The End of the Annual Performance Review—and the Rise of Real-Time Feedback

Annual performance reviews routinely fail to motivate employees and can create anxiety, so many experts advocate frequent, real-time feedback instead—weekly or monthly check-ins and quarterly reviews—paired with coaching and clearer goals. Firms like HubSpot and e.l.f. are testing new models, while others like Microsoft have reverted to tougher approaches; AI is both a potential aid and a distraction, capable of drafting self-reviews or coaching notes but not replacing human development. The upshot is a broader move away from the once-a-year ritual toward ongoing conversations, though the old system persists in many companies.