Annual performance reviews have dominated the HR landscape for decades. In recent years, though, questions have been raised about the effectiveness of annual performance reviews, due to the time strain they pose on leadership and the outcomes achieved (or lack thereof).
According to a study from CEB, a management research firm, 95 percent of managers are dissatisfied with their companies’ performance review methods, and 90 percent of HR professionals believe that the annual performance review process does not produce accurate information—leaving many in search for better methods. This realization has led some companies to get rid of annual performance reviews in favor of more frequent check-ins with their employees, including high-profile companies like GE, Accenture, Adobe, Gap and Medtronic.
Why Companies Are Giving up Annual Performance Reviews