Friday, February 13, 2015

Performance Reviews - Talent Management By Another Name

Most well run companies use annual Performance Reviews to judge and rate employee performance related to specific objectives for the job.   Ratings, or scores, are often used to determine a merit increase percentage and or bonus potential.  Performance Reviews should also be used to identify areas for improvement.  These discussions, if done properly, are really Talent Management, by another name.  This CEO Blogger has been managing people, in one capacity or another, for more than 40 years.  I have worked through all the Human Resource jargon, with the latest being "Talent Management" to basically do the same thing. 

A manager, who has direct reports, has as a primary function, the role of helping people grow and develop.  Constructive criticism, within an annual Performance Review, is a good thing.  In fact, employees interested in promotional opportunities should ask for it.  Every employee, even "A" players, can improve their performance and contribution to the company.  In providing suggestions for improvement, the manager does the employee a great service. 

Performance Reviews should be taken very seriously.  They are not just about determining the merit increase percentage, or bonus potential.  Performance Reviews should be used as an integral aspect of Talent Management in building a bench within the company.   That bench is the basis for Succession Planning as people retire, or otherwise leave the company.  Performance Reviews should be used to identify and promote long term employee growth and development.  The time spent on Performance Reviews, which can be considerable, is time well spent.          

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