4imprint, LLC

| Updated: May 10, 2022

A mere 6 percent of organizations think their performance review process is worthwhile, according to recent studies. What’s more, 30 percent of performance reviews have been shown to actually decrease employee performance.

One of the main issues with the traditional performance review system is that it only happens once a year. This has both benefits and drawbacks. Consider the following pros and cons to determine how you can make the process better for your company.

The pros of annual employee reviews

  • They ensure progress and performance are documented on a regular basis.
  • They provide an opportunity for managers and employees to have discussions they may have been putting off due to time constraints or discomfort.
  • They make employees more aware of their performance.
  • They offer an opportunity to discuss expectations.
  • They guide the upcoming plan for improvement and professional development.

Annual reviews also provide an opportunity for employee recognition. Consider giving employee appreciation giveaways, like a screwdriver kit with light, after the review. Annual reviews are also a chance to encourage your team for the future. Incentive gifts for employees, like a lightweight backpack or a duo charging cable keychain, will help encourage them to do their best in the year ahead.

The cons of annual employee reviews

  • The delay in feedback: It’s difficult to cover an entire year of feedback in one evaluation, and it’s hard for employees to make changes based on issues that occurred months ago—especially if they were unaware there was an issue.
  • The lack of details: Reviews frequently don’t reflect the full year, as managers don’t have time to document information on a month-by-month basis. That means they have to evaluate employees only on what they can remember.
  • The lack of support: Because most managers don’t like giving reviews, they don’t give the process their full attention. Often, they aren’t properly trained.
  • The potential departures: Employees who don’t get frequent feedback can start to question their role and performance. This dissatisfaction can lead them to leave a position out of frustration.

Studies indicate that employee recognition given once a week leads to increased productivity, loyalty and job satisfaction. Small gifts can also serve as feedback. Considering handing out thank-you cards to employees who go above and beyond. Steller work on a project could be rewarded with a Chocolate Star.

When you appreciate your staff, everyone wins

Next time you notice an employee doing well—tell them! Feedback, in whatever method works best for you, coupled with employee appreciation giveaways will go a long way toward creating a better working environment.