White Paper: Employees in Hong Kong Find Annual Performance Review Demotivating
Morgan McKinley has recently carried out research on the future of Performance Management in Hong Kong.
The research was based on a total of 353 feedback collected from both hiring managers and their employees in the workplace. The report presents opinions and challenges faced by both hiring managers and their employees when performing annual reviews and continuous reviews.
Findings show that there is a disconnect between what employees need and what organisations are providing.
Here are some of the key highlights:
78% of employees feel that they are not reviewed accurately while 66% disagree with their managers’ feedback during the annual review. 72% of managers also admit that they experience disagreement regarding feedback and scores given. Feedback from employees regarding this practice include “Relying on the annual review doesn’t allow us to solve problems timely”, “It needs to be more frequent”, “This is based on recent performance rather than overall performance”.
Employees prefer continuous performance management over annual review as they feel the latter limits collaboration and communication with their managers. 65% of employees said the annual review was not motivating to them while 55% were unhappy with the amount of daily feedback they receive from their managers.
In contrast, 44% of employees said continuous review improves collaboration with their managers and allows them to solve problems quickly. Also, 62% of managers stated that this practice allows them to have a two-way communication with their team members and coach them so they could improve throughout the year. However the biggest challenge for managers is to the time taken to conduct this practice which can be even more difficult when managing bigger teams.
The purpose of performance management is to promote and improve employee effectiveness. Through this process, managers can provide feedback, acknowledge achievement and provide recognition. However, regardless of performance review style, clear goals must be set and performance reviewed against metrics. Managers need to be trained or they would fail to meet team members’ expectations on running the process.
Ultimately the performance review process must be approached from the perspective of building engagement. Managers must be trained on communication, review process and defining clear goals. HR managers are also advised to drive this process and guide both managers and employees to ensure employees are kept engaged and motivated.