Dec. 6, 2019, Telegraph article, McGuireWoods London office managing partner
Daniel L. Peyton provided insight as to why most companies still do annual performance
reviews, despite their unpopularity.
In an article discussing reasons companies should replace the decades-old
annual performance review with more regular check-ins and real-time
feedback throughout the year, Peyton said that doing away with annual
reviews altogether risks losing valuable insights for those charged with
Much of the article focused on the reasons why companies such as the big
consulting firms have shifted to a new approach in the knowledge-based
economy to meet organizational goals that change more rapidly than they did
a generation or two ago.
However, Peyton pointed out that because annual performance reviews are
often linked to pay increases, companies may have a difficult time
scrapping them. Furthermore, annual performance reviews ensure that a
company has a documented assessment of “shortcomings to justify performance
management processes and also to justify the selection of individuals for
advancement, promotion, bonus or training opportunities,” he said.