Are Performance Reviews A Thing of the Past?

It’s the meeting many employees dread—even high performers. The annual performance review has long been a workplace staple, yet it’s increasingly being questioned for its effectiveness, relevance, and emotional impact.

With roles evolving rapidly and workplace cultures becoming more agile and people-focused, is it time to retire the traditional yearly review? Or can it be replaced with something better?

What Is the Purpose of a Performance Review?

Traditionally, performance reviews have served two main purposes:

1. Probation reviews: Typically conducted 3–6 months after hiring, these assess whether new employees meet role expectations.
2. Annual performance reviews: Held once a year to reflect on past performance, discuss strengths and weaknesses, and often determine pay or promotion outcomes.

While the idea of structured feedback is important, many organisations—and employees—are now questioning whether this once-a-year approach still serves its purpose in modern, fast-moving workplaces.

Why Traditional Performance Reviews Are Losing Ground

Only 50% of employees clearly understand what’s expected of them at work, according to Gallup. This lack of clarity undermines goal achievement—and annual reviews don’t necessarily solve the problem.

Here are key reasons why annual performance reviews may no longer be effective:

• Anxiety-inducing: The anticipation of a once-a-year feedback session creates unnecessary stress.
• Information overload: One review to summarise a full year’s worth of performance can be overwhelming—and easily forgotten.
• Missed opportunities: Delayed feedback on mistakes or achievements results in lost chances for learning, growth or recognition.
• Outdated job relevance: Roles often evolve with new tools or goals. Waiting a full year to assess outdated criteria makes little sense.

While feedback remains crucial, the once-a-year approach may no longer serve today’s dynamic work environments. So what’s the alternative?

Alternatives to Traditional Performance Reviews

✔️ Frequent Informal Check-ins

Instead of a fixed schedule, managers can offer feedback immediately after specific projects, successes, or challenges. This encourages timely conversations, reduces pressure, and supports employee development in real-time.

✔️ Weekly One-on-One Meetings

Short, consistent meetings foster stronger manager–employee relationships and boost communication. Weekly catch-ups help with:

• Aligning on goals and expectations
• Creating a safe space to raise issues
• Increasing transparency and accountability

They also support more approachable leadership. For tips, see our guide on how to be a manager people actually want.

✔️ Real-Time 360 Feedback

This approach collects ongoing feedback from peers, managers and direct reports using platforms that anonymise and aggregate responses. It removes bias from single-rater evaluations and captures day-to-day contributions.

If you choose this route, be clear on implementation: Will feedback be anonymous? Who will review results? What rating criteria apply? Ideally, 360 reviews complement—not replace—one-on-ones with managers.

✔️ The MBWA Technique

Management by Wandering Around (MBWA) is an old-school method that’s back in favour. Leaders casually check in with employees on the floor or via informal calls in remote teams. It promotes open dialogue, builds trust, and encourages proactive support.

Simple, effective and great for morale—especially in hybrid work environments.

What About the Pay Rise Conversation?

Annual reviews have long doubled as salary discussions—but separating performance conversations from pay can improve outcomes. Here’s why:

• Less pressure: When reviews focus on growth—not negotiation—employees engage more openly.
• Recognition isn’t only financial: Consistent praise and support can be more motivating than infrequent pay bumps.
• Raises should reflect contribution, not tradition: Let employees drive the conversation when they’re ready to demonstrate added value.

Encourage your team to ask for a raise the right way—and empower them to make the case based on clear results, not calendar dates.

Where Does That Leave Performance Reviews?

We’re not saying ditch performance reviews completely—but evolving how you deliver feedback could transform your team’s culture. Instead of relying solely on annual sessions, consider blending more agile and human-centred approaches throughout the year.

For teams not yet ready to remove reviews altogether, introducing quarterly or bi-annual check-ins can ease the transition. Pairing these with ongoing dialogue can lead to more effective development conversations—and happier, higher-performing employees.

Next Steps for Managers and Teams

• Evaluate your current review system. Is it helping people grow—or holding them back?
• Start small. Introduce monthly check-ins or pilot a 360 tool with one team.
• Get feedback. Ask your staff what style of recognition and feedback works best for them.

Remember: performance management should be a journey, not a dreaded annual event. And when it’s done well, it strengthens trust, accountability and retention.