What are recency effects in performance appraisals?

Recency effects in performance appraisals refer to the tendency of evaluators to place disproportionate weight on an employee's most recent performance rather than considering the entire evaluation period. This phenomenon can lead to inflated ratings because evaluators may focus on the most recent behaviors or outcomes, which can overshadow an employee's overall performance throughout the evaluation period. For instance, if an employee delivered exceptional results in the last month, those results might unduly influence the appraiser's overall assessment, regardless of how the employee performed in earlier months.

Acknowledging recency effects is crucial for creating a more balanced and fair appraisal process, as it can lead to misrepresentations of an employee's true performance trajectory. By understanding this cognitive bias, organizations can develop strategies to mitigate such effects, ensuring evaluations reflect a more comprehensive and accurate view of employee performance.