Yearly performance appraisals are falling out of favour, according to a review of research evidence published by People Management. Citing a range of studies published over the past two years, the industry insight report suggests that the days of the yearly performance review are numbered as more and more employers drop formal appraisals in favour of more timely feedback.
The research suggests that there is growing evidence that poorly-executed performance management undermines organisational productivity, and that organisations would benefit by switching to continuous performance management approaches.
However, although accepting that annual performance reviews can be improved, The Economist magazine disputes the argument that the concept is busted. A comment published in the well-regarded publication argues that, if carried out consistently, rationally and fairly and supplemented with more frequent feedback, performance reviews ‘have many virtues’.