What is referred to as the recency effect in performance ratings?

The recency effect in performance ratings refers to the influence of recent events on the evaluation process. This phenomenon occurs when evaluators give more weight to an employee's most recent behaviors or performance, potentially overshadowing their overall performance throughout the review period. In practice, if an employee has performed exceptionally well or poorly just before their performance evaluation, this will likely drive the evaluator’s assessment, regardless of how that performance compares to previous months or the employee's overall contributions.

Understanding this concept is crucial for human resource management as it highlights the need for a more balanced and comprehensive approach to evaluations. Evaluators should strive for a holistic view that considers the full scope of an employee's performance rather than being swayed by their latest actions. This helps mitigate biases that can surface in performance appraisals and supports the fairness and accuracy of the rating process.