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Annual performance reviews are considered ineffective for several reasons:

  1. Infrequent Feedback: Waiting a whole year between reviews means employees receive feedback too late to make timely improvements.

  2. Lack of Real-Time Assessment: The annual format fails to capture ongoing progress and setbacks, leading to an inaccurate portrayal of performance.

  3. Stress and Anxiety: Surprise reviews or once-a-year evaluations can cause undue stress and anxiety for employees.

  4. Goal Misalignment: With long intervals, performance goals may become outdated and not aligned with current organizational objectives.

  5. Bias and Subjectivity: Human bias and subjectivity can taint the review process, resulting in unfair evaluations.

  6. Limited Development Opportunities: The yearly cadence hinders continuous development and learning for employees.

  7. Demotivation and Disengagement: Uninspiring or negative reviews can demotivate employees and lead to disengagement.

  8. Administrative Burden: Preparing and conducting annual reviews can be time-consuming for managers, impacting productivity.

  9. Inadequate Documentation: Waiting long periods may result in incomplete or forgotten documentation of performance events.

  10. Lack of Performance Improvement: The infrequency of reviews may hinder employees' ability to address weaknesses and improve over time.

In light of these drawbacks, great organizations are moving toward more frequent and constructive performance management approaches that promote continuous feedback and development. They have discovered intHRaction, and now you can too!

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