The Shift from Annual to Ongoing Performance Reviews

I stopped performing annual reviews. 99% of the time they don’t increase actual performance.  Give me 2 minutes. I'll show you what I did instead: 👇 𝗦𝗵𝗶𝗳𝘁 𝗬𝗼𝘂𝗿 𝗠𝗶𝗻𝗱𝘀𝗲𝘁 • Break free from traditional annual reviews. • Be a year-round coach, not a once-a-year judge. • Continuous feedback, like a sports coach, is key. 𝗔𝗹𝗶𝗴𝗻 𝗚𝗼𝗮𝗹𝘀 • Avoid misalignment with clear, measurable goals. • Limit to 3 major goals. • Employees set personal goals aligning with these. • Focus: 80% on these goals, 20% on everything else. 𝗠𝗮𝘅𝗶𝗺𝗶𝘇𝗲 𝟭𝘅𝟭 𝗠𝗲𝗲𝘁𝗶𝗻𝗴𝘀 • Essential for ongoing feedback. • Ideal timing: 60 minutes every two weeks. • Discuss progress on top 3 goals. • Address blockers & celebrate successes. 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗖𝗵𝗲𝗰𝗸-𝗜𝗻𝘀 • Extend a regular 1x1 to 90 minutes quarterly. • Explore the employee’s broader career aspirations. • Discuss quarterly performance. • Checkin on personal development (see next) 𝗘𝗺𝗽𝗵𝗮𝘀𝗶𝘇𝗲 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 • Traditional reviews list too many improvement areas. • Focus on ONE key area for yearly improvement. • Agree on the area together. • Review progress in quarterly sessions.    👇 𝗕𝗼𝗻𝘂𝘀 𝗧𝗶𝗽𝘀 For 𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: 1. Make every 1x1 a coaching opportunity. 2. Consistently give feedback or praise. 3. Avoid canceling 1x1s – they're crucial. 4. Repeated mistakes may indicate a poor fit. 5. Link bonuses to both company and individual goals (50/50 split). Ditch the bureaucracy and transform performance management into a tool for real feedback and personal growth! 📈 _____ Enjoy this? Repost to your network and follow me Scot Chisholm for more! 📌  P.S. I'm writing about how to delegate like a pro this Friday to all my newsletter subscribers. Sign up here: scotchisholm.com  

Annual reviews are dead. Continuous feedback is the future. Traditional performance reviews are too slow, too vague, and too disconnected from day-to-day work. Companies that stick to outdated models risk disengagement, misalignment, and missed opportunities. Real-time feedback drives agility. Employees need immediate insights to course-correct and build on strengths. Waiting months for performance discussions means losing momentum and delaying growth. Companies that embrace continuous feedback create a culture of responsiveness and adaptability. Engagement skyrockets when feedback is ongoing. Employees who receive frequent, constructive input feel more valued and supported. This translates to stronger motivation, higher productivity, and greater job satisfaction. Annual reviews often feel punitive; continuous feedback fosters development. Alignment improves across teams and leadership. When feedback flows regularly, employees stay connected to company goals. Leaders can address performance gaps before they become major issues, ensuring teams stay on track and high performers receive the recognition they deserve. Retention benefits from a culture of real-time recognition. Employees leave when they feel unseen or unappreciated. A continuous feedback loop reinforces value, supports career growth, and reduces turnover. The transition isn’t just about HR—it’s a cultural transformation. Organizations must train managers to give meaningful feedback, integrate feedback tools into workflows, and shift mindsets from evaluation to development. This isn’t a trend; it’s a strategic necessity. Learn more at https://buff.ly/4i24NfX

Managers, how can you build trust with employees during performance appraisals? YOU CAN'T. In fact, your employee appraisal process creates the appraisal resentment and mistrust you’re trying to avoid! Approximately 90% of the tens of thousands of managers I've worked with globally tell me they don't do any pro-active, intentional observation (remote observation or in the field). In fact, a Forbes study reported that only 13% of employees agree that the performance reviews they receive inspire them to improve and wasn't a true indicator of performance. Granted, there are some industries, such as pharma, where intentional observation in the field is part of their sales culture. When I ask most companies how they evaluate performance, I hear, "I look at the data, activity and results." Then, stop calling it a PERFORMANCE review and call it what it is; a RESULT review. How can a manager review performance if they're not observing their people perform? And why is this only done once or twice a year? Assumptions are then made around WHAT they're doing in activity, and how they're doing things, based on their results. The cost is, bias, a negative work environment, ineffective, subjective guidance from the manager and the erosion of morale and trust. Here are six alternatives to the dreaded annual performance review: 1. Focus on accomplishments and goals to reinforce desired behavior. 2. Have more frequent reviews. Rather than one or two formal performance reviews a year, consistent coaching and feedback is the conduit to better performance and NEVER stops, making the reviews more valuable, relevant and personal. If the review comes as a shock to your employee, that's an indication of a lack of effective, consistent coaching and communication. 3. Get more input. Ask for feedback on you and your management style, and what they need most from you. The performance review goes both ways, which builds trust. 4. Replace formal review with casual feedback. This can only happen if your observing what they're doing. 5. Separate feedback from compensation. 6. Review the review. Assess with your employee the process, what they'd like to see improved or changed in the process, and how valuable it was. #performanceappraisal #management

Hot take: Annual performance reviews are outdated. Real growth comes from ongoing feedback and development. It's time to swap yearly reviews for regular check-ins. Growth can't wait a whole year. It's about knowing where you stand today, not last year. When you opt for continuous feedback, you're choosing progress over tradition. It’s about helping each other improve every day. Yearly reviews? They’re outdated. Continuous feedback? That’s timely. So, when it's review time but the feedback feels old, it's time for a change. Regular feedback helps keep the goals and progress clear. Companies, let’s make feedback a routine, not an event. It’s about creating a culture where feedback is welcomed, not feared. The payoff? A team that grows together, learns together. And that, is the way forward. For everyone involved. Let’s shift from the rigid annual review to a more flexible, ongoing feedback system. It’s about growing together, every step of the way.

Teams with continuous feedback programs show 23% higher profitability and 18% greater productivity than those relying on outdated annual performance reviews. AI ALPI research has uncovered a critical shift in top-performing HR departments. While 76% of organizations still rely on annual reviews, market leaders are leveraging technology-enabled continuous feedback loops that drive real business outcomes. → Weekly micro-feedback sessions are replacing quarterly or annual reviews, creating psychological safety and real-time course correction ↳ This approach reduces employee anxiety and creates 3x more actionable insights than traditional methods → AI-powered tools now enable performance tracking without the administrative burden ↳ HR leaders implementing these systems report 42% reduction in management time spent on performance administration → Human-centered leadership training has become a critical enabler ↳ Organizations investing in empathy-driven feedback skills see 37% higher retention rates among high performers Companies that implemented continuous feedback systems initially saw a temporary 15% drop in satisfaction as managers adjusted to more frequent, meaningful conversations. By month three, both engagement and productivity metrics surpassed previous levels by significant margins. 🔥 Want more breakdowns like this? Follow along for insights on: → Getting started with AI in HR teams → Scaling AI adoption across HR functions → Building AI competency in HR departments → Taking HR AI platforms to enterprise market → Developing HR AI products that solve real problems #ContinuousFeedback #HRTech #FutureOfWork #LeadershipDevelopment #PerformanceManagement