In a recessionary economy it is more important than ever for companies to retain talent and help every employee do his or her best. A critical aspect of retention and performance management is helpful feedback to employees. Annual performance reviews are the typical method for conveying feedback but they are not the solution anymore and probably never were, especially how they are usually done. Wendy Kaufman did a story for NPR’s Morning Edition today, titled “Companies Rethink Annual Performance Reviews,” giving examples of companies that have switched to providing feedback on a continuous basis, using a coaching-oriented process.
Companies need to make this switch to an on-going coaching alliance between employee and supervisor. This will be essential if they want their employees to learn, develop, and be successful in this economically dynamic and uncertain environment.