Performance appraisals are one of the most universally disliked workplace processes. Employees complain about them, managers see them as unreliable timewasters, and even some HR leaders question their value. Yet, despite widespread dissatisfaction, traditional performance reviews persist in many organizations. Why is there so much resistance, and what can managers do to ensure these systems actually drive improvement rather than waste valuable time?
The Roots of Resistance
- Perceived Unfairness and Bias
Many employees feel that performance appraisals are unfair or arbitrary. Rater bias-where managers let non-performance factors, such as personal relationships, influence ratings-remains a major issue. - Lack of Differentiation
Appraisals often fail at their core purpose: distinguishing between high and low performers. While 96% of employees, managers, and CEOs believe reviews should clearly differentiate performance, only 22% say this actually happens. - Negative Employee Experience
Reviews are often seen as “time-consuming” and “pointless.” The process can feel like a bureaucratic exercise rather than a tool for development.
Best Practices Managers
Drawing on insights from McKinsey, the Financial Times and other leading sources, here are ways to make performance management more effective and less resented:
Have Regular Check-ins: Replace annual, high-stakes reviews with regular, ongoing feedback check-ins to supplement formal reviews, allowing for real-time coaching and course correction.
Balance the “What”, “Why” and “How”: Effective reviews focus not just what employee needs to achieve (outcomes, KPIs), but also why it is important and how things may be done differently to achieve a better result.
Simplify and Clarify Ratings: Ensure rating scales are clear and easily understood and that managers agree on what the ratings mean. This makes it easier to differentiate performance and to link ratings to meaningful outcomes, such as development opportunities and rewards.
Utilise Generative AI Thoughtfully: Generative AI can help managers identify specific competencies that team members need for effective performance in a specific job role, develop self-evaluation assessments for team members to encourage self-reflection, and provide guidelines based on best practices for how to structure and deliver sensitive conversatios more effectively.
Learn Coaching Skills: Managers need to make the transition from evaluator to coach. Learning the skills to understand, coach and develop, while at the same time agreeing clear expectations, and agreeing actionable development items to improve on-the-job performance and support employee growth. This shift builds trust and makes the process more developmental.
When done right, performance reviews can become a driver of growth and engagement, rather than a dreaded annual ritual. To reclaim the value of performance appraisals, managers must focus on fairness, agility, and offer meaningful feedback through coaching rather than just judging performance.
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References
https://www.ft.com/content/3a7b7f06-901f-4389-b7a0-0da6a7bf482c
https://www.gallup.com/workplace/236396/failed-performance-management-fix.aspx
When done right, performance reviews can become a driver of growth and engagement, rather than a dreaded annual ritual. To reclaim the value of performance appraisals, managers must focus on fairness, agility, and offer meaningful feedback through coaching rather than just judging performance.
———————–
References
https://www.ft.com/content/3a7b7f06-901f-4389-b7a0-0da6a7bf482c
https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/in-the-spotlight-performance-management-that-puts-people-first
https://www.gallup.com/workplace/236396/failed-performance-management-fix.aspx
