--- title: Are Annual Performance Reviews So Last Century? description: Find out four reasons the annual performance review doesn't work and what employers should do in the 21st century that works much better. image: https://blog.axcethr.com/hubfs/dec%2027%20blog%20image%202.webp --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - 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By [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) on [Jan 02, 2020](https://blog.axcethr.com/are-annual-performance-reviews-so-last-century) 3 min read [0 comment(s)](https://blog.axcethr.com/are-annual-performance-reviews-so-last-century#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/are-annual-performance-reviews-so-last-century](whatsapp://send?text=https://blog.axcethr.com/are-annual-performance-reviews-so-last-century) - [mailto:?subject=Are%20Annual%20Performance%20Reviews%20So%20Last%20Century?&body=https://blog.axcethr.com/are-annual-performance-reviews-so-last-century](mailto:?subject=Are%20Annual%20Performance%20Reviews%20So%20Last%20Century?&body=https://blog.axcethr.com/are-annual-performance-reviews-so-last-century) ![dec 27 blog image 2](https://blog.axcethr.com/hs-fs/hubfs/dec%2027%20blog%20image%202.webp?width=840&name=dec%2027%20blog%20image%202.webp) Annual employee performance reviews have had their day in the sun for decades. But it may be time for the sun to set on that tired, old workplace staple. Employee performance reviews lack true value to companies because: ## **Why Annual Performance Reviews Are Falling Short in Today's Workplace** ### **Nobody remembers details about what employees did well or poorly months ago.** When performance reviews only happen once a year, work product from 10 or more months ago is a distant memory. So, reviews end up focusing on recent activity alone. Employees don’t get a broad view of what they could have been doing better throughout the year. The company hasn’t benefited, either, from improved work quality, behaviors and productivity employees could have been delivering for months if they had known what management wanted them to do differently. ### **Employees may feel blindsided.**  If there are details a manager does remember from months before, they likely involve a situation in which an employee made a major misstep – something that put a customer relationship at risk or required others to jump in and fix the problem, for example. But if the situation wasn’t addressed with the employee when it happened and the employee has performed well since then, the employee may have the sense that the gaffe has essentially been forgotten or that recent work has made up for it. Then, when it’s brought up in the annual review, the employee may feel sucker-punched, that the “old news” is still being held against him and that more recent, improved performance hasn’t been recognized. ### **They have limited value in developing employees.** If an employee gets key feedback only through an annual review, it does little to enhance his or her career and personal growth. It also means that managers may be consistently annoyed by behaviors the employee doesn’t even recognize as detrimental or that the company is missing a chance to build loyalty by regularly expressing how much the employee’s contributions are appreciated. ### **They create stress.** We all like and need feedback, but getting it only once a year puts a lot of pressure on that one meeting and on the people who prepare for and participate in it. [![seven reasons up to date job descriptions are a must](https://no-cache.hubspot.com/cta/default/2652187/f157977d-d690-4d16-94e8-b7aa0a1d5d23.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/f157977d-d690-4d16-94e8-b7aa0a1d5d23) ## What Should 21st-Century Reviews Look Like? Consider sending annual performance reviews off into the sunset and instead beginning the practice of managers meeting with associates regularly throughout the year. Regular performance discussions: ### **Let managers and employees focus on what is and isn’t working well.** Address both small and large issues while they’re top of mine and create accountability. Ongoing conversations allow managers to easily check on progress toward change and express the company’s appreciation for the employee’s efforts. ### Allow managers to get to know their employees as people. Understanding associates’ motivations, personal goals and areas of passion allows managers to help them see where they best fit within the organization, communicates the company’s desire to help employees be successful and ultimately helps the company retain high-quality people. ### Are less intimidating than annual reviews are. Performance dialogues that happen regularly are far more comfortable and less fraught with anxiety. They dramatically reduce the potential for surprise. Done correctly, they can become natural, two-way conversations that build trust and align employees with company goals. Annual reviews have also become synonymous with annual pay increases at many companies. While you may wish to continue providing employees with increased compensation each year, regular performance discussions allow you to tie a pay bump to specific performance goals. Rather than viewing an increase as an annual expectation, consistent conversations about performance will help employees understand how their work product is being evaluated and how their progress toward agreed-upon goals moves them toward increased pay. ## [![Talent management consulting for small businesses by Axcet HR Solutions](https://no-cache.hubspot.com/cta/default/2652187/interactive-189247610683.