Goodbye annual review, see ya performance ratings



By Jeanne Sahadi

Yet at the end of it all you have a stilted, scripted conversation with your boss, in which you learn you’re a “3” because you “met expectations.” This, despite all your manager’s happy talk during the year.

So goes the perpetually weird ritual known as the “annual review” that rates and ranks workers across a company.

The good news: Companies are starting to get just how ineffective the practice is when it comes to spurring better performance, retaining talent and boosting morale.

The review process of old is “entirely demotivating,” said Kris Duggan, CEO of BetterWorks, a creator of goal-setting software. “It’s like FitBit sending you your step count once a year. Nobody’s behavior changes.”

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