Performance Reviews: A Kabuki Theater Tradition

Annual performance reviews have become an unpopular tradition in the workplace. Even employers and HR professionals seem to dislike them, according to a Gallup survey that found only two out of ten employees say their employer manages their performance in a way that motivates them to do good work.

The practice originated in World War I's military ranks to determine promotions, but has since been adopted by companies with varying approaches. Over the years, reviews have shifted from being more punitive to development-focused and back again, making it difficult for anyone to agree on what they're meant to accomplish.

Despite some big-name firms, like Microsoft and Deloitte, abandoning traditional reviews in favor of continuous feedback models, many companies have returned to annual check-ins due to the pandemic. Research shows that one-third of these mechanisms worsen performance, yet they persist.

Peter Cappelli, a professor at The Wharton School, calls it 'kabuki theater' and notes that nobody is held accountable for anything related to their performance appraisals except doing them.

Experts suggest shifting from judgment-based reviews to regular check-ins where managers ask employees about priorities and areas for improvement. Ashley Goodall, an advisor, author, and former HR executive, recommends weekly or bi-weekly meetings between workers and supervisors, which can improve engagement and productivity.