From Annual Performance Reviews to "Bridge Feedback"

More than 80% of employees prefer receiving regular feedback, as they believe annual performance reviews are often subjective and unfair.

Annual Performance Reviews: 6 Key Reasons Against

In a rapidly changing organizational environment, effective feedback delivery can be a critical component for organizational success. However, feedback given during annual performance reviews often causes more harm than good.

Annual performance reviews have long been a standard practice in many companies and organizations, but increasing research confirms that they frequently lead to challenges burdening both managers and employees.

1. Unpleasant Surprises

Annual performance reviews often turn out to be unpleasant surprises for employees, revealing a variety of issues and unspoken criticisms that have accumulated over the entire evaluation period.

Ratings often lack proper objective foundations, as managers run out of concrete arguments and detailed behavioral descriptions to explain them.

As many as 87% of employees report being negatively surprised by the ratings they received, which consequently reduced their engagement by 23%.

2. Stress and Anxiety Before Evaluation

Annual reviews can be quite stressful for employees and contribute to increased anxiety, especially if they do not know what to expect.

3. Time and Effort Consumption for Managers

Managers spend approximately 210 hours annually preparing and conducting annual performance reviews, with 90% of all reviews not contributing to improved results.

Thus, managers spend a lot of time and mental energy on a process that does not yield the desired effects.

4. Limitations of Feedback

Annual reviews do not allow for continuous feedback, which is essential for regular and timely alignment of expectations between managers and employees, consequently achieving a high level of continuous improvement and development of their competencies.

5. Lack of Continuity

84% of employees who received immediate feedback report greater engagement compared to only 22% of those who received no feedback in the past week.

If feedback is provided only occasionally (e.g., once a year, every six months, or quarterly), employees do not have the opportunity to continuously improve the quality of their work. Regular feedback is crucial for both career development and personal growth of employees.

Research confirms that regular, mutual, and timely feedback not only contributes to greater employee engagement but also reduces turnover and increases employee efficiency.

Organizations that promote regular and timely feedback can boast a 15% lower turnover rate among employees.

6. Impersonal Approach

Annual reviews are often overly formal and impersonal, which reduces the sense of connection between employees and managers. Employees strive for a more personal approach, which fosters a sense of psychological safety, connection, and engagement all the time, not just at predetermined intervals.

Regular and Mutual Feedback ("Bridge Feedback"): The Key to Effective Leadership

Providing feedback should not be a "one-way street." Effective leaders are characterized by both giving feedback and actively encouraging feedback from employees.

By proactively approaching feedback, when a manager first asks their team for feedback, they contribute to a culture of open communication and mutual trust.

Why the "Feedback Sandwich" Is No Longer Eatable

The traditional approach of giving so-called "sandwich" feedback (positive-negative-positive) no longer works. Employees perceive the "sandwich" method as manipulative, as it seems insincere and consequently reduces the effectiveness of the critical part of the message.

Effective Feedback in 3 Steps (CONTINUE - STOP - START)

Feedback exchange can be short, concise, and most importantly, effective.

1. What works well ("CONTINUE!"): Identify and highlight the areas where the employee/manager meets expectations. If it's working - go ahead!
2. What needs improvement ("STOP!"): Be honest about the areas where you expect improvements. If it's not working - stop it!
3. What is missing ("START!"): Encourage new ideas and approaches to improve the quality of work and efficiency of processes. Definitely work in this direction!

Mutual alignment of expectations between managers and employees is key to managing and reducing unnecessary conflicts. Clearly defined expectations and goals allow all team members to know what is expected of them and how their work contributes to the organization's overall goals.

Establish a Safe Environment

Creating an environment of trust and mutual respect is the first step to effective giving and receiving feedback:

• Establishing trust: With regular conversations that are not limited to feedback but also include discussions about employee well-being;
• Mutual connection: By getting to know employees on a personal level and understanding their unique communication styles and needs, not only do we encourage mutual connection, but we also create an exceptional organizational culture.

Final Words

Feedback is one of the most important leadership tools and a key component in strengthening an organizational culture based on mutual connection and trust.

Encouraging the exchange of regular and timely feedback is not just another good HR practice; it is a necessary step in creating an organization with engaged, efficient, and satisfied employees.

If you want to achieve better results, get better at giving and receiving feedback.

Radical Candor: Be a Kick-Ass Boss Without Losing Your Humanity

Kim Scott has a well-earned reputation as a kick-ass boss and a voice that CEOs take seriously. In this remarkable book, she draws on her extensive experience to provide clear and honest guidance on the fundamentals of leading others: how to give (and receive) feedback, how to make smart decisions, how to keep moving forward, and much more. If you manage people--whether it be 1 person or a 1,000--you need Radical Candor. Now."

―Daniel Pink author of New York Times bestseller Drive

From the time we learn to speak, we’re told that if you don’t have anything nice to say, don’t say anything at all. When you become a manager, it’s your job to say it--and your obligation.

Author Kim Scott was an executive at Google and then at Apple, where she worked with a team to develop a class on how to be a good boss. She has earned growing fame in recent years with her vital new approach to effective management, Radical Candor.

Radical Candor is a simple idea: to be a good boss, you have to Care Personally at the same time that you Challenge Directly. When you challenge without caring it’s obnoxious aggression; when you care without challenging it’s ruinous empathy. When you do neither it’s manipulative insincerity.

This simple framework can help you build better relationships at work, and fulfill your three key responsibilities as a leader: creating a culture of feedback (praise and criticism), building a cohesive team, and achieving results you’re all proud of.

"The root of every single conflict are misaligned expectations."

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