The company I work for conducts two annual performance reviews on direct reports. Neither are tied to compensation. I spend an inordinate amount of time on these with clear examples, facts, and offering suggestions for my direct reports to grow. What I get is garbage. No one spends time on these. No one provides examples on what they achieved, or challenges they have overcome, nor described how they did it. It looks like they spent a total of maybe 15 minutes on them.
I have advocated that these move to once annually and be performed on the individual’s anniversary date. I realize that the company goals may not coincide with the timing of these, but for me, it makes it easier to spend time on each individual. Otherwise, I’m cramming a half dozen reviews into two weeks!
Eventually, when the economy grows, they can be tied to compensation. For more information on performance reviews, Compensation Today blog provides a terrific overview.