Annual Performance Reviews Are Not Effective (And What to Do Instead)
Episode 32
Do annual performance reviews feel outdated, stressful, or disconnected from daily work?
Many HR leaders and managers invest time in annual performance reviews with little impact on engagement or performance. The issue isn’t effort—it’s a system that no longer fits today’s workplace.
In Episode 32 of The People Success Circle, I explain why annual performance reviews no longer work and what to do instead. You’ll hear practical, people-centered alternatives that drive better feedback, stronger relationships, and real results.
Listen in or keep reading for actionable takeaways you can use right away.
In this episode of The People Success Circle, I walk through a more effective, human-centered approach to performance management—and why traditional annual performance reviews no longer work. Here’s what we cover:
Why annual performance reviews are no longer serving employees, managers, or engagement—and why many leaders feel they’re not effective in today’s fast-moving workplace.
The real risks of relying on once-a-year feedback, including disengagement, outdated goals, and missed coaching opportunities.
How continuous performance feedback creates stronger manager–employee relationships and drives meaningful behavior change.
Practical performance management alternatives that align with modern work, including more frequent, relevant conversations.
How quarterly performance check-ins reduce surprises, keep goals current, and support growth throughout the year.
The connection between consistent feedback, trust, and employee engagement and feedback that actually improves results.
🎧 Tune in or keep reading to walk away with practical insights you can apply immediately—for yourself or the people you lead.
🔗 Helpful Links
🌐 Mindy’s website for business consulting: https://www.limerockcareerco.com
🎧 Listen to the podcast on Spotify, Apple Podcasts
Episode 32: Watch or Listen
Key Takeaways From Episode 32
Annual Performance Reviews Are No Longer Effective
After decades in HR, I’ve come to a clear conclusion: annual performance reviews are not serving employees, managers, or organizations anymore. Work changes too quickly, priorities shift too often, and expecting one conversation a year to capture performance simply doesn’t reflect reality. It’s one of the biggest reasons annual performance reviews are not effective—and why so many people leave them feeling frustrated or blindsided.
Timely Feedback Drives Employee Engagement
Performance feedback only works when it’s timely and specific. Waiting months to address challenges or recognize progress creates disengagement and resentment. Continuous performance feedback allows leaders to course-correct early, reinforce strengths, and build trust—key drivers of strong employee engagement and feedback.
Quarterly Performance Check-Ins Create Alignment
One of the most effective performance management alternatives I recommend is quarterly performance check-ins. Quarterly conversations strike the right balance: frequent enough to stay relevant, but structured enough to be meaningful. They eliminate surprises, keep goals aligned with current business needs, and ensure employees know where they stand.
One-on-Ones Are Where the Real Work Happens
Consistent one-on-ones—weekly or biweekly—are the foundation of modern performance management. These conversations focus on both the person and the work, providing space for coaching, support, and growth. When one-on-ones are protected, documented, and intentional, annual reviews become a simple recap—not a high-pressure event.
Ongoing Conversations Build Stronger Teams
Gallup research confirms what many leaders already sense: the relationship between a manager and employee is the strongest predictor of engagement. Regular, meaningful conversations—not annual events—build trust, clarity, and performance. This is how organizations move from compliance-driven reviews to people-centered leadership.
🎧 Want the full story, examples, and action steps?
Listen to the full episode of The People Success Circle for more insights on building a thriving culture that drives results.
Read the full transcript
Mindy East:
Welcome to The People Success Circle, the podcast where we talk about the people side of work—how to hire better, lead better, and create workplaces where people truly thrive. I’m your host, Mindy East, and today we’re going to talk about a sacred cow in the corporate world: the annual performance review. I’m just going to say it—I firmly believe the annual review is dead.
It’s not serving our employees. It’s not serving our leaders and managers. And it’s not serving employee engagement. Today, I’m going to tell you why—and what we should be doing instead.
Mindy East:
Let me start with this. I’ve been in human resources for over 28 years. I’ve worked for large corporations, global nonprofits, and for the last several years I’ve been an HR consultant for mid-sized and small companies. I’ve seen it all across industries and company sizes.
Here’s the truth: not once has someone come to me and said, “Mindy, I just love my annual performance review.” Not once. It’s rarely the highlight of someone’s year—neither for employees nor for the managers who have to write them. Very rarely do I see real buy-in from departments that are excited to complete annual reviews.
If you’re listening, you’re probably nodding along. Annual reviews feel burdensome, tiring, and frustrating. They take a lot of time, and leaders often aren’t even sure what to say because the conversations are so spaced out. That’s exactly why we need to talk about what’s not working—and what needs to change.
Mindy East:
I want to share when I first realized that annual reviews weren’t working anymore. Early in my career, when I worked for companies like McDonald’s and Gap, they actually served a purpose. But as the workplace evolved—with faster communication, better technology, and eventually remote and hybrid work—it became clear that these reviews were no longer effective.
They started to feel like something HR required, not something leaders believed in. And when there’s no buy-in, the process doesn’t work well.
