The Problem With Conducting An Annual Performance Review

The problem with conducting annual performance reviews

The annual performance review process doesn’t have a good name. Most articles slam the entire process or offer it faintly damning praise. So why does the annual performance review get such a bad rap? The way I see it, this is because of two big issues.

It’s Annual

Yes, one of the problems with conducting the annual performance review is that it’s annual. An entire performance review just once a year. Therefore, annual performance reviews are rightly hard to sustain. To cram an entire year’s work into a two page report or a 15 minute session seems impossible and not feasible, yet, that is how it happens, which of course leads to more issues.

An annual performance review will work when in the time leading up to the review the manager has been constantly checking in with the employees, has been offering feedback etc. When all of that doesn’t happen, and all a manager has is a day or so to prepare for the process, it is understandable that the review process might proceed in a less than favorable manner. It is easier to carry out a performance review twice a year instead of just once. It reduces the burden placed upon the manager as well as the HR and it also allows the process to be more organic, thereby reducing the chance of the entire performance review process failing.

It’s Not Managed Well

This is unfortunately true of most performance review processes at organizations. Organizations see the process as important but they don’t know how to make sure that is a valuable to both the employee and the manager. Performance reviews might begin at the end of the financial year, but a good performance review process has already begun much before that.

In order to make sure that the performance review process is valuable to both the employee and the manager, from the beginning, managers need to set goals and objectives, revisit those goals and objectives monthly, conduct feedback sessions frequently, and have some method to track an employee’s progress. That is how a performance review becomes valuable. Otherwise it is just another process that we carry out in an organization.


Engagedly’s performance review module can help make the annual performance review process a lot easier for your organization. To know how it can help your organization, request a demo today!

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