Can Continuous Performance Reviews Improve Workplace Performance?

Performance Reviews - A Complete Analysis

The Thrive Global Community welcomes voices from many spheres on our open platform. We publish pieces as written by outside contributors with a wide range of opinions, which don’t necessarily reflect our own. Community stories are not commissioned by our editorial team and must meet our guidelines prior to being published.

According to recent research, companies that implement continuous performance reviews experience 14.9% lesser rate of turnover compared to companies that engage in annual reviews. In fact, only about 8% of companies around the world believe that performance reviews add value to their business process.

The traditional annual performance management scheme has been in use for decades. While there are certain merits to its name, about 45% of global HR managers believe that it’s time to scrap the annual review system in favor of a current and more comprehensive performance management scheme.

An archaic approach

Traditional annual appraisal systems have received a lot of criticism for the limitations they pose on managers and employees. Some of the main problems with the annual system include:

v They don’t keep pace with changing work requirements

v Focus is limited to the monetary benefits that appraisals offer

v Gives way to power dynamics and work politics

v Doesn’t offer encouragement to employees for 11 months of the 12-months cycle

If considered practically, the annual system doesn’t provide flexibility for making changes in workflows and processes. Changes can only be made once the one year cycle is complete, by which time it might be too late to effect positive results.

A new approach to work optimization

The continuous performance management system seeks to plug in the gaps and supplement the work done by the annual system. The objective of this new type of performance management is to help managers and employees proactively work towards optimizing productivity and work performance.

Some of the benefits that continuous performance management system brings in are:

v Provision of timely feedback

When reviews are provided all-year-round, it becomes easier for managers to identify the mistakes in the system, processes, and technology. Employees can be provided immediate feedback and changes can be implemented with ease.

v Increased opportunities for employee development and employee engagement

Employees can work on their shortcomings and develop their strengths only when they are aware of them. Continuous performance management system allows managers to engage their personnel constantly and provide them with opportunities to expand their talents and work on their deficiencies.

v Saves operational time

Annual systems take a lot of time and effort on part of every member of the organization. Considering that reviews happen only once a year, managers are stretched for resources at the time of the annual reviews. This impacts the overall productivity of the organization. Providing reviews constantly ensure that there is a smooth flow in the operations. Tasks can be efficiently managed and changes can be implemented with ease.

v Better resource utilization

Whether it’s a concern regarding technology utilization or skills gaps, managers can schedule their resources and plug in gaps easily and effectively due to their being aware of the problems in the operational system. Productivity increases as a result.

v Improved manager-employee relationships

Continuous performance management system allows for the creation of an organizational environment that is open, honest, and transparent. Such an environment has a huge positive impact on working relationships and work performance. 

Share your comments below. Please read our commenting guidelines before posting. If you have a concern about a comment, report it here.

You might also like...


The Rise of Continuous Feedback


How to Make Employee Feedback Valuable

by Maximus Yaney
picture credit: Julian Schröpel on Unsplash

what does road rage have to do with performance management in covid-19?

by Mark Rogers

Sign up for the Thrive Global newsletter

Will be used in accordance with our privacy policy.

Thrive Global
People look for retreats for themselves, in the country, by the coast, or in the hills . . . There is nowhere that a person can find a more peaceful and trouble-free retreat than in his own mind. . . . So constantly give yourself this retreat, and renew yourself.


We use cookies on our site to give you the best experience possible. By continuing to browse the site, you agree to this use. For more information on how we use cookies, see our Privacy Policy.