A growing number of organizations are scrapping formal evaluations in favor of more fluid feedback models. The intent may be to reduce stress, foster flexibility, or modernize the employee experience, but eliminating reviews entirely can hurt more than help. Without structured feedback and development conversations, performance suffers, growth stalls, and top performers may walk out the door.
Here’s why canceling performance reviews is the wrong move:
Employees Want Feedback, Not Ambiguity
The next generation of workers has grown up in a culture of instant feedback. They are not only comfortable with it; they expect it. Removing formal reviews doesn’t remove the need for feedback. It removes clarity and direction.
According to a Gallup study, employees who receive regular, meaningful feedback are three times more engaged and significantly more likely to stay with their employer. For high-performing, high-potential talent, silence sends the wrong signal.
In Hybrid Environments, Visibility Is Limited
Remote and hybrid models have changed how teams operate. Without in-person visibility, it becomes harder to identify performance patterns, growth opportunities, or engagement risks.
Structured reviews offer a checkpoint. They provide space to align expectations, recognize accomplishments, and correct course when needed. Especially in a hybrid model, this structure is essential for consistency across the organization.
Reviews Are a Retention Tool
Replacing a team member is expensive and disruptive. Regular performance conversations help reduce attrition and boost internal mobility. When employees understand where they stand and how they can grow, they are more likely to stay. Formal reviews also allow managers to uncover disengagement early and create personalized development plans to retain top talent.
AI Can’t Replace the Human Conversation
AI tools may help gather data and track performance trends, but they cannot replace the nuance of a one-on-one conversation. The most effective performance reviews combine data with dialogue, using insights to guide constructive, human-centered coaching. Smart companies are using AI to inform performance conversations, not avoid them.
Canceling performance reviews may seem progressive, but it can create confusion, stall development, and increase turnover. The most successful companies don’t walk away from feedback but instead refine how they deliver it.
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