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It’s that wonderful time of year when managers suddenly remember they were supposed to be keeping track of your work, and employees are greeted with feedback that is either too vague to be useful or so brutally honest that it makes them question their life choices.

Now, here’s the thing: More companies are scrapping the traditional once-a-year appraisal in favour of real-time feedback.

In the United States alone, the percentage of companies using annual reviews dropped from 82 per cent in 2016 to 49 per cent in 2023, the Society for Human Resource Management reported. 

Instead, feedback is increasingly happening on the go, through Slack messages, quick check-ins or maybe even a casual hallway chat where your boss tells you, “Hey, great job last week!” 

In a sense, that’s a good thing. Finally, we can all move on from that tense, over-rehearsed conversation where you pretend to take notes while internally ranking your manager on a likeability scale from Michael Scott in American sitcom The Office to Miranda Priestly in the movie The Devil Wears Prada.

So, is the annual review dead? And if so, should we be celebrating or mourning its entry into the graveyard of old corporate relics, joining the likes of time clocks and overhead projectors?

THE CASE FOR ITS DEATH

The truth is, the traditional performance review was always a mixed bag.

Had a good year? Just get through this formality before the human resource personnel rubber-stamps your promotion. Had a bad year? Spend the next hour bracing yourself for the dreaded “let’s see more initiative” speech.

It’s challenging for the manager as well, having to condense a year’s worth of work into an hour-long conversation that is both fair and constructive. Straddling this line typically results in aforementioned conversation ending up as what can only be described as a feedback sandwich.

“You’re doing great … just a few – okay, maybe more than a few – things to work on … but overall, great job!” 

Real-time feedback is better just for the fact that you can also make real-time adjustments.

If you mess up in March, you hear about it in March – not in December when your boss randomly recalls that one typo from months ago and it becomes your defining moment of shame.

IS THIS BETTER OR WORSE?

Here’s the surprising part: Some people really do miss the traditional style of performance appraisal. 

For all its awkwardness, the annual review provided structure and served as a system for people to work towards milestones and targets.

It was a clear moment in the year when you could ask: “So … am I getting promoted or should I start updating my LinkedIn profile?”

Real-time feedback is great in theory, but in practice, it can feel a little chaotic. 

Some managers give lots of useful feedback frequently, while others take a more hands-off approach, assuming that their subordinates understand that "no news is good news".

It may work for some people, but for others, the lack of a structured feedback session may make them see their career progression as a marathon with no checkpoints. 

There’s also the issue of documentation.

A formal performance review gave employees a point of reference when negotiating a raise.

With real-time feedback, your entire case for a promotion might be scattered across screenshots of various emails and journal entries of offhanded “nice work” comments.

Most companies aren’t scrapping performance reviews entirely, but many are reimagining it in terms of frequency and approach.  

Whether it’s structured check-ins or a system that tracks career growth, the format may change – but at the end of the day, feedback is here to stay.

No matter what version you’re dealing with, here are some tips for both managers and employees to make the most of it.

FOR MANAGERS: HOW TO CONDUCT CONSTRUCTIVE PERFORMANCE REVIEWS

1. Make feedback an ongoing thing, not a year-end ambush.

If the only time an employee hears about their shortcomings is during their review, you’ve failed as a manager. Performance reviews should feel like a summary, not a plot twist.

2. Be specific. Don't rely on vague corporate-speak.

Saying, “You need to be more proactive” is useless. Instead, say, “I noticed you wait for tasks instead of suggesting new ideas – let’s work on that.”

The clearer the feedback, the less likely your employee is to walk out confused (or start secretly job-hunting).

3. If you’re going to criticise, offer a solution.

It’s easy to point out flaws; it’s harder to help someone fix them.

If an employee needs to improve, guide them: “Here’s what ‘better’ looks like and here’s how I’ll help you get there.”

Otherwise, you’re just demoralising them without direction.

FOR EMPLOYEES: HOW TO SURVIVE AND THRIVE AT PERFORMANCE REVIEWS

1. Come prepared. With receipts.

Don’t assume your boss remembers everything you did. Keep track of wins – big or small – and be ready to highlight them.

2. Ask for clarity.

If your review includes vague phrases such as “be a stronger team player” or “uses too many big words”, ask for details.

Try this: “Can you share an example of when I could’ve done that better?”

The more clarity you get, the less guesswork later on.

3. Know your worth, but pick your battles.

If you’re gunning for a raise or promotion, make a case based on data, not emotions.

If the review isn’t in your favour, don’t start a war on the spot. Instead, ask: “What would it take to get to the next level?”

Then follow up later with proof that you’ve done it.

THE PERFORMANCE REVIEW ISN’T DEAD, BUT IT SHOULD EVOLVE

If the new systems for real-time performance appraisal just mean that employees are permanently stuck in a never-ending loop of vague feedback, some people might start clamouring for us all to go back to that awkward, once-a-year meeting after all.

Performance reviews – annual or otherwise – should truly help us improve, not just check a corporate box. If feedback is timely, clear and actionable, nobody will miss the old-school review.

Kelvin Kao is the co-owner of a creative agency and a cafe.