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Jun 16,2025
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?
Traditionally, performance reviews have served two main purposes:
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.
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:
While feedback remains crucial, the once-a-year approach may no longer serve today’s dynamic work environments. So what’s the alternative?
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.
Short, consistent meetings foster stronger manager–employee relationships and boost communication. Weekly catch-ups help with:
They also support more approachable leadership. For tips, see our guide on how to be a manager people actually want.
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.
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.
Annual reviews have long doubled as salary discussions—but separating performance conversations from pay can improve outcomes. Here’s why:
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.
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.
Remember: performance management should be a journey, not a dreaded annual event. And when it’s done well, it strengthens trust, accountability and retention.
Jenny found her way with words while interning during uni, since, she's produced articles on it all – from hair and beauty to homewares, travel, career advice and study tips. On a weekend you're most likely to find her lining up for a table at the latest cafe or restaurant.