The Real Reason Employees Dread Performance Reviews

You do things all the time you don’t like to do. There’s a good chance that either conducting or participating in an annual performance review is one of them.

Managers often say things like:

• “They take me forever to complete.”
• “I don’t want to jeopardize the relationship by being critical.”
• “I don’t like giving tough feedback.”

Whether you’ve said something like this before or not, when someone doesn't like to do something rarely are they effective. Performance reviews are similar. When a performance review is bad, it isn't harmless, they have a cost. Said differently:

Bad performance reviews aren’t harmless, they’re missed opportunities to fuel growth and development.

This is precisely the reason most employees hate performance reviews, because they aren't helping them get better. The research backs this up.

• Only 14% of employees strongly agree that the performance reviews they receive inspire them to improve.
• According to Gallup, Only 29% of employees say their performance reviews are fair.

Clearly, there is room for improvement.

The Missed Opportunity for Performance Reviews

People want their manager to help them get better. They want feedback that’s specific, actionable, and given with care. When leaders rush through reviews or treat them as administrative checkboxes, it’s not neutral. It’s damaging. It signals that their growth doesn’t really matter.

Take Jennifer, for example. A year into her new role, she was called into a 15-minute performance review that wasn’t even on the calendar. Her manager, too busy to prepare, gave her a 3 out of 5 across every category because “no one under a year gets more than that.” She had worked hard, exceeded expectations, and liked her manager. But that review, her one chance to hear how she could keep growing, felt like an afterthought. A rushed, check-the-box review doesn’t just demotivate. It signals indifference. And indifference kills engagement faster than criticism ever could.

A check-the-box performance review doesn’t just demotivate. It signals indifference. And indifference kills engagement faster than criticism ever could.

Where Do Performance Reviews Originate?

The concept of performance reviews began during World War I, when US Military leaders created a system to identify officers for promotions based on merit rather than seniority alone.

Following the war, many retired military reentered the workforce, and in the 1920s, companies like General Electric started adopting similar methods to assess their employees’ productivity and efficiency. Eventually, performance reviews became more formalized and widespread in Corporate America thanks to the work of people like Peter Drucker.

Over the decades, performance reviews haven’t evolved significantly. For the vast majority of companies, the purpose of their performance reviews is to do two things:

1. Hold employees accountable for their output from the previous year.
2. Define compensation adjustments.

Whether you believe performance reviews should find themselves in the graveyard motel or you think they are the greatest thing since sliced bread, we can all agree that measuring performance is a part of being a professional.

How to Deliver Effective Performance Reviews

You might be heavily influenced or impacted by strict organizational standards around the structure and cadence of performance reviews. It’s important to note that there isn’t only one way to be highly effective when it comes to performance reviews.

The purpose of this column is to provide you with the best practices from highly effective leaders to help you be more successful.

1. Prepare to Elevate, Not Just Evaluate

It’s time for managers to stop winging it in annual performance reviews. You can download the Performance Evaluation Tool for free here.

I get it, you work closely with many of your employees, but take the time to gather accurate data and insights from various sources other than your own impression. The best leaders complete 360- Assessments, gather peer or even customer feedback, and look heavily at performance metrics in a variety of ways.

If the real purpose of performance reviews is to help employees improve moving forward, you must know:

All improvement starts with the truth.

You may get to the truth by simply providing your initial assessment. However, it’s more likely you get to the truth, by preparing well and getting a comprehensive view.

2. Create Development Moments, Not Annual Meetings

Imagine playing on an NFL team and only finding out how the team is doing once a year.  It would make the games less meaningful and make it challenging to determine what adjustments must be made.  Unfortunately, the annual performance review is a lot like this.

Said differently:

Managers who coach or provide feedback once a year in a performance review aren't coaching, they are practicing negligence.

The best leaders are committed to dedicated time on the calendar, with what I call “Performance Points.” While the cadence of weekly, monthly, or quarterly is important, it isn’t nearly as important as having dedicated time to review current winning behavior in a start, stop, and continue conversation.

3. End Every Review With a Next Step Forward

While reviewing the past is necessary, it’s not where growth lives.

The best performance reviews are future-focused. They set clear goals, identify development areas, and help team members see what’s possible next.

High performers already know how they’re doing. What they need is clarity on how to keep growing.

The goal of every performance review is progress, not perfection.

Before ending a performance review, seek clarity on action items and next steps.

Closing

Performance reviews aren’t going anywhere. But the way you conduct them determines whether they are a missed opportunity or a moment of impact.

When you prepare to elevate, create development moments, and establish next steps, you transform reviews from dreaded meetings into one of your most powerful leadership tools.

Performance Evaluation Tool: Want a proven tool to use before your next performance review? Download the Performance Evaluation tool for free here.

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About the Author: John Eades is the CEO of LearnLoft and The Sales Infrastructure. He was named one of LinkedIn’s Top Voices. John is also the author of Building the Best: 8 Proven Leadership Principles to Elevate Others to Success. You can follow him on Instagram @johngeades.