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Rethinking Performance Reviews

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The annual performance review season is upon us, and if you’re dreading it, you’re not alone. But here’s the thing: performance reviews don’t have to be that awkward, rushed conversation squeezed in before year-end. When done right, year-end reviews are one of the most powerful tools for driving growth, engagement, and results.

The Problem with Traditional Reviews

Most organizations still treat reviews as an annual event rather than an ongoing process. We scramble to remember what happened in Q1, rely on recency bias, and turn feedback into a formal, sterile exchange that helps no one. Research consistently shows that traditional annual reviews often decrease employee motivation rather than increase it.

What High-Performing Organizations Do Differently

The best teams have moved beyond the typical one-time review model to embrace continuous performance conversations. Here’s what that looks like:

  • Regular Check-ins Over Annual Surprises: Monthly or bi-weekly one-on-ones focused on progress, obstacles, and development create a rhythm where feedback becomes natural, not feared.
  • Forward-Looking, Not Just Backward: While it’s important to assess past performance, the most valuable conversations focus on growth trajectories, skill development, and future opportunities.
  • Two-Way Dialogue: Performance management works best when it’s a conversation, not a monologue. The best managers ask as many questions as they answer: What support do you need? What energizes you? Where do you want to grow?
  • Separated Development from Compensation: When every conversation is tied to money, people get defensive. Progressive organizations separate developmental feedback from compensation discussions, creating psychological safety for honest dialogue.

“Honest, open dialogue with your team is significant in measuring performance. When you check in routinely, you learn what causes stress and what comes with ease and enjoyment.” – Stephanie McPherson, VP of Marketing & Operations at ASG

Making Reviews Actually Useful

Whether you’re giving or receiving a review, here are practical ways to make it valuable:

  • Come prepared with specific examples, not vague generalizations
  • Focus on patterns and behaviors, not personality traits
  • Balance recognition of achievements with areas for growth
  • Create a tangible development plan with clear next steps
  • Schedule a follow-up to maintain accountability

The Manager’s Role

If you lead people, your job isn’t to be a judge; it’s to be a coach. The managers who develop the strongest teams invest time throughout the year in understanding what motivates each person, removing obstacles, and providing timely, specific feedback when it matters most.

When we build trust, maintain open communication, and genuinely invest in people’s growth, the formal review becomes a natural checkpoint in an ongoing journey, not a dreaded destination.

“Transparent, open conversations without judgment build trust, and with trust comes better work. And always give credit where credit is due.” – Stephanie McPherson, VP of Marketing & Operations at ASG

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