In my last in-house HR role at a global nonprofit, we kept running into the same issue: annual reviews weren’t working. People were frustrated, and leaders knew we needed to do something different. That was the first time I clearly thought, the workplace has changed too much—we can’t keep doing something this archaic.
Mindy East:
When I started consulting, leaders would bring me their performance review forms and ask for feedback. Over and over again, those reviews were filled with conversations that should have happened months earlier. I’d tell them, “You can’t bring something up for the first time in an annual review.”
Their response was usually, “Well, when was I supposed to bring it up?” And that’s the problem. Companies have relied on annual reviews for so long that people don’t know what to do instead. Feedback gets saved up until it’s too late to address effectively.
Without structure for ongoing feedback, leaders wait until the annual review—and by then, the information is outdated. Goals were often set a year ago and no longer reflect the work employees are actually doing. That makes it incredibly difficult to write a review that truly represents someone’s performance.
Mindy East:
And then it hit me. We are putting an incredible amount of pressure on a single conversation that happens once a year—in a world that changes weekly.
That just doesn’t make sense anymore.
Mindy East:
Let’s break this down. The reasons annual performance reviews don’t work anymore are pretty clear.
First, they’re simply too far apart to matter. Work changes every week. Priorities shift every month. Goals pivot and business needs evolve. One conversation a year cannot keep up with the pace of today’s workplace. It’s like trying to steer a ship but only touching the wheel once every 12 months.
Second, goals become outdated. Many goals set in January are irrelevant by April. By the time the annual review comes around, the goals being reviewed often have very little to do with what the employee actually spent the year doing.
Third, human memory is flawed. Managers don’t remember the entire year—they usually remember the last 30 to 60 days. That turns the annual review into a “have you done for me lately?” conversation, whether we intend it to or not.
Fourth, employees often feel blindsided. I’ve had countless employees tell me they were surprised by what came up in their review. People walk into annual reviews hopeful and walk out confused or frustrated because issues were never discussed throughout the year.
And finally, annual reviews don’t change behavior. Feedback only works when it’s timely and specific. Waiting 12 months to address something is a recipe for resentment, disengagement, and ongoing performance issues.
Mindy East:
Before we throw out the entire performance management system, let’s ground ourselves in what reviews are actually supposed to do.
Performance reviews are not meant to fill out a form or check a box for HR compliance. They’re meant to keep employees engaged, support career growth, course-correct early, improve management, and align individual work with business goals.
Employees want to know how they’re doing and where they stand. They want to talk about growth, skills, and what comes next. These conversations are one of the strongest retention tools we have.
Gallup research backs this up. The single biggest predictor of employee engagement is the relationship between an employee and their manager—and that relationship is strengthened through ongoing, meaningful conversations, not annual events.
Mindy East:
One of my favorite Gallup findings is this: employees who receive weekly meaningful feedback are three times more likely to be engaged. Weekly—not yearly. Meaningful—not complicated.
So if the annual performance review is dead, what do we do instead?
Mindy East:
Here’s what I recommend as a modern performance management system—something I’ve seen work across industries and company sizes.
Layer one: quarterly performance check-ins. Quarterly is the sweet spot. These conversations cover goals, wins, strengths, challenges, coaching needs, career aspirations, and what’s coming next. Quarterly check-ins eliminate surprises, build trust, and keep goals aligned with reality.
Layer two: semi-annual reviews. This is optional. For organizations not ready to move straight to quarterly, twice a year can be a powerful middle ground that still provides structure and consistency.
Layer three—and this is where the real magic happens—weekly or biweekly one-on-ones. These are not casual hallway check-ins. They are intentional, agenda-driven conversations focused on both the person and the work. They should be documented and protected on the calendar.
Consistent one-on-ones catch issues early, support wellbeing, remove roadblocks, and build genuine trust. When done well, the annual review becomes a simple recap of conversations you’ve already had all year.
Mindy East:
Even if your company still requires annual reviews, you can add quarterly check-ins and consistent one-on-ones. You can create a simple one-page quarterly review focused on goals, alignment, and feedback. You can document conversations throughout the year.
When you do this, the annual review becomes a formality—not a high-pressure event.
The real work happens continuously. And that’s what actually improves performance and employee engagement.
Mindy East:
People don’t need a perfect manager. They need a present manager.
I’ve seen this work firsthand. In one company I consult, we moved from only annual reviews to quarterly check-ins, effective one-on-ones, and 30-60-90 day check-ins for new hires. Turnover dropped. Engagement increased. Alignment improved. It became part of how they operate—and the business thrived because of it.
Mindy East:
Whether you have full control over your performance process or none at all, you can still create a culture of continuous growth. You don’t have to wait until January to have a meaningful conversation.
I challenge you to start today.
If this episode resonated with you, share it with a fellow leader or HR partner. If your organization needs help building a modern performance management system that truly engages people, reach out to me and my team at Lime Rock Consulting.
Thank you so much for listening, and I’ll see you next week on The People Success Circle.
