HCI Press Releases

HCI Explores the Paradox of Performance Appraisals in Latest Talent Pulse Research

Report Addresses Negative Aspects of Appraisals and Offers Best Practices on Revamping the Process for the Contemporary Workforce

Author: HCI  |  Source: HCI  |  Published: November 20, 2014

NEW YORK (November 20, 2014) – The Human Capital Institute (HCI), the global institution for strategic talent management, today announced the release of its latest Talent Pulse, a quarterly research eBook exploring the biggest trends and challenges in managing talent. In this new report, “Conducting the Dynamic Performance Appraisal,” the organization provides an in-depth look at the crucial yet much maligned and often misunderstood employee appraisal process and its role in effective performance management.

Performance appraisals, which typically occur on an annual or bi-annual basis, are generally disliked by employers and employees alike. Although they are developed and utilized as a way to enhance organizational performance, both parties often view the process as more of a burden than an essential task. Moreover, a poorly managed appraisal system can actually lead to negative results, ranging from lower job satisfaction, higher turnover and decreased performance. However, they are still an important function for talent management, with most companies having a system to evaluate employee performance in place.

In this research, HCI explores the employee appraisal process in depth, from the challenges of commonly used performance evaluation methods to the features necessary for creating an effective program that meets the needs of today’s talent management professionals and their workforces. In addition to identifying the most important factors in creating a successful performance appraisal system, the report analyzes the impact of rewards, recognition and recurring conversations between managers and employees on creating effective performance management systems.

Key findings from the research include:

  • Unrealized Potential: The top motivations for conducting performance appraisals are to improve performance, align employees with company goals and develop employees. Though performance and development are two of the top three motivations, most professionals report that their appraisals are not effective at improving either.
  • Lack of commitment to process: Most professionals surveyed (74 percent) want to see managers and supervisors more committed to performance appraisals, and 81 percent agree that managers need improved training to conduct appraisals.
  • Fundamentals of effective employee appraisals: Characteristics of effective performance appraisal systems include enabling employees to give input into the process, tying employee goals to larger business strategy, providing appraisals as a collaborative process between employees and managers, and clearly stating the purpose of the appraisals to employees.
  • Achieving success: The organizations that espouse the above features are more likely to report being satisfied with their appraisal system, believe it to be more effective in developing employees and increasing productivity, hold employees accountable for improvements after formal evaluations, believe they have a strong culture of recognition, and are more committed to having recurring conversations with employees about performance and development.

“Despite the negative connotation, employee performance appraisals should still be an essential part of performance management; as long as they are done effectively,” said Carl Rhodes, HCI’s chief executive officer. “Rather than being a chore that is uncomfortable for all parties involved, the process should be truly collaborative and transparent, ensuring employees understand how their own efforts tie into larger, company-wide goals. Whether a company is looking to implement or revamp its appraisal program, our latest research outlines the tools, methods and processes to ensure they adopt a system that works.”

HCI will explore the topic of performance appraisals with a corresponding webcast, to be held on Monday, November 24, 2014 at 3:00 p.m. EST. Additional information and registration details can be accessed at: http://www.hci.org/lib/hci-signature-research-conducting-dynamic-performance-appraisals. Webcast registrants will receive a copy of the research report.

About HCI Research

HCI is a premier thought leader in the new discipline of strategic talent management with an unparalleled reputation for innovation, leadership and excellence, demonstrated through cutting-edge research and analysis. HCI Research draws from the knowledge of a large network of executive practitioners, expert consultants, leading academics and thought leaders, as well as thorough quantitative and qualitative analysis, to produce insightful findings and recommendations that shape strategy and encourage action across the continuum of talent management. To learn more, please visit: http://www.hci.org/content/research.

About Human Capital Institute (HCI)

Human Capital Institute is the first choice for HR professionals and organizations who have decided to accelerate their journey from traditional, tactical specialists to strategic, high-impact business partners. HCI seeks to educate, empower, and validate strategic talent management professionals to impact business results through the acquisition of insights, skills and tools that are contextualized through research, practice, expert guidance, peer learning, and self-discovery. Visit HCI.org to learn more.

Press Contacts:

Company Name: Human Capital Institute (HCI)
Press Contact: Randi Kenney
Phone: (866) 538-1909
Email: randi.kenney@hci.org
Website: http://www.hci.org/