• Skip to primary navigation
  • Skip to main content

HRMorning

  • FREE RESOURCES
  • PREMIUM CONTENT
  • HR DEEP DIVES
  • PODCASTS
    • VOICES OF HR
    • WOMEN’S LEADERSHIP TODAY
  • LOGIN
  • SIGN UP FREE
  • Employment Law
  • Benefits
  • Recruiting
  • HR Technology
  • Payroll
  • Management
  • Women’s Leadership
  • More
    • Talent Management
    • Performance Management
    • Leadership & Strategy
    • Compensation
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans
  • Performance Management

How to Fix an Unpopular Performance Review System

Brian Bingaman
By: Brian Bingaman
  • Share on

About the Author

Brian Bingaman has been a journalist in the Philadelphia area for nearly 20 years. He was a contributing editor for ResourcefulFinancePro.com, as well as the publications What’s Working in Human Resources and What’s New in Benefits and Compensation. He first became interested in HR when he started noticing a distinct lack of human interaction from the HR department of the newspaper group where he worked. In addition, Brian has 15 years of experience in the radio broadcasting industry.

Show Less
Last Updated: March 20, 2024
4 minute engagement
How to Fix an Unpopular Performance Review System

The legacy approach to employee performance reviews is not only ineffective; it’s harmful to your employees’ morale.

During an episode of the HRMorning podcast “Voices of HR,” employee engagement expert, author, keynote speaker and leadership trainer Jason Lauritsen said traditional annual performance reviews are like sneak attacks that, more often than not, make employees defensive.

“On a very fundamental level, it actually violates the [employer-employee] relationship. It violates trust. It doesn’t make people feel valued. It doesn’t make you feel appreciated. It actually does the opposite when we do it the way that we’ve traditionally designed it,” he said.

And tying performance reviews to compensation or reduction in force decisions makes it worse. “You’re saving up this feedback to give to me in this appraisal that now is going to minimize the raise I’m going to get … or the future opportunity that I’m going to get. … It doesn’t feel right,” he said. “Decouple it from compensation. … Put them on different cycles.”

Other problems with annual performance reviews include:

  • Rater bias: Subjective numbered performance ratings often reflect the biases of the rater rather than the actual performance of the employee, Lauritsen said.
  • Missed opportunities to discuss employee development: Infrequent feedback hinders employee growth.
  • Inaccurate reflection: Once-a-year appraisals often don’t take into consideration the ongoing contributions and challenges faced by employees throughout the year.
Listen to the full episode here

A Better Approach to Performance Review

Lauritsen advocated for a shift from annual performance reviews to a culture of continuous performance management, where the assumption is that people want to succeed instead of fail. This approach entails:

  • Regular feedback: Providing ongoing coaching and feedback instead of waiting for a yearly review.
  • Manager development: Equipping managers with the skills to provide constructive feedback and foster a growth mindset.
  • Clarity of expectations: Setting clear and achievable goals at the beginning of the year and tracking progress throughout, and
  • Relationship building: Cultivating trust and rapport between managers and employees to encourage open communication. Lauritsen recommended regular, scheduled one-on-one meetings.

You can still conduct a comprehensive performance review, he said. Just format it as a narrative instead of a list of ratings scores.

“If they’re doing all of those things, when they get to the performance appraisal process … all it should ever be is sort of a year in review. … ‘Let’s talk about the wins. Let’s talk about the things that we’ve agreed that we want to work on next year. And let’s put most of our focus on how we’re going to perform next year, what our focus is going to be, what we need to learn next year.’ … Nothing should be a surprise in that appraisal,” Lauritsen said.

“If … you don’t have a lot of time, at the very, very least, encourage your managers to have some calibration conversations with their people ahead of the actual appraisal itself. … Create the appraisal almost as a documentation of that conversation.”

How HR Can Lead the Change

Because change is usually not easy, it’s going to take collaboration with key stakeholders to design a performance management system that aligns with your organization’s goals and values and adequately prepares your managers for a transition to having continuous coaching and performance conversations with their team members.

“They’re not managing machines. They are managing these growing, these developing, imperfect human beings who have needs and are facing obstacles and really want to be successful. And if they’re not, then that means there’s something going on that you need to solve for them or help them with. And when you get that shift made, things start to change,” Lauritsen said.

By embracing continuous performance management, HR can empower managers to create a work environment that fosters employee engagement and where employees are put in positions to succeed.

Watch the full episode here

Mid-Year Reviews Are Coming Up Fast.

If your process hasn’t changed, the results probably won’t either. Join HRMorning for a free webinar, Prepare for Mid-Year Reviews: How to Reset Goals, Realign Teams, and Drive Greater Results, on Wed., June 24, 2026. Sessions are available at 9 a.m., 12 p.m., and 3 p.m. EDT. Register here.

Filed under
  • Performance Management
  • Share on

Get the HRMorning Newsletter

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

  • This field is for validation purposes and should be left unchanged.
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form

Free Training & Resources

White Papers

Financial Wellness: A Key Pillar of a Comprehensive Benefits Package

Provided by Multiply

White Papers

Participation Is Not Engagement

Provided by Terryberry

White Papers

The Business Case for Maven Clinic

Provided by Maven Clinic

Webinars

From Data to Direction: Smarter Strategies for Small Business Leaders

Provided by Gallagher

SPONSORED CONTENT

HR Technology

sponsored content
The Best AI Software for HR Automation

Courtesy of G-P

Talent Management

sponsored content
Powerful Employee Retention Strategies for 2025: How to Keep Your Best People

Courtesy of PEOPLEGURU

Benefits

Health Care

Wellness

sponsored content
Proven Results: 5 Ways Teladoc Health Chronic Condition Management Transforms HR Outcomes

Courtesy of TELADOC HEALTH

Further Reading

  • Performance Management
Setting employee goals: Helpful tips and examples for your managers

Performance reviews can boost employee engagement and drive organizational success. But their effectiveness hinges on one critical element:...

  • Performance Management
Can We Talk? Where Performance Conversations Run Off the Rails

Let’s say you finally decided to talk to an employee about his performance. You’ve put it off for some time, because …...

  • Performance Management
Cure to Employee Discontent? It’s Purposeful Work and Here Are 4 Solutions

Turns out, employees are still relatively miserable at work, regardless of where they work. Employee discontent spreads across location...

  • Performance Management
Creating a promotion game plan: HR’s key to retaining promoted workers 

Promotions look great on paper – but are they all they’re cracked up to be? Recent data from ADPRI’s Today at Work report reveal...

  • Performance Management
Making Merit-Based Performance Work Better | 2-Minute Video

Merit-based performance seems like a no-brainer. But sometimes there are hidden agendas. Hidden consequences. Hidden costs. They exist w...

  • Performance Management
6 steps to take when employee insists, ‘I didn’t do anything wrong!’

Why is feedback so often met with excuses and resistance? You probably know the kind of pushback — that immediate reaction of R...

Get the latest from HRMorning in your inbox PLUS immediately access 10 FREE HR guides.

I WANT MY FREE GUIDES
HR Morning Logo
  • Facebook
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • Leadership & Strategy
  • Compensation
  • Policy & Procedures
  • Wellness
  • Staff Departure
  • HR Career & Self-Care
  • Health Care
  • Retirement Plans
  • DEI

HRMorning, part of the Rover Insights Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day's headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Powered By Rover Insights
Privacy Policy | Terms of Service
Copyright© 2026 Rover Insights
HRMorning Logo

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.