May 11, 2018
May 11, 2018
Contributor: Jackie Wiles
Employee performance improves when organizations foster a culture of peer feedback and capture how employees add value to others work.
Serena has 10 direct reports to evaluate, and she is finding it difficult. Her team faces ever-faster project cycles and the people best able to adapt at speed — the employees she values most and wants to incentivize — aren’t scoring well on the company’s ratings for specific job goals and behaviors. Serena’s problem is common in today’s complex business environment, where the demands on employees evolve rapidly and employees add value to each other’s work.
Some organizations might consider scrapping performance ratings altogether in today’s changing workplace, but that would likely undermine employee performance. Instead, companies can bolster performance management in three ways: Provide ongoing, not episodic, performance feedback; make performance reviews forward-looking, not backward-looking; and include peer, not just manager, feedback in evaluating performance.
Of those three tactics, research by Gartner shows peer feedback can have a particularly strong impact, boosting employee performance by as much as 14%.
“As work becomes more interdependent and managers have less direct visibility into the day-to-day of their teams, high-quality peer input has become an essential part of effective performance feedback,” says Jessica Knight, research director at Gartner.
To improve the quality and accuracy of peer feedback, managers should identify sources of feedback based on who has knowledge of an employee’s work, rather than the employee’s formal relationships. The possible sources of 360-degree feedback include these peers:
One global professional services company asks its employees to recognize the contribution colleagues have made to their success through a point system, rather than evaluating their cognitive behaviors. For example, of 10 points, an employee might assign 1 point to a peer who provided encouragement during a challenging project but 4 points to a colleague who introduced a solid prospect based on their understanding of the business.
A material science company asks employees to rank peers based on the impact and effectiveness of their contributions, and whether the peer’s behavior aligns with enterprise values when make a contribution. Employees make qualitative comments to justify their rankings. For example, one peer might get a 1 for streamlining an existing process or cutting costs, but a 3 for pioneering a new approach to solving a strategic challenge.
There are do’s and don’ts for an effective peer-to-peer feedback program that ensure integrity in the process. Employees shouldn’t review peers they don’t know well enough to evaluate, should only focus on their own (not secondhand) experience of peers, should never focus on personal traits that aren’t related to work and should never share their comments with colleagues.
To review peers effectively, employees should:
Employees initially may be uncomfortable providing feedback, especially to those who are senior to them in the organization. It is important to set the tone for open and honest conversations, maybe even train employees to give high-quality feedback. One global food company clearly sets objectives for the peer reviews in general and specific guidelines for upward reviews. It urges employees to focus on what is already working, not just what needs to be improved, to give concrete examples, focus on the future not the past, and avoid being judgmental.
Ultimately, the aim is to frame all observations in a constructive way that helps engage others and encourage the network of peers to listen to each other’s ideas and solve problems together in a way that drives continuous performance improvement.
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Recommended resources for Gartner clients*:
This article is based on insights that are part of an in-depth collection of research, tools, templates and advice available to Gartner clients.
Some Gartner clients can read more in Six Ways to Fix Performance Management.
*Note that some documents may not be available to all Gartner clients.