How Performance Review Software Helps You Avoid Common Performance Review Bias Pitfalls

Posted by Trakstar • February 24, 2023 (Last modified March 29, 2023) • 5 min read

Performance review biases are bad – we all know that. However, how can you avoid them when we are all people with opinions, perspectives, and experiences? It isn’t easy, especially for new managers, large organizations, shift workers, and remote workforces. However, it’s an essential task for every workforce, regardless of size or industry.
If your performance reviews are filled with bias, it’s time to invest in performance review software.

Are you ready to let go of performance review biases and use purpose-built software to align your workforce? Schedule a demo of Trakstar Perform today.

What are Performance Review Biases?

Performance reviews can be subject to biases that can impact an employee’s performance evaluation. Some common biases include:

  1. Confirmation bias is the tendency to seek out and interpret information in a way that confirms pre-existing beliefs or expectations. For example, a manager may have a preconceived notion that a particular employee is not very competent and may therefore focus on negative aspects of their performance while overlooking positive contributions.
  2. Halo/horns effect: This occurs when an employee’s positive or negative characteristic influences the entire performance evaluation. For example, a consistently punctual and reliable employee may receive a more positive review overall, even if they have shortcomings in other areas.
  3. Recency bias is the tendency to give more weight to recent events or behaviors when evaluating performance. For example, a manager may only remember an employee’s mistake in the last month while forgetting about their many successes over the rest of the year.
  4. Leniency bias: This is the tendency to rate employees more positively than they deserve out of a desire to avoid conflict or give everyone good scores. This can result in inflated ratings that do not accurately reflect an employee’s actual performance.
  5. Stereotyping bias is the tendency to evaluate employees based on preconceived stereotypes or assumptions about their group. For example, a manager may assume that a female employee is less assertive than a male employee and may therefore rate her lower in leadership skills.

Managers need to be aware of these biases and strive to eliminate them from their performance evaluations to provide fair and accurate employee feedback.

Performance Review Software Creates Alignment & Standards

A structured performance review process ensures that all employees are evaluated using the same criteria and process. This helps eliminate potential biases or inconsistencies if the evaluation process is ad-hoc or informal. Even if you have different competencies (in fact, you should) and expectations, you can grade everyone on the same scale. This makes it easier to evaluate the overall performance of your organization, make comparisons when you undergo training initiatives, and as you make new hires.

When there’s structure, there’s also a framework for evaluating an employee’s performance based on objective criteria such as job responsibilities, goals, and key performance indicators (KPIs). This helps to ensure that the evaluation is based on facts and not personal opinions or biases. This makes it easier for new managers to evaluate employees and not overcompensate in either direction.

Software Helps Keep Things Clear For Employees

A structured performance review process provides clarity to employees about what is expected of them and what they need to do to meet or exceed expectations. This helps to align employees’ goals and objectives with those of the organization and provides a clear path for career development.

When you aren’t in a review season, performance review software can help employees track their progress toward achieving their goals. This can help employees see their progress and identify areas where they need to improve. For employees who are doubting themselves, it can show them where they have improved.

On top of that, software may provide employees with objective performance metrics, such as productivity or customer satisfaction scores. This can help them understand how they are performing compared to their peers or industry standards.

Overall, performance review software can provide employees with a clearer understanding of what is expected of them, how they are performing, and what they need to do to improve. This can help employees feel more engaged and motivated in their work, which can ultimately lead to better performance and job satisfaction.

Continuous Feedback for Everyone

A structured performance review process provides employees with regular feedback on their performance, which helps them identify their strengths and areas for improvement. This feedback can be used to set goals and develop a plan for professional development.

It can also keep your employees engaged and motivated. Employee engagement is one of the most important topics facing people leaders right now, and it is a struggle to keep everyone engaged at the same time. With continuous feedback, you keep those important touchpoints that let your employees know you are looking out for them and listening to them.

Everyone is Held Accountable

A well-thought-out performance review process ensures that employees are held accountable for their performance and that there are consequences for not meeting expectations. This helps maintain a high performance culture and encourages employees to strive for excellence.

Holding employees accountable is essential for several reasons:

  1. Ensures results: Holding employees accountable for their work ensures that they deliver the expected results. This can help ensure that the organization achieves its goals and remains competitive.
  2. Promotes responsibility: Holding employees accountable promotes a sense of responsibility and ownership in their work. This can help employees take pride in their work and feel more invested in the success of the organization.
  3. Builds trust: Holding employees accountable builds trust between employees and their managers. This can help create a positive work environment where everyone is working towards common goals.
  4. Identifies issues: Holding employees accountable can help identify issues and areas where improvement is needed. This can help managers provide support and guidance to employees to help them improve their performance.
  5. Promotes fairness: Holding employees accountable promotes fairness and equality in the workplace. This ensures that everyone is held to the same standards and expectations, which can help create a more positive and supportive work environment.

Overall, holding employees accountable is essential for ensuring results, promoting responsibility, building trust, identifying issues, and promoting fairness in the workplace. This can help create a positive and productive work environment where everyone is working towards common goals and achieving success.

Overall, a structured performance review process helps to promote a culture of fairness, transparency, and accountability in the workplace, which can lead to increased employee engagement, productivity, and retention.

Ready to give it a go for yourself? Schedule a demo of Trakstar Perform today.

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