The leadership strategy that's more valuable than performance reviews
Briefly

Performance reviews create stress for employees and are typically ineffective, leaving workers frustrated and disengaged. Employers also struggle to sift through a year’s worth of performance data. The traditional reviews often pit employees against each other, detrimental to collaboration. With a shift noticed since 2016, the percentage of U.S. companies using annual reviews decreased significantly. Employees benefit more from timely, ongoing feedback, which enhances performance. Real-time feedback facilitates quicker improvements essential for today's fast-paced work cycle, making annual reviews increasingly irrelevant.
Today's employees want something different: timely, ongoing feedback that helps them improve in the moment. It's not just a more psychologically gentler approach-it also delivers results.
Real-time feedback accelerates improvement. Delayed feedback, in short, is unhelpful.
The percentage of U.S. companies using annual reviews dropped from 82% in 2016 to just 49% in 2023, according to the Society for Human Resource Management.
Annual reviews are too infrequent for the cycle of work today in most enterprises.
Read at Fast Company
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