Out with Annual Reviews and in with Real Time, Smarter Feedback

“Performance appraisals wouldn’t be the least popular practice in business, as they’re widely believed to be, if something weren’t fundamentally wrong with them.”
-Harvard Business Review

In the past decade, there has been a rapid increase in the number of corporations throwing out the traditional annual employee review process and looking for something new. Companies from all over the world are ditching their outdated systems and replacing them with frequent, informal check-ins between managers and employees. At Scoutahead, our platform is designed to facilitate and improve upon this type of real time feedback where it matters most.

With a system that has been used for over a century, why are so many companies now looking for a new way to conduct performance reviews?

To start, corporations must invest heavily in the time it takes to complete reviews, which includes the mountains of paperwork they generate. Traditional reviews have also been criticized for restricting creativity, innovation, and not promoting a collaborative team-focused environment. Not to mention the supervisors and subordinates disdain for the appraisal process.

The Harvard Business Review piece, “The Performance Management Revolution,” gathered the following business imperatives that are leading companies to abandon performance appraisals:

  • In order to better their talent management efforts, companies have begun to put more of a focus on staff development. Firms are putting more employees in charge of their own growth, which is fueled by frequent, rich feedback from supervisors.
  • Business strategies are more focused on innovation, and future needs are continuously changing. Businesses no longer have clear annual cycles, projects have become short-term, and goals tend to change frequently, making annual assessments of work outdated and

In short, the traditional performance appraisal no longer make sense for the majority of businesses. HR information systems have started to adapt by moving annual appraisals online but they haven’t been designed to accommodate continuous feedback that positively engages their employees. Scoutahead fills that gap by providing a platform that facilitates employee participation in determining their own evaluation criteria and also enables them to solicit continuous feedback from their colleagues prior to their formal review. In this way, Scoutahead provides a next-generation platform that allows employees to take charge of their own growth, real-time.

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