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Performance reviews can have negative impact, TriNet survey finds

October 28, 2015

Performance reviews negatively impact productivity, morale and talent retention, according to a survey released by PEO services provider TriNet Group Inc. (NYSE: TNET). This is especially true with the younger workforce; the survey found performance reviews drive one in four millennials to search for a new Job or call in sick.

“Companies need to incent millennials to step up and lead,” said Rob Hernandez, product manager, TriNet Perform. “We’ve seen innovation in so many other areas of business but our approach to performance reviews still needs to be overhauled. Done well, they optimize performance so that workers can grow into leaders. Done poorly, they can be the catalyst for good employees to leave.”

The survey found 62% of millennials have felt “blindsided” by a performance review, and 74% frequently feel “in the dark” about how their managers and peers think they’re performing at work. Nearly half, 47%, feel that receiving a performance review makes them feel like they can’t do anything right.

While 69% of millennials reported they see their company’s review process as flawed, they also depend on it for their professional growth and development. As a better option, 85% would feel more confident in their current position if they could have more frequent performance conversations with their manager.

The TriNet Perform Survey was conducted by Wakefield Research among 1,000 US full-time employees born after 1980. It was conducted between Sept.4 and Sept. 15, 2015, using an email invitation and an online survey.