Why Your Employee Performance Review Needs to Change for Millennials

Are Your Performance Reviews Paying Lip Service to Your Performance Needs?

One man standing on the edge of a cliff with a question mark above his head while a man across on another cliff tries to communicate with a megaphone

The 5 Ways Your Performance Review is Failing Millennials

Millennials currently make up more than a third of the global workforce, and that number is rising quickly. By 2020, one out of every two workers will be a Millennial. While this is good news for a world that needs innovation and technological savvy – two areas in which Milennials excel – it can be difficult news for companies who don’t know how to effectively manage this new generation of workers.

In fact, many of the management techniques that worked so well with Baby Boomers and Gen Xers, don’t work with Millennial workers. This is particularly true of the performance review. The performance review as practiced by most companies is failing Millennials for five main reasons:

1. It’s infrequent. Millennial workers crave constant feedback. While older generations may have been fine with an annual review, Millennials want to know how they’re doing on a continual basis. Frequent feedback enables them to keep tabs on their careers, making adjustments as needed to get them where they want to go.

2. It’s impersonal. Millennial workers have ambition, and they set high expectations for themselves. Unless their performance reviews address their individual strengths and discuss how their current position and performance will affect their personal goals, the feedback won’t feel relevant.

3. It lacks a career path. Unlike Baby Boomer workers, Millennial workers are highly mobile in their careers. They don’t expect stability, and they don’t want it. Instead, they want managers and feedback that help prepare them for new challenges, positions, and roles – preferably ones they can jump into quickly.

4. It’s unconnected to training. Millennial workers expect rapid progression in their careers, and they value learning from mentors. If their review doesn’t include avenues for growth and ways to improve their performance, they’re going to feel short-changed.

5. It doesn’t bring the right kind of value. Millennial workers are less motivated by traditional incentives than previous generations, and many would prefer more flexibility and a better work/life balance than conventional rewards. A review – and company – that doesn’t take their personal preferences for encouragement and praise into account won’t satisfy or motivate them.

Companies who want to increase Millennial engagement and reap the vast benefits these workers can bring to their organization may need to reconsider the way they currently assess and review employees. A systematic competency-based approach that blends performance, employee aspirations, and career development may be the answer. To learn more, download these resources:

Webinar: Career Pathing: Is It the New Performance Appraisal.

White Paper: How to Successfully Implement Performance Management

Webinar: 5 Shades of Grading: How Inconsistencies in Performance Reviews Cause Turnover

employee performance review
Are Your Performance Reviews Paying Lip Service to Your Performance Needs?

A process that turns managers and employees into team members. A system that offers frequent and consistent feedback. A training and mentoring program that enables employees to excel. According to some theories, that’s all you need to ensure active employee engagement and a strong team culture. And, it’s almost true. A strategic performance management system […]

Man standing on stack of coins, scratching his head with a question mark above his head
Pay-for-Performance: Good Idea or Failed Concept?

Compensating employees based on performance seems like a solid idea. In theory, it makes perfect sense: High performance equals increased compensation, which further motivates employees and leads to even higher performance. The reality, however, is different enough that it has many human resource experts wondering if pay-for-performance is anything more than a trendy concept. The […]

Man trying to move mechanical gears with his hands
Are You Retaining the Right People?

Employee retention is a hot topic these days, and many companies now have some idea of how to track and improve their employees’ satisfaction and loyalty. Unfortunately, despite its plethora of benefits, improved retention isn’t necessarily a cure-all for all of a business’ productivity and profitability issues. To truly see results, you have to make […]