How can managers gradually progress from a once-off annual review to a more effective model of continuous feedback and a culture of performance? Firstly, giving your employees constructive feedback to let them know what they can improve on aids towards their personal development, something that we know is important to them. Likewise by accepting feedback from an employee it allows you to grow as a leader and a manager and will benefit you in the long run.
A good example of a large company migrating from annual reviews to a culture of performance is Adobe. Adobe based its decision to move away from traditional performance appraisals on the fact that the annual process required 80,000 hours of time from its 2,000 managers, the equivalent of 40 full-time employees. Additionally, their internal surveys suggested that the workforce felt less motivated and inspired after each appraisal.
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