Rethinking Performance Reviews: Recognizing and Addressing Biases for a Diverse and Inclusive Workplace

Performance reviews are a critical part of every employee’s work life. Unfortunately, living up to the standards set by an employer isn’t always easy, especially when feedback on performance is not objective or fair. Studies show that women and people of color receive more negative feedback in these reviews, resulting in an imbalance that causes them to be less likely to receive promotions or raises.

HR leaders have an obligation to rethink performance reviews. The current system is not benefiting everyone equally. Rather than encouraging employees to strive towards a common end goal, it is creating an unfair performance review process with devastating consequences for some employees.

Textio, a software company that uses artificial intelligence to improve business writing, has taken on the task of studying performance reviews. It approached this study in two ways. Firstly, it surveyed 500 people about their experience with performance reviews. Secondly, it conducted data analysis of written performance reviews for more than 25,000 people. The findings addressed several key issues with performance reviews.

The problem with personality feedback is that, although it is often well-intended, it can focus on the employee’s personal traits rather than their professional capabilities. Changing one’s core personality is a lot harder than improving a skill. This type of feedback can feel personal, confrontational, and can be incredibly demotivating.

Executives and managers need to focus on an employee’s actions, capabilities, goals, and objectives for future performance. Feedback should be actionable and specific to help employees’ performance improve instead of discouraging them.

Understanding the Stereotype Threat

The stereotype threat was coined by Claude Steele and Joshua Aronson in 1995, and it refers to the concern people from underrepresented groups have about confirming stereotypes along racial, ethnic, gender, or cultural lines. For example, an African American employee may feel that others view them negatively because of their race. This perception can cause fear, anxiety, and the expectation of an unfavorable review.

Companies can tackle stereotype threats by creating an anti-bias culture, conducting inclusivity training, and removing problematic language from performance reviews.

The Importance of Words in Performance Reviews

Words matter, and in performance reviews, they take on particular significance. Certain words have a gender-biased connotation such as assertive, aggressive, and emotional, which can cause harm. Such labels leave employees feeling dejected and insecure, and further reinforce unequal power dynamics at work.

Defaulting to lackluster, non-committal language isn’t a viable solution. It undermines employee confidence and their ability to grow. Instead, HR leaders should aim to provide constructive feedback that aligns with employee performance.

The Importance of Actionable Feedback

Actionable feedback is critical to prevent performance reviews from being a waste of time. Employees should receive specific feedback that will help them set goals and objectives for improved performance. Managers and executives have a responsibility to provide straightforward and actionable criticism, rather than overly vague, meaningless feedback.

Creativity in the Workplace

Now is the time for Human Resources to think creatively about how people work. Employees had to adapt to remote work, new technologies, and new ways of collaborating. Companies need to embrace innovation, create agile solutions that prioritize employee well-being and creativity.

The Importance of Feedback and Coaching for Professional Growth and Development

Feedback and coaching are crucial for professional growth and development. People often join companies, however, frequently leave their managers. Therefore, managers should invest time and effort in providing actionable feedback that helps employees to grow.

HR leaders should take a critical look at how they review and evaluate their employees. Companies need to prioritize combining objective feedback with performance review metrics to ensure that every employee has an equal chance to succeed. Providing measurable and individualized feedback is a critical step in improving performance and employee satisfaction. When organizations value diversity and inclusion, constructive feedback becomes a tool for growth, rather than a means of repression.

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