“Our research finds that lack of opportunity for growth is one of the leading reasons for the elevated rates of voluntary turnover.”Įmployers should also keep messaging in mind when announcing performance review changes. “Visibility into the company’s evolving direction helps employees see opportunities for their own development and advancement,” the authors write. Organizations should be transparent about the business’s priorities, allowing employees to translate them into individual goals. Employers should connect organizational development goals with individual goals, write Michael Birshan, Roel Hoyer, Alex Katen-Narvell, and Dana Maor in a blog post for McKinsey. It’s just, ‘I do these activities, that’s my job,’ and organizations are saying, ‘Wait a minute, that’s not helpful.’”īut that doesn’t mean organizations should set unrealistically high standards for the sake of cutting workers. “That’s not aspirational because that doesn’t really drive greater growth, profitability, anything. It’s not enough for employees to write down their job descriptions as their goals. “What we’re hearing from clients is, ‘We need to up our standards because performance management processes aren’t actually getting anyone to do anything,’” says Melissa Swift, U.S. Others, like Goldman Sachs, have brought back performance reviews after a brief pandemic-induced hiatus. Large employers, including Google and Salesforce, are setting higher standards for employee performance reviews, with intentions to weed out underperformers and cut down on rising labor costs. Performance reviews are the latest frontier in the employer-employee tussle.
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