped into our professional lives. Companies that can respond with agility, adapting to modern-day expectations, will be ahead of the curve,” she said.
Employers could benefit greatly from acknowledging the many diverse perspectives that can exist within an organisation and that each individual employee is going to conduct themselves and their work differently, when compared amongst their co-workers. Unger would advise employers to establish a comprehensive review strategy that puts the individual, not the workforce, at its core.
“Any evaluation model must allow for flexibility by role, by level and by employee. When managers understand that a direct report may think or behave differently than themselves, an employee is far more likely to receive a fair assessment of their performance. Without the proper training, supervisors are likely to evaluate another’s performance based on their own preferred work styles. Ultimately, that does a disservice to all parties and can create discord.”
Additionally, employers should strive to evaluate their current processes to determine if and where they are becoming generic and how they can be better optimised, to serve an individualised workforce. Data can be an invaluable tool in determining which forms of review and feedback channels are having the greatest impact.
“If a department has high turnover, it might indicate that once-a-year reviews aren’t sufficient. The team might benefit from a continuous coaching model that provides real-time feedback. High-performing employees with potential for growth could benefit from quarterly assessments. If cross-collaboration is central to the business model, project-based reviews should be implemented, and with learnings shared beyond the core team.”
Resistance is futile
There is a well-known quote from the Star Trek franchise, spoken by the Borg, in which when attempting to merge their species’ knowledge with others, they claim that resistance is futile and in some cases they are correct. However, there is no good reason as to why employers should so actively resist modernising the annual review process.
According to Unger, employers, particularly those in charge of larger organisations, often perceive change as being overtly difficult and costly, however, she believes that if companies were to give human resource departments more control when it comes to driving organisational goals, it would reduce some of the financial burden and stressors.
“I see an opportunity for a mindset shift where HR is a revenue accelerator. Think about it, the cost of turnover for any given role is now estimated to be between one-half and four times the employee’s annual salary. That adds up quickly for businesses of all sizes. It starts by giving HR a seat at the executive leadership table so they can align their efforts with the business objectives.
“When you empower HR to focus on attracting top talent, developing in-demand skills for your workforce and creating a productive culture, it increases engagement, innovation, and retention. When your employee base contributes at a high level, you accelerate your ability to achieve your goals.”
Ultimately for Unger a one-size-fits-all model, while being an accepted and widely used system, tends to create more gaps than value. For her, the frequent evaluation of performance is critical to the development of talent and if outdated will only serve to limit an organisation’s potential and that of its employees.
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