The days of the traditional annual or semi-annual performance review are coming to an end at many companies. These formal reviews are being replaced by more regular coaching conversations between managers and employees.
Annual performance reviews have many flaws. They often rely on vague expectations, biased evaluations, and feedback disconnected from pay. Both managers and employees frequently find them demotivating and unhelpful for improvement.
Leading companies like Accenture, Adobe, Netflix, and Microsoft have realized the traditional review process is too costly and heavy for the limited outcomes produced.
Instead, these companies are implementing ongoing systems of feedback and development. The focus is shifting from retrospective criticism of past mistakes to future-oriented coaching. Employees want clearer expectations, more frequent conversations, and coaching that aligns their goals with the organization’s mission.
For this coaching model to work, managers need retraining. Companies need to develop managers into coaches capable of frequent, quality conversations that motivate employees.
Regular check-ins, informal “quick connects”, and more formal monthly reviews are replacing the annual process. These conversations focus on constructive, strengths-based development. The goal is to engage employees and drive performance through consistent coaching, not just punish past mistakes.
For organizations looking to get the most out of their employees, the future lies in frequent coaching conversations that develop talent, not infrequent and demotivating reviews.
Performance conversations are regular, structured, face-to-face conversations between managers and their direct reports about organizational performance.
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