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLLY09F8MLbp69NZolQAwFiqc9JI%2BzCnmIJu1zObVakfO%2Fj7DRj57KMGMerl90EZsTiFzy8QuATHW5rHalEcygibeTgwtxu9R9E4DdIO4DOQau8w%2F0Er8EJXf8EZ0tZSEuZzvdJt29EQqzlbr3GNe3S%2FyVjtXM18CNsWR26vmCh0fqcTz1TZ3PFGHKSRAkveX%2FdgP%2Fqi%2B%2BiL%2BrunJt1A6B4xVfLgXAmJhcpb7pM17myK2vHKkYmWTdy770lrQ10gQrxawr6EKG5K5dHc8f9C1aJaxb7MOCDjq0k%3D&webInteractiveContentId=189247610683&portalId=2652187) ## Rethinking Annual Reviews in the Era of Real-Time Feedback Annual performance reviews have long been a standard practice in many organizations. However, their effectiveness is increasingly being questioned. These infrequent evaluations often fail to provide timely feedback, leaving employees unaware of areas needing improvement until it's too late. Moreover, they can create unnecessary stress and may not accurately reflect an employee's performance over the entire year. In today's fast-paced work environment, where continuous development and real-time feedback are valued, it's essential to reassess traditional performance management practices. Is your organization ready to move beyond outdated performance reviews? Axcet HR Solutions offers expert guidance to help you implement modern performance management strategies that foster growth and engagement. Visit [axcethr.com](https://www.axcethr.com/) to learn how we can support your transition to a more effective performance evaluation system. [![HR Headaches? Our Comprehensive HR Solutions can Help you Gain 40 Percent of Your Time Back.](https://no-cache.hubspot.com/cta/default/2652187/8425fef4-9497-4c72-8bdc-d148d0bb94c6.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/8425fef4-9497-4c72-8bdc-d148d0bb94c6)   [![Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Jeanette-04.jpg?width=80&height=80&name=Jeanette-04.jpg)](https://blog.axcethr.com/author/jeanette-coleman) Written by #### [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) Jeanette Coleman, SPHR, SHRM-SCP, is the Director of Human Resources at Axcet HR Solutions, where she has contributed her expertise for over 21 years. As a leader in the HR industry, she holds advanced certifications as a Senior Professional in Human Resources (SPHR) and SHRM-Senior Certified Professional (SHRM-SCP). Jeanette oversees HR strategy and operations, ensuring Axcet delivers exceptional HR services that help small and mid-sized businesses stay compliant and grow. With a Master’s degree in Human Resource Management from Keller Graduate School and a Bachelor of Science in Business Administration from Kansas State University, Jeanette is well-equipped to lead and support clients in navigating complex HR challenges. Throughout her 15-year tenure as Director of Human Resources, she has been instrumental in positioning Axcet as the Midwest’s largest and premier Professional Employer Organization (PEO). Her previous roles at Axcet include Director of Employee Benefits and Senior HR Consultant, where she gained extensive experience in HR outsourcing, and employee risk management. Jeanette’s expertise has been recognized through industry and regional publications. She co-authored the article “High-Touch in the Age of High-Tech: How PEOs Can Embrace AI Without Losing Their Humanity” (https://peoinsider.org/articles/high-touch-in-the-age-of-high-tech-how-peos-can-embrace-ai-without-losing-their-humanity/) for PEO Insider (March 2026), alongside Jo McClure, and was featured in Ingram’s Magazine in a Q&A (https://ingrams.com/article/qa-with-jeanette-coleman/) discussing generational change, technology, and workplace culture. These contributions reflect her perspective on balancing innovation with the human side of HR. Jeanette’s leadership reflects her deep commitment to helping businesses thrive through strategic, compliance-driven HR solutions. Through her writing, she shares insights on HR strategy, compliance, and best practices to help employers confidently manage their workforce. Published in: PEO Insider and Ingram's Read more [View all posts →](https://blog.axcethr.com/author/jeanette-coleman) ### Get HR Updates ### Table of Contents ### Related Resources - [services Human Resources](https://www.axcethr.com/services/human-resources/) #### [Taking Time to Rethink PTO ![](https://blog.axcethr.com/hubfs/jan%206%20blog%20image%203.webp)](https://blog.axcethr.com/taking-time-to-rethink-pto) #### [![dec 27 blog image](https://blog.axcethr.com/hubfs/dec%2027%20blog%20image.webp) Four Reasons to Offer Employee Health Benefits (Even if You Aren't Legally Required)](https://blog.axcethr.com/four-reasons-to-offer-employee-health-benefits-even-if-you-arent-legally-required-to) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateModified" : "2025-05-16T19:40:59.422Z", "datePublished" : "2020-01-02T13:30:00.000Z", "headline" : "Are Annual Performance Reviews So Last Century?", "image" : [ "https://blog.axcethr.com/hubfs/dec%2027%20blog%20image%202.webp" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/are-annual-performance-reviews-so-last-century", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. 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But it may be time for the sun to set on that tired, old workplace staple. Employee performance reviews lack true value to companies because: Why Annual Performance Reviews Are Falling Short in Today's Workplace Nobody remembers details about what employees did well or poorly months ago. When performance reviews only happen once a year, work product from 10 or more months ago is a distant memory. So, reviews end up focusing on recent activity alone. Employees don’t get a broad view of what they could have been doing better throughout the year. The company hasn’t benefited, either, from improved work quality, behaviors and productivity employees could have been delivering for months if they had known what management wanted them to do differently. Employees may feel blindsided. If there are details a manager does remember from months before, they likely involve a situation in which an employee made a major misstep – something that put a customer relationship at risk or required others to jump in and fix the problem, for example. But if the situation