Is the salary-linked annual performance review dead?

Use perfromance management to coach your people and provide frequent, on-going feedback

Use performance management to coach your people and provide frequent, on-going feedback

When big names like Accenture, Adobe, Microsoft and GAP all announce they have stopped linking salary increases to annual performance reviews this underscores the fact that some organisations’ performance management techniques just don’t work.

Organisations are moving towards a wider distribution of leadership roles, as well as more flexible working (both location and hours). Along with this has come a flatter hierarchy and an increasing need for quick action. Given this, your leadership style and skills may need to be updated to make performance management more meaningful. How is your leadership style developing?

As a leader you need to have a positive attitude to performance management. When it is used in an ongoing fashion, and focuses on both individuals and teams, leaders can use it to create a highly motivated workplace.

This happens when you involve your people so that they use their team voice in helping identify good performance. Together you can develop appropriate, fair and relevant measurements that also align with company strategy. Performance evaluation needs to take place with an understanding of the challenges and issues that may not have been within the team or the individual’s control – essential to ensure assessments are fair.

To do this well, you may need training to improve your ability to tailor ongoing performance management. The best training for leaders balances both technical and soft skills. But such an effort is worthwhile because it will allow you to use ongoing positive performance management to motivate your people well – to support them in times of need; and to praise them for good work, and recognise extra effort – and be seen in a positive light to promote team bonds. Remember not everyone has a preference for receiving feedback so gauge the predominant feedback preference of your team members.

Is the salary-linked annual performance review dead? In large organisations the press seem to think so. More important is the desire and need for performance management to focus on people-development rather than people-payment no matter. Therefore, involve your people to help identify good performance. Collaborating together provides a chance that the performance management systems and techniques will be meaningful, motivating and align both your work and that of your people to organisational strategy.

Reach us at 07779 345 499,

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Marjorie Raymond

Marjorie Raymond


We have experience in developing senior managers and their team members – both on an individual and team level – so they can develop practical approaches that encourage positive, constructive behaviour. This, in turn, leads to the development of positive beliefs and values. We are ready work with you, to help you get the best out of your people.

Here are some examples of approaches that can be used and tailored to your individual needs:

  • Certified ACT practioner
  • Support if you are being bullied, or have a member of your organisation who has made a bullying complaint
  • Certified Mediation practioner, to address workplace conflict,
  • Personal development activities
  • Individual and group coaching…Coaching – a powerful way of developing people
  • Psychometric assessment, which can identify strengths as well as derailing behaviours and also include 360 degree feedback
  • Structured module for understanding the psychological contracts in your organisation, both at an individual or team level
  • Straight Talking: …Straight Talking create change through conversations
  • Special projects, secondments and assignments

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