Why ditching annual staff reviews DOESN'T work

Moving away from the annual performance review is a hot trend in HR right now.

But what is the reality for organisations who have ditched the traditional evaluation?

Companies that have jettisoned formal evaluations are seeing declines in the quality of managerial feedback, top performers’ dissatisfaction with pay differentiation, and reduced employee engagement, according to a recent study by research and technology company CEB – Forbes reports.

“I’ve experienced HR managers coming to me for advice, feeling lost after ditching the annual performance review, because they didn’t have a new performance system in place,” says Tom Haak, Director of the HR Trend Institute.