{"id":787,"date":"2016-07-11T00:00:00","date_gmt":"2016-07-11T04:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/end-of-the-annual-performance-appraisal\/"},"modified":"2026-02-16T05:35:42","modified_gmt":"2026-02-16T10:35:42","slug":"end-of-the-annual-performance-appraisal","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/end-of-the-annual-performance-appraisal\/","title":{"rendered":"End of the annual performance appraisal?"},"content":{"rendered":"
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\n\t\t\t\t\t\tEnd of the annual performance appraisal?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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I\u2019ve yet to meet anyone who enjoys the annual employee review process\u2014either reviewer or reviewee. So why do we put ourselves through this yearly ritual. Some companies are electing to opt-out of the annual appraisal, considering it an archaic and ineffective employee evaluation process.<\/p>\n\n\n\n

Rob Baker, of the VeraSage Institute, is one proponent for doing away with annual performance reviews. \u201cIt\u2019s like trying to diet just on your birthday and wondering why you\u2019re not losing weight,\u201d he says. \u201cMore and more companies are realizing this (the annual review) is an enormous waste of resources that actually doesn\u2019t improve future performance.\u201d<\/p>\n\n\n\n

Don\u2019t misunderstand, evaluating employee performance is still one of the most critical components of running a successful company. Unfortunately, too many companies fall into the one-and-done mentality, where the annual appraisal is the only<\/em> time workers hear about their performance. Today employees\u2014especially millennials\u2014want more regular feedback.<\/p>\n\n\n\n

A recent Trinet Perform study conducted by Wakefield Research found that 74% of millennials surveyed feel \u201cin the dark\u201d about how their managers and peers think they\u2019re performing at work. Nearly nine out of 10 young workers surveyed said they would feel more confident in their current position if they could have more frequent performance conversations with their manager.<\/p>\n\n\n\n

Retaining top talent is a main reason companies are rethinking their evaluation process. A recent article on CMS wire describes how several top companies have abandoned once-a-year evaluations for more continuous feedback methods<\/a>. Plus, those more frequent touch base meetings aren\u2019t just one-way.  \u201cA vital result of the performance management process<\/a> is that it creates a transparent relationship between manager and employee,\u201d says the article\u2019s author Steffen Maier. \u201cIt gives everyone inside a company opportunity to speak up, enhancing the communication process.\u201d<\/p>\n\n\n\n

Developing and retaining the best talent these days is all about having a continuous conversation that motivates and engages employees. How do you evaluate your team? Especially now, when keeping qualified workers is more important than ever, it may be time to revisit the way you handle their performance appraisals.<\/p>\n\n\n

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