Why annual performance reviews don't work



The annual review process is often seen by both the manager and the employee as a necessity. However, when performed correctly it can hold significant opportunity.  The annual performance reviews are dreaded by all parties, employee and manager.  It’s a fact.  The two most dreaded interactions managers have with their employees are the performance reviews and terminations.  Both of these situations deliver employee performance satisfaction.

Traditionally, performance reviews occur annually.  The discussion focuses on the written job description, goals and expectations, scored with a numerical ranking, and the elephant in the room, money.



The biggest problem with reviews is that they happen too infrequently.  Managers should address issues when they arise, not six or eight months later.  Think of a sports team: A coach doesn’t wait until the end of a season to give his players feedback.  My...

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