Monthly and quarterly reviews are known to be far more effective than annual reviews. Organisations with monthly or quarterly performance reviews outperform competitors on every measure of finance and productivity, whilst receiving positive feedback from employees at the same time.
Unfortunately, there are still many businesses who still undertake annual reviews. These reviews discuss a year’s worth of work with objectives that may no longer be relevant and can be considered as a waste of time. Annual reviews do not seem like a valuable use of time and are not frequent enough.
73% of HR leaders who work in organisations who are still using annual reviews simply do not consider them effective, but rather ineffective. Annual reviews are too infrequent to have a positive impact on performance.