A New Normal (?) for the Employee Performance Review

Facebook has announced, via an internal memo, that Mark Zuckerberg sent to employees earlier this week, they would be paying a $1,000 bonus to every employee to help during the coronavirus outbreak. In addition, Zuckerberg also said the company will pay contractors in full even if they are unable to do their work from home.

In addition, the company said it would give all employees an “exceeds” rating for their first six-month review of 2020. At Facebook, as at other companies, these ratings tie directly to bonuses and, according to reports, could result in all full-time employees earning significant bonuses.

Kudos to Facebook; of course they have the money so can afford to do this. But it’s still affirming to see employers (of all sizes) that are doing what they can from a financial support perspective at this unprecedented time.  

To me however the most interesting aspect of this is the use of the performance review to “get cash in hand” to employees. While getting managers to do 9-Box grids and “performance feedback sessions” is the absolute last thing HR professionals are focusing on right-this-moment, it DOES raise questions for when we come out the other end of this.

Among other things, this maneuver brought to mind:

  • When the performance review is directly tied to compensation (and, apparently the only mechanism for determining bonus level) we now have a company outright acknowledging that ratings can be ‘manipulated’ to give an employee a desired raise or bonus.
  • In HR we have worked diligently over the years to fight manager bias (calibration meetings!). We’ve created convoluted programs and valiantly messaged to employees that everything is “fair.” Now, however, they can say “see! It IS easy to adjust the rating to give me a raise!” (or withhold one….)
  • Will 2020 be the year when no employee – at any company – around the world – has an official/documented performance review?  Who is going to have time for that crap? Companies are in survival mode right now and will be for the remainder of the year.
  • Will the evaluation of job performance shift towards the best-it-could-be out of necessity? Right now we have managers providing continuous, immediate, face-to-face (or camera to camera) feedback. No need for forms, checklists and laborious processes.
  • What creative finagling will HR professionals have to go through to adjust their 2020 performance review process one we hit the end of the year?   

The business exercise of annual (or quarterly or semi-annual) performance reviews is not, nor should it be, what we’re thinking about right now. But we will.

Maybe this really will be the death of the performance review.

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