More than six out of 10 (63%) of companies polled in March 2004 said they conduct performance evaluations once per year. This is up from 57% of respondents answering the same in April 2003, according to a survey conducted by compensation consulting firm Compensation Resources Inc.
The results though did not carry through on biannual evaluations. In March 2004, only 16% of respondents said they conducted performance evaluation two times per year, compared with 17% in April 2003.
Upper Saddle River, New Jersey-based Compensation Resources though recommends management conduct performance evaluations bi-annually: one during mid-year (interim) and the formal performance evaluation at year-end with each review taking into consideration different performance factors.
The survey was conducted by Compensation Resources throughout March 2004. Compensation Resources surveyed 571 companies.