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Here’s Why Continuous Employee Feedback Is Far Superior to Annual Reviews

And you’ll see more improvement and productivity as a result.

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THERE ARE MANY reasons why companies are choosing to give continuous feedback in lieu of the outdated practice of annual reviews.

One problem is that many annual reviews tend to rely on the last four to six weeks of performance — or at least that is what management tends to easily recall. Additionally, they tend to be too formal. They cause stress by being tied to potential salary increases, and because they typically focus on what the employee needs to work on, they inadvertently demotivate and disengage employees.

It is far more advantageous to give regular feedback. One of the benefits is that it removes the pressure and stress generally associated with annual reviews.

Regular feedback functions as an engagement tool and helps build trust between employees and management and contributes toward a growth mindset.

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And, it’s an opportunity to set clear goals and expectations.

Continuous feedback creates an environment where the employee is receiving information about what they’re doing well and what they can improve. It helps address issues and concerns before they become problematic.

Furthermore, it increases engagement and productivity. According to Gallup, “Highly engaged businesses achieve 59% less turnover,” and having conversations about development improves employee engagement, which improves productivity and profitability. And, according to Bain & Company, engaged employees are 44% more productive than workers who merely feel satisfied.

When done correctly, ongoing feedback can build stronger relationships. The person delivering the feedback must be willing to share their observations, both good and bad, and the recipient must be open to hearing the feedback about their performance or behavior.

Incorporate ongoing feedback through the following steps.

1. Schedule one-on-ones. You’re more inclined to prepare and implement if it is on your calendar. Find the right frequency based on the progress you see, but no more than weekly or even bimonthly.

2. Keep it simple by starting small and focusing on one or two items. You don’t want to overwhelm your employee with so much information that they leave not knowing where to start. Remember to allow your employee to contribute toward the conversation. The onus is on you to make the employee feel safe to ask questions, share concerns and suggest ideas.

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3. Be specific and use examples when giving feedback. Make sure you avoid generalizations. Give real-time feedback on productivity, goals and expectations, work quality, etc. and be sure to also include things that they are doing well.

4. Choose your language carefully and avoid comparisons. When you give constructive feedback that you want your employee to work on, speak to the behavior that you want them to modify or change as opposed to using words like “you are” or “you did.” Never compare them to other employees, as this can lead to resentment toward their job and others.

5. Action plan. You must give them specific actionable items that support the area you want them to improve. One to two items are generally sufficient, and you should stay the course until you are satisfied with the progress. Don’t make the mistake of thinking you must have something new every time you meet.

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