The topic of employee appraisal apparently hits a nerve in many staff. Our contribution New Leadership in Global Businesses: Bye Employee Talks! was accessed more than 3 times within 11.000 days. Most of the readers' voices confirmed the rather demotivating one Effect of the annual appraisal. But what is happening in Germany's management floors?

appraisal interview

Only 6% say “goodbye employee review”

Only about 6% of the Fortune 500 companies have so far said goodbye to the common management tools. These include Accenture, Google and Microsoft. They no longer have time tracking, nor do they have annual performance reviews.

It may not come as a surprise that all these companies belong to the elite and are leading the way to a new one Work organization, The New way of Work already successfully have implemented, away from hierarchical control thinking towards Esteem the person. And it is no longer surprising that precisely because of this “new type” of Guide your employeeEngagement and also significantly improved their market positioning.

Does Germany have only managers, but no leaders?

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On the other hand, the many discussions with German managers as to whether this could and should also have an effect in their companies were frightening. Most Executives stood by this development negative or strongly doubted that such a development would promise success. This culminated in the emphasis: “At least once a year there should be an in-depth Conversation take place with every employee.”

What a disaster this shows about the state of our German management and above all about ours Leadership Understanding!

Hardly any of the managers had understood that with the omission of the annual Employee conversation is by no means cut off. On the contrary: in the above-mentioned companies there will be a continuous Feedback cultivated with the employees, even demanded as a verification of the basic values ​​and Company-Culture. So it finds vehemently more Communication with the employees instead of. Constructive topical feedback, a dialogue on eye level with colleagues and employees. The basis for this is trust and appreciation, trust in the willingness to perform and self-motivation, in the result orientation of the individual.

More communication, more feedback - more success

This continuous dialogue based on partnership, this mutual exchange, the focus on further development, this joint development of Solutions and improvements form the basis for the outstanding market positioning of the companies mentioned. One klare Employee orientation, in which the individual not only once a year in his Performance judged, “judged” and controlled.

In times of the digital Transformation only those companies can be and remain successful that have such a "People First" approach implement. Especially younger generations, millennials, demand this dialogue and continuous feedback. You want to develop yourself useful contribute with their performance and in theirs Personality, but not just once a year, but continuously. Otherwise, they leave the company much earlier than other generations, after an average of 2 years, while Generation X stayed around 5 years and Baby Boomers stayed around 7 years on average if they were dissatisfied. A culture without annual employee appraisals therefore requires real leadership skills and actual personal attention and appreciation.

Management instruments and measurement criteria offer only an apparent security

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German managers, on the other hand, rely more on management tools and formalisms that give them a feeling of “security” than on active interpersonal dialogue.

Although managers in large corporations often have to spend an average of more than 200 working hours just for preparation and follow-up, such as carrying out annual employee interviews and evaluations. According to a study by the CEB HR Consulting companies with around 10 employees use around $000 million annually just for measuring the performance of their employees, including modern performance management Technology.

Formalism culture kills motivation

Why do managers need to rank and measure performance in a grid from 1 to 5? Because this grid is often used in annual performance reviews. In such formalisms, the three are defined as the middle as “good performance” and this is where most “really good employees” are classified. The managers then squirm around the reasoning even with really good employees, and very few are granted a 4 or even 5 every now and then when a promotion is soon to come. And then they have to defend these few against their manager colleagues. The cut has to be right. Only small percentages are set for best performance.

A System for the sake of the system can be based on this for sure do not motivate you to perform better. Any employee who is committed, performs well and even has this confirmed by his manager feels motivated when he is and remains just "average". Personalities, commitment and many types of achievement simply cannot be crammed into such a grid. Such a system offers an apparent "leadership security", but is counter-productive and hinders personal development, Innovation, Motivation and performance increase. Above all, they prevent sustained the joy of work.

Previous performance management system miss the target

Especially since the basis itself, the performance based purely on goal-oriented leadership, is in line with the new economic challenges of a digital World can no longer be fair. Which Set have remained constant for a whole year? - Above all, which of the goals can the individual really influence solely through his or her personal performance?

In most cases, goals are linked to the willingness and ability of other team members and colleagues to perform. If they don't want to or can't perform, then their own performance and their own results are in a bad way. Even a senior manager who found himself under a lot of pressure found, after analyzing his personal goals, that he could only really influence 15% of them himself: "And I'm ruining mine for that Health and my Family".

The results are too low

Whom may it be astonishing that the result of such a time- and cost-intensive process is much too low: even the positively evaluated performers were rather demotivated and frustrated by the annual employee discussions, especially since the time-direct and high-quality dialogue with the supervisor thus not could be solved. The goal of encouraging and motivating the employees individually was thus missed.

Whilst it may come as a surprise that the Gallup Commitment Index in Germany has been at an extremely modest level since 15 years, despite the elaboration of measurement criteria and management instruments. In all these years, the percentage of employees with a high level of commitment to the company did not rise by 16 percent, fluctuating between 61 and 70 percent with a low bond, and even showing a frightening picture of employees without any binding in 16 to 24 percent.

Poor grades for managers

In the 2015 Gallup study, employees gave their German executives bad marks, especially with regard to communication and exchange, the very skills that are so necessary in a networked project culture. 21 percent only spoke to theirs once a month Team, another 21 percent even less. This means that almost 50 percent of employees have no regular team agreements or even personal feedback.

With so little personal dialogue, so little personal appreciation: what benefit can then be achieved yearly Employee talk realiter?

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