The workplace of the future isn’t a hierarchy — it’s a network. In fact, at many companies, the change has already taken place. Peers have a better sense of what each employee is contributing, and some employees may report to multiple managers, depending on the project.
That’s one reason formal performance reviews are being phased out.
Employees know feedback can help them – in fact, 65% want more feedback. As we’ve written before, the best way to drive a feedback culture is to enable employees to ask for it, to put them in the best mindset to receive and apply feedback to their work.The best way to drive a feedback culture is to enable employees to ask for it Click To Tweet
Financial titan J.P. Morgan Chase is about to debut just this functionality among its vast workforce. The company’s HR chief John Donnelly said the program will debut with two major pieces – a performance tracker to give employees – from investment bankers to tech workers and beyond – with performance reviews that will be viewable between themselves and their immediate supervisor, and a real-time feedback tool that allows employees to request and receive feedback from anyone in the company, and at anytime.
According to Fortune, the launch of the program also means lower-level employees will be empowered to personally review their supervisors. What’s more, such a review isn’t likely to remain anonymous – unless it’s passed on to a reviewee’s manager who “wipes” the name before sending it along.
This new, real-time review system has been initiated to replace the traditional one-time annual performance review at J.P. Morgan Chase – although the latter is expected to still factor into company compensation decisions.
This new review system was reportedly created in response to surveys among J.P. Morgan Chase employees, who desired constant feedback from managers. It is expected to be fully in place by 2018.
J.P. Morgan Chase isn’t the first company to dramatically alter their internal performance review process. Morgan Stanley and Goldman Sachs overhauled their performance review systems last year. Morgan Stanley switched out its one-to-five-point scale in favor of adjectives and Goldman Sachs now utilizes constant feedback that opts not to rate employees on a nine-point scale.