Performance reviews can be defined as employee performance evaluations or performance appraisals, which are used to assess whether employees are fulfilling their job duties.
At the beginning of the year, employees usually commit to a list of goals to be met, and at the end of the year they must reflect on their contributions by completing a self-assessment form that they send to their managers. The managers then share their reflections and suggestions.
In these analyses, the objectives and KPIs (key performance indicators) of each employee are quantified. The aim is for each manager to provide constructive criticism to clarify responsibilities and accountability, but also to encourage personal and professional development.
Such evaluations often generate mixed feelings for managers and employees. Some perceive feedback from their bosses as a guide or opportunity for improvement, but for others it can be an imposing or stressful encounter.
In any case, a performance review is not only one-way. The employee being evaluated must also provide comments and proposals in the subsequent meeting.
The use of artificial intelligence in performance reviews
Taking into account that data collection and compilation are essential for the preparation of these evaluations, it is logical that artificial intelligence has become a very useful tool for their preparation.
Advantages of using AI for performance reviews
Upraise identifies three clear benefits of using AI, in particular machine learning, for the process of conducting a performance review.
The first of these is the easy gathering of information from multiple sources. Certain positions collaborate with different departments, so it is only fair to have feedback from all of them in order to do a complete evaluation. AI makes it possible to get feedback from each in a very simple and agile way.
Another obvious benefit of this introduction is to be able to conduct performance appraisals in real time. Although each employee's goals are set for a certain interval, AI makes it easy to know if they are on track.
Thus, managers have the opportunity to recognize or reward each employee if they are doing well or give them a little slap on the wrist if they are deviating from the target. This makes it possible to anticipate and solve major problems before they escalate.
Finally, AI makes it easier to eliminate all those common psychologies associated with performance reviews. Although performance reviews try to stick to quantifiable objectives, they still have a large subjective component.
The relationship between employee and team leader can greatly determine these analyses. Inevitably, managers can be influenced by their formed opinions of individual employees and review their performance accordingly.
Everyone has biases and, as in many other areas, managers can also err on the side of seeking information to support their existing beliefs (confirmation bias).
This is not the only cognitive bias, there are many others, such as the Halo and Horn effect, which causes a person's positive attribute to focus all of someone's attention, or the memory bias, where someone is valued only for the latest events, without taking a historical look at other contributions or tasks performed.
The superpowers of generative AI
The advent of generative AI in this area means even greater advantages for managers in the process of producing performance reviews.
One of its strengths is that it can help leaders communicate feedback to staff effectively. Technologies such as ChatGPT can create more understandable reviews for employees and provide them with a more empathetic tone and constructive language.
In addition, its great capacity to collect and analyze data from different channels such as emails, instant messaging such as Slack or Teams and internal platforms, as well as the ease with which it synthesizes the information saves a lot of time to elaborate these reviews. Likewise, its algorithms can process feedback from a variety of sources, such as colleagues, subordinates, supervisors and even customers.
AI algorithms also help identify the strengths and weaknesses of each employee, aiding in the development of customized development plans. ChatGPT and similar tools can suggest specific learning content or courses for each individual to supplement their skills or grow in their career path.
