Farewell Formal Reviews: Welcome to the Era of Constant Communication!

As we start to close off 2024, should you still be doing performance reviews?

Performance reviews are a complete waste of time (in my opinion).

They are demotivating, disconnected from the actual work that a company does, and everyone hates them. Both employees and managers absolutely dread this time of year. It’s a mere tick-the-box process.

Did you know that smart companies started abolishing performance reviews 15 years ago?

Perhaps this is the year you stop doing them too - think of all the person-hours and brain cells you'll save!

Now, let's talk about the infamous "bell curve." It's like forcing square pegs into round holes. No matter how awesome your team is, this system demands that some get gold stars, most get "meh," and someone gets the short end of the stick. This means that your team starts competing against each other instead of focusing on working together and crushing the competition.

If your people are doing an amazing job, tell them right away! And tell them in front of people. Acknowledge their efforts and great work. If you have to set aside time to do this, it’s just wrong.

If you want a culture of excellence, keep that feedback flowing! Make your people feel valued and help them grow continuously, not just once a year.

You can still plan for the future.

You can still brainstorm about priorities and obstacles.

You can still set goals.

But you should focus on regular one-on-one discussions instead. I believe in having regular and continuous feedback discussions where employees get praised for their hard work and commitment and where they can share their thoughts openly with management.

As for pay raises? Base them on market rates for the job and industry. Simple as that.

You don't need to give employees a grade or remind them of the mistakes they made last year. Who cares? Address the mistake when it happens and just move on!

Treat people with respect, be fair and tell them when they’ve done a good job.

Just be a good leader.