This summer, consultancy firm Accenture joined Netflix, Microsoft, Adobe and Deloitte in ditching annual performance reviews. Does this spell the end for this cornerstone of traditional performance management?

A survey recently conducted by Deloitte found that 58% of executives questioned believe that their current performance management approach does not drive employee engagement or contribute to high performance – so clearly there is opportunity for improvement. According to Hannah Priest, behavioural psychologist at Mind Gym, the key to an effective performance management system isn’t the process you chose, but “in encouraging the right behaviours to build a high-performance culture.”

This means that whether you stick with annual performance reviews or consider some alternatives, the important element to ensure optimum levels of engagement and productivity is your approach.

Priest argues that the six conditions necessary for an effective performance management system are:

Purpose: conveying to employees that their work counts and is noticed.

Challenge: setting performance-enhancing goals that are aligned and achievable – but just out of reach.

Attention: communicating that performance is noted and appreciated. “Employees who think their manager always knows what they are up to and how they are doing are far more likely to feel appreciated and raise their game,” says Priest.

Growth: instilling a belief that goals can be achieved and performance can be improved.

Recognition: based on clear criteria and focussed on the employee.

Choice: ensuring that employees have a strong sense of their autonomy within the organisation, and are empowered to make choices that align with wider goals, but allow them to contribute according to their individual strengths.

Keep in touch

One approach now being adopted by many companies is an ongoing performance review process comprising of check-ins throughout the year, involving consistent feedback (and follow ups), goal-setting and self-reviews as opposed to the traditional once-a-year review.

“Basic psychology tells us that if you’re going to reinforce or punish some behaviour, you want to do it as soon after the behaviour happened as possible,” says Mark C. Frame, associate professor in the Middle Tennessee State University Department of Psychology. “Waiting a month is not a good idea and waiting a year is definitely not a good idea.”

This approach will also ensure that your rankings are kept up-to-date throughout the year, and will allow you to effectively deal with any performance-related issues as they arise.

Whichever approach is right for you, there’s no doubt that an effective and well thought out performance management system is essential to keep your organisation both streamlined and on track.

New research commissioned by MetLife Employee Benefits has found that 73% of employees will experience stress upon returning to the workplace after a break. Given that nearly 10 million working days a year are lost due to stress, this is cause for concern for employers.

“It seems a concern for many people is they worry about catching up with backlogs at work. Workplace stress is a major issue for employers and employees and it has a real impact on business performance,” said Tom Gaynor, Employee Benefits Director at MetLife UK.

Here are three simple measures you can take to combat back to work stress, and minimize disruption to your team’s productivity.

Be flexible
Nearly half of the respondents to a study conducted by NOW: Pensions cited early starts as the main reason for their back to work blues. Octavius Black, CEO of Mind Gym, suggests that employees should be encouraged to work to their natural rhythms. Those who are morning people should tackle big projects first thing; but for those who take a bit longer to get going, scheduling such work for later in the day is a more effective solution.

Be prepared
31 per cent of those polled by MetLife said that catching up with work backlogs is their main cause of back-to-work stress, so work with employees before their holiday to ensure they have appropriate cover and that deadlines upon their return are reasonable.

Daniel Callaghan of MBA & Co suggests that employees scan their emails the night before returning to work so that there are no nasty surprises awaiting them in the morning. Consider establishing the practice of a quick catch up call with a colleague the day before an employee’s return, to help them feel as though they’re hitting the ground running.

Be engaged
Of the 17% who were looking forward to going back to work, 40% said it’s because they like their job. A return from holiday could be a good opportunity to check in with an employee’s SMART goals to help renew their sense of purpose and direction. Though NOW: Pensions found that better pay would improve job satisfaction for 46% of the respondents, Pete Pedone, president and founder of home audio/video system design firm Interactive Home told Business News Daily: “Showing an employee how much the company appreciates, respects and values them on a personal level is much more gratifying.”

Further, a recent Gallup poll reported that people who smile and laugh at work are more engaged – so maintaining a positive atmosphere that encourages creativity will ensure that employees look forward to returning to work.