Are Development Centres more effective than traditional Performance Reviews?

The requests that we receive for the provision of bespoke Development Centres have definitely increased in the past 5 years and 2023 has them at an all time high.

We believe in their value, having seen it first-hand. We know the methodology we use makes the process robust, and that the results can often be game-changing for professional development and performance levels.

It is interesting to hear that there are emerging schools of thought which propose their use ahead of the more traditional methods of performance review. This thinking is based on the belief that Development Centres consistently prove more effective than traditional performance reviews in terms of improving employee performance and development.

Some of the latest findings on this topic indicate the following factors in support of the use of Development Centres for performance acceleration:

1. They provide a more comprehensive assessment. Development Centres typically use multiple assessment methods, including simulations, role plays, interviews, technology, presentations to evaluate a person's behaviours, competence and potential. This more comprehensive approach provides a more accurate and complete picture of employee strengths and development needs compared to traditional performance reviews, which can be based on more limited data sources.
2. They provide a greater focus on development. While performance reviews tend to focus on past performance and evaluation, Development Centres are designed to identify and develop employee potential for future roles and responsibilities. As a result, Development Centres are well suited for helping employees grow and develop their skills over time.
3. They achieve improved engagement and motivation. Employees who participate in Development Centres tend to be more engaged and motivated because they are provided with individual, personalised feedback and focused development plans. It is an immersive experience that requires their commitment and engagement. Experiencing this type of support helps employees feel valued. When investment is made into the growth and development of employees it leads to higher levels of job satisfaction and performance.
4. There is an increase in organisational alignment: Development Centres can also be used to align employee development goals with the strategic priorities of an organisation. By identifying and developing talent that is aligned with organisational goals, Development Centres can help to build a stronger, more competitive workforce.
5. They support succession planning: Development Centres are an effective method to use for identifying potential successors for key positions within an organisation. By identifying and developing high-potential employees, Development Centres can help to ensure that an organisation has a strong pipeline of talent for future leadership roles.

In our experience, all of the above are likely or potential outcomes of a Development Centre, when it is not provided as a generic experience. Therefore we can agree that there is an argument for using them alongside traditional methods of performance review. Done effectively however, performance reviews can achieve similar outcomes, but this is more reliant on a consistent approach and continuous process than a Development Centre. All to often traditional reviews are deemed or doomed to be less effective as a direct result of how they are undertaken or perceived.

When tailored to match a real development or performance need, Development Centres are hugely impactful. Bespoke design, expert facilitation, using trained internal or external observers means that they are consistent, objective and as a result are more likely to achieve lasting improvement in employee performance, engagement, and development and that is what makes them a most valuable tool to organisations.