Companies Replace Annual Reviews With Continuous Feedback Systems

Corporate performance management is shifting away from traditional annual reviews, which critics argue trigger anxiety and fail to motivate employees. While some firms like Microsoft returned to rigid annual models following the pandemic, other organizations are adopting continuous feedback systems to prioritize dynamic support over static judgment.

HubSpot has replaced annual reviews with quarterly check-ins and an AI-driven employee impact explorer to track activities. Similarly, e.l.f. Beauty has eliminated traditional reviews entirely, implementing a high-performance teamwork framework that encourages real-time healthy conflict.

Experts warn that while AI can streamline the administrative burden of appraisals, it risks automating the interpersonal support necessary for genuine growth. Some observers suggest that AI may create a generation of copy-paste appraisers, while others characterize many existing corporate appraisals as a kabuki exercise where managers are held accountable for completing the forms rather than the quality of the performance management.