Are Annual Performance Reviews an Outdated Practice?
Companies are moving away from these one-off events in favor of more fluid check-ins.
Almost 10 percent of Fortune 500 companies have stopped doing annual reviews, and experts expect 20 percent of Fortune 500 companies, including General Electric, to stop doing annual reviews.
Factors that call for revamping the annual review process include the amount of time dedicated to more formal procedures and the faster-paced work environment, in which what were once seen as annual goals may not be applicable after a year and trouble spots can be flagged more easily. To gather more information more quickly, companies are exploring technology to track development and keep more detailed records of conversations. Such applications also cut down on paperwork and test for managerial biases.
Companies such as GE and Accenture are piloting programs this year, following employee feedback, to see what will work best in the future. The results may call for a more casual annual conversation — or no ratings or singular discussion at all.