It’s no secret that annual performance reviews have fallen out of favor. Many of us could tell anecdotes about our experiences trying to sum up our thoughts from an entire year of work—a challenging process that is often also ineffective, and in a worst case, can sometimes do more harm than good.

The annual review model simply doesn’t align with the pace and demands of today’s workplace. Amid fast-based workflows and increasingly remote teams, employees require feedback more frequently than once a year to keep up with shifting priorities, build their skills, and stay motivated and engaged.

Jack Dorsey, co-founder of both Twitter (now X) and Block, has declared the structure of annual reviews outdated because they often mean feedback is delayed or vague, leaving employees in the dark about their performance or areas to improve.

While evidence has been amassing to make a transition away from annual reviews, it is harder to determine how to replace them. The secret? Boosting employee engagement all year round.

Feedback Should be Continuous

Increasingly, companies are shifting from reactive, once-a-year sit-downs to proactive, real-time, continuous feedback loops, making professional development and growth a topic of ongoing conversation.

Real-time feedback fosters a culture of continuous improvement and open communication, which directly impacts employee engagement. Gallup’s 2024 State of the Global Workplace Report emphasized that engaged employees are more productive and contribute to a positive workplace culture.

Adobe was among the first global companies to shift from traditional annual reviews to an ongoing feedback process. Introducing “Check-in,” a less structured approach with an ongoing, two-way conversation between employees and managers, helped the organization support individuals on their career growth and resulted in a 30% increase in employee engagement, a reduction in employee turnover, and a notable improvement in employee morale.

From Onboarding to Everboarding: Building a Feedback-First Culture

Creating a healthy company culture where feedback flows regularly requires more than just eliminating annual reviews. Hiring the right people and providing a strong onboarding experience sets the foundation for a feedback-friendly environment. Many companies, like Google or Amazon have embraced “everboarding,” a model that extends learning and development beyond an initial onboarding phase to help employees grow continuously. ”Everboarding” helps to ensure everyone has access to the resources and guidance they need, at every stage of their career. For new hires, this approach fosters a culture where learning is valued, and for seasoned employees, it provides a structure for ongoing growth and support.

The end goal is engagement. Companies that have adopted this approach find it keeps employees more aligned with team goals, reduces turnover, and cultivates stronger, more meaningful relationships with managers.

Equipping Managers for Real-Time Feedback

For an organization to make a meaningful shift away from annual reviews and into a real-time feedback model, leaders and managers must be equipped to provide constructive feedback in the moment. This requires adaptability, self-awareness and active listening –qualities which can be fostered with coaching skills.

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