3 Assessment Findings to Help You Gauge Performance: AMA Research

May 25, 2015

talent assessments

What types of assessments are the most effective at predicting success? American Management Association sought to find the answer and surveyed attendees at the ATD International Conference & Exposition in Orlando, Florida. Based on 330 responses from training and OD professionals, here are the results.

Finding 1: 360 Degree Feedback Considered Most Valuable Assessment Type

We asked respondents to answer a series of questions and rate their opinions of various types of assessments, also indicating whether or not they add value to their organizational and individual performance. The most positive results were for 360 degree reviews, which almost 90% of respondents believed added value.

Given its widespread use, it’s surprising that the performance review received the least enthusiastic response. Only 75% of respondents agreed that annual performance reviews added value to their company’s performance. It ranked lowest compared to self-rated competency (85%), personality (88%), and 360 degree (89%) assessments. Performance reviews are widely used to keep employees focused on measurable results and executing strategy, so this shift in perceived value is significant.

Finding 2: Respondents Skeptical Performance Assessments Predict Performance

While the media has reported wide dissatisfaction with performance appraisals for some time, many companies still use them as one of the only ways to fairly determine raises and other compensation. Based on this study, however, only 58% of respondents agreed or strongly agreed that performance assessments could accurately predict performance, suggesting these might be a poor measure of whether increased compensation is warranted. Many respondents were neutral (26%), and 15% disagreed or strongly disagreed that these assessments predict performance.

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Finding 3: Respondents Dissatisfied with Employee Performance Appraisals

Given the first two findings, it should come as no surprise that only 37% of respondents reported being satisfied with their employer’s process for performance appraisals. This indicates that there is tremendous room for growth, and that an annual review process may not be the best path forward.

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Want to better gauge your employees’ skill levels in 37 different core competencies? Try AT3, AMA’s free Talent Transformation Tool.

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About The Author

American Management Association is a world leader in professional development, advancing the skills of individuals to drive business success. AMA’s approach to improving performance combines experiential learning—“learning through doing”—with opportunities for ongoing professional growth at every step of one’s career journey. AMA supports the goals of individuals and organizations through a complete range of products and services, including seminars, Webcasts and podcasts, conferences, corporate and government solutions, business books and research.

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