The traditional annual performance review may be falling out of favour with New Zealand business leaders. Research by global recruitment company Robert Half confirms that more than one in three (31%) chief financial officers (CFOs) don’t believe annual performance reviews are necessary in today’s workplace.
In today’s fast-paced commercial environment only 3% of finance leaders in New Zealand believe employees want to receive feedback annually. The majority say their staff would prefer feedback on a more regular basis: 33% believe employees would like monthly feedback, 29% point to quarterly feedback and another 19% see value in providing immediate feedback on the spot.
There is less preference for annual reviews among small business leaders. Four out of ten (39%) CFOs of small organisations do not favour annual performance reviews compared to 26 percent of medium-sized businesses and 27% of large business organisations.
Megan Alexander, general manager Robert Half New Zealand said: “Performance management is still an important aspect of any human resources policy. If done efficiently and thoughtfully, performance reviews can foster a corporate culture that encourages staff career development and it can also be an effective way to improve employee engagement and loyalty.
“However, the chance to deliver feedback to employees and offer career development doesn’t need to only happen on an annual basis. There are numerous other ways to keep employees motivated, and businesses need to be prepared to think creatively of other ways to gain the best output, results and loyalty from their staff.”
Companies can use a variety of strategies to keep employees motivated, engaged and loyal to the company.
More than half (53%) of New Zealand CFOs believe one-on-one discussions between employees and their managers which are geared toward career development can be effective in keeping employees engaged and motivated, closely followed by 52% who see training opportunities as being a source of motivation. Another 42% say awarding salary increases and promotions, followed by 41% who encourage employees to offer suggestions and putting their ideas into practice. Only one in five (21%) refer to employee recognition programmes and awards.