wasn’t addressed with the employee when it happened and the employee has performed well since then, the employee may have the sense that the gaffe has essentially been forgotten or that recent work has made up for it. Then, when it’s brought up in the annual review, the employee may feel sucker-punched, that the “old news” is still being held against him and that more recent, improved performance hasn’t been recognized. They have limited value in developing employees. If an employee gets key feedback only through an annual review, it does little to enhance his or her career and personal growth. It also means that managers may be consistently annoyed by behaviors the employee doesn’t even recognize as detrimental or that the company is missing a chance to build loyalty by regularly expressing how much the employee’s contributions are appreciated. They create stress. We all like and need feedback, but getting it only once a year puts a lot of pressure on that one meeting and on the people who prepare for and participate in it. What Should 21st-Century Reviews Look Like? Consider sending annual performance reviews off into the sunset and instead beginning the practice of managers meeting with associates regularly throughout the year. Regular performance discussions: Let managers and employees focus on what is and isn’t working well. Address both small and large issues while they’re top of mine and create accountability. Ongoing conversations allow managers to easily check on progress toward change and express the company’s appreciation for the employee’s efforts. Allow managers to get to know their employees as people. Understanding associates’ motivations, personal goals and areas of passion allows managers to help them see where they best fit within the organization, communicates the company’s desire to help employees be successful and ultimately helps the company retain high-quality people. Are less intimidating than annual reviews are. Performance dialogues that happen regularly are far more comfortable and less fraught with anxiety. They dramatically reduce the potential for surprise. Done correctly, they can become natural, two-way conversations that build trust and align employees with company goals. Annual reviews have also become synonymous with annual pay increases at many companies. While you may wish to continue providing employees with increased compensation each year, regular performance discussions allow you to tie a pay bump to specific performance goals. Rather than viewing an increase as an annual expectation, consistent conversations about performance will help employees understand how their work product is being evaluated and how their progress toward agreed-upon goals moves them toward increased pay. Rethinking Annual Reviews in the Era of Real-Time Feedback Annual performance reviews have long been a standard practice in many organizations. However, their effectiveness is increasingly being questioned. These infrequent evaluations often fail to provide timely feedback, leaving employees unaware of areas needing improvement until it's too late. Moreover, they can create unnecessary stress and may not accurately reflect an employee's performance over the entire year. In today's fast-paced work environment, where continuous development and real-time feedback are valued, it's essential to reassess traditional performance management practices. Is your organization ready to move beyond outdated performance reviews? Axcet HR Solutions offers expert guidance to help you implement modern performance management strategies that foster growth and engagement. Visit axcethr.com to learn how we can support your transition to a more effective performance evaluation system.", "author" : { "@id" : "https://blog.axcethr.com/author/jeanette-coleman#author", "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateCreated" : "2020-01-02", "dateModified" : "2025-05-16", "datePublished" : "2020-01-02", "description" : "Annual employee performance reviews have had their day in the sun for decades. But it may be time for the sun to set on that tired, old workplace staple. Employee performance reviews lack true value to companies because: Why Annual Performance Reviews Are Falling Short in Today's Workplace Nobody remembers details about what employees ...", "editor" : "Jeanette Coleman, SPHR & SHRM-SCP", "genre" : "Human Resources and Employee Management", "headline" : "Are Annual Performance Reviews So Last Century?", "image" : "https://2652187.fs1.hubspotusercontent-na1.net/hubfs/2652187/dec%2027%20blog%20image%202.webp", "keywords" : "Human Resources, performance reviews, are performance reviews effective, best practices for performance reviews, Employee Relations, annual performance review, annual performance review disadvantages, performance review, employee performance reviews, performance review trends", "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/are-annual-performance-reviews-so-last-century", "@type" : "WebPage" }, "publisher" : { "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hs-fs/hubfs/axcethr_logo_white.png?width=225&name=axcethr_logo_white.png" }, "name" : "Axcet HR Solutions" }, "url" : "https://blog.axcethr.com/are-annual-performance-reviews-so-last-century", "wordCount" : "4887" } ``` ```json { "@context" : "https://schema.org", "@type" : "BreadcrumbList", "itemListElement" : [ { "@type" : "ListItem", "item" : "https://www.axcethr.com/", "name" : "Home", "position" : 1 }, { "@type" : "ListItem", "item" : "https://insights.axcethr.com/", "name" : "Insights", "position" : 2 }, { "@type" : "ListItem", "item" : "https://insights.axcethr.com/tag/human-resources", "name" : "Human Resources", "position" : 3 }, { "@type" : "ListItem", "item" : "https://blog.axcethr.com/are-annual-performance-reviews-so-last-century", "name" : "Are Annual Performance Reviews So Last Century?", "position" : 4 } ] } ```