
Performance Reviews and Workplace Stress
The NY Times Health section recently reported on workplace studies that show the negative health effects of stress at work and in particular, cited performance reviews as a cause. Although performance reviews are necessary to separate the high performers from the low performers and provide adequate documentation, most of us also acknowledge the difficulty in delivering effective feedback and even those of us who agree they are necessary, cringe at the thought of giving reviews.
So is anyone surprised at the link between performance reviews and workplace stress? In fact, this finding relates to a much broader area of research which links high stress levels, low productivity, low engagement and low morale, to one major factor: the relationship with and/or perceived competence of the front line supervisor. The Conference Board research cited in this article is only one among many studies showing that employee satisfaction is greatly impacted by the quality of managers.
Two important lessons can be taken from these findings: In brief, there is no one-size-fits-all and a performance review system does not need to be overwrought. Oftentimes I consult with organizations that do not have the will or the means to develop a system that integrates performance with competencies, pay or organization-wide goals. In such cases, I stress the following:
- Start a performance review program by sitting down with each employee once a year and reviewing the job description to discuss changes, perceptions of the job and expectations, all the while keeping the discussion focused on the job.
- Then establish goals for the coming year that reflect priorities for the organization. Set timelines, and target dates to report on progress.
- Finally, keep a record of summary comments by supervisor and employee about the outcome of the interview.
This type of review process steers away from judging attributes or personal characteristics which often give rise to the perceptions of unfairness, especially where trust is in question. Rely on a well drafted personnel policy with a discipline policy to address problems that disrupt business and relationships at the workplace.
The second important lesson is that while after years of research, we now know that leaders with emotional competence (“people persons”) create less toxic, less stressful workplaces. What is becoming more evident in the research is the stronger link between first line supervisors and stress. So we need to think more about assessing people skills in lower level supervisory positions as well as assessing and coaching in this area. Some specific suggestions include:
- Develop internal mentoring relationships to promote informal coaching and feedback.
- If possible, provide formal coaching by an external person to help supervisors follow a more structured development plan.
- Provide an outlet for employees to report problems with supervisors (this is where a good HR person is vital).
Good relationships lend themselves to productive feedback. So leaders who hire can, and should, place a premium on people skills. Also, use performance reviews sparingly and consider all the various ways to deliver feedback. The main idea is to communicate what is important in the job, both short term and long term. So, conduct mini-reviews everyday on yourself and your staff and then ask yourself, “what important conversations do I need to have today?”
OTHER NEWS AND UPDATES OF INTEREST
Save the Workplace and Fire Bad Supervisors and Managers This blog post continues the discussion on supervisors and performance evaluation.
Another piece that compliments today’s topic: How to spot a liar and why it might be harder if he’s the boss.
Be aware! One of the proposed amendments by the DOL for the Fair Labor Standards Act is that all employees will be considered non-exempt unless proven exempt. In order to “prove” exemption, the employer will need to show that a position has been analyzed, that the job incumbent has reviewed the analysis and that the analysis is kept as a record for review by wage and hour in the event of an investigation.
Did you know? Employees harassed by Third-Parties: Male Prisoners Harassing Female Correctional Employees In this case, the employer was responsible under Title VII for harassment.
Inability to get along with co-workers can be sufficient basis for adverse employment action – from Employment Law Matters – note that this case highlights the importance of good documentation.

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