Top 3 Performance Review Trends

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As the baby boomer generation retires and the millennials enter the workforce, a dramatic shift is taking place in corporate culture. Advancing technology has also played a role in these changes. New employees have different expectations than employees of previous generations. Employee retention is becoming increasingly more difficult for organizations. This is causing many companies to reevaluate some their procedures, including the performance review process. Companies must recognize the fluctuation in corporate culture and adjust their policies accordingly. Neglecting the need for change can have disastrous results. Rigid review procedures are no longer the norm. HR professionals and business leaders are finding new ways to examine employees. These methods are more fitting for the current corporate environment. Here, we will take a look at some of the popular performance review trends.


The annual performance review process is one of the key areas in which companies are making significant changes. Some businesses are eliminating this procedure entirely. Others are simply changing how often they give performance reviews. The popular belief is that continuous feedback throughout the year is most efficient and meaningful. Rather than receiving feedback once a year, companies are encouraging more interaction between managers and employees to foster ongoing feedback. This method fits very well with the current corporate environment. Not only are employees more comfortable with this, but employers are also receiving higher quality information. It is a “win-win” situation for many organizations that have implemented this type of continuous review process.

Culture Alignment

An employee’s ability to align with company culture has become a significant quality for employers to assess. In the past, individuals would enter the workforce at a particular company and retire from that same organization. A worker today is much less likely to remain at one job for their entire career. An employee who aligns with company culture is liable to stay there for an extended period. Many companies foster a sense of community and culture by encouraging engagement, providing activities, and keeping employees informed about the business. Organizations are no longer just looking at job performance; they are also evaluating the level of involvement a worker has with the company and the overall culture. This is a strong indicator of whether or not an employee will remain with the organization. This valuable data helps businesses decide whom they should invest in and rely upon.

Technology and Analysis

Technology has provided companies with some amazing tools for performance review. Many of today’s employees feel most comfortable using technology for these evaluations. They are often more honest and open when answering questions if they are presented the inquiries in a digital format. Technology also allows organizations to acquire a tremendous amount of data by analyzing information. Detailed analysis provides invaluable information in a wide range of areas. Technology is such an integral part of our everyday lives; it is understandable why so many businesses are utilizing high-tech analytics and performance review systems.

Every organization is different and will have their unique performance review policies. What works for one company may not work for another. It is not a “one-size-fits-all” type of situation. Determining which methods are best for your enterprise will require some thought. Consider all of the options and the changing corporate culture. Take a close look at your organization and its needs. Gather information by speaking to your employees so they can tell you what works best for them.

As an HRMS provider located in the San Diego area, we have experience working with a wide variety of businesses. We often help organizations assess their current procedures and present them with numerous options. Our system has built-in modules for performance reviews. For more information, contact us today.


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