The Future of Feedback: Moving Beyond Annual Reviews

The traditional annual performance review is losing relevance in today’s fast-paced workplace. Employees expect continuous communication, real-time feedback, and ongoing opportunities for growth, not just a once-a-year conversation. At Dominion Payroll, we’ve embraced continuous performance management, a method that strengthens engagement, develops talent, and drives business results.

Why Annual Reviews Fall Short

While they’ve been a long-standing practice, annual reviews have notable limitations:

• Managers often feel dissatisfied and constrained by the process.

• Employees may leave due to poor feedback or a lack of recognition.

• Teams can drift from organizational goals without regular guidance.

• A single conversation doesn’t foster meaningful growth or development.

Simply put, waiting 12 months to discuss performance can erode motivation and hinder productivity for both employees and managers.

The Power of Continuous Feedback

Organizations that adopt ongoing performance management see measurable improvements:

• 14.9% lower turnover among employees receiving continuous feedback.

• 23% higher profitability from engaged, high-performing teams.

• 69% of employees say they would work harder if properly recognized.

Continuous feedback provides employees with clarity on where they stand, actionable guidance, and opportunities to grow, turning performance management into a competitive advantage.

Dominion Payroll’s Approach

At Dominion Payroll, we’ve built a system around four key pillars:

1. Intentional Conversations: Regular, meaningful discussions about performance and expectations.

2. Expectation Setting: Clear milestones for new hires via a 30-60-90 day plan, establishing both short-term and long-term goals.

3. Ongoing Check-Ins: Weekly one-on-ones focused on projects, successes, and challenges.

4. Personal and Professional Development: Monthly conversations about career growth, skill-building, and professional aspirations.

“When employees consistently know where they stand, it’s easier for them to excel, engage, and take ownership of their work,”
- Shayna Cooke, Chief People Officer at Dominion Payroll.

Leveraging Technology for Better Reviews

AI tools can help managers streamline performance management without replacing the human element:

• Capture weekly notes during one-on-ones, recording achievements, challenges, and feedback.

• Use AI to synthesize these notes into a comprehensive annual review draft.

• Managers personalize and review the draft to ensure accuracy and tone.

This approach helps eliminate recency bias, ensuring the full-year performance is reflected, not just the most recent weeks.

Getting Started

For organizations ready to transition, consider: 

• Start with the end in mind: Define what successful continuous feedback looks like for employees and managers.

• Pilot small: Begin with a single team or department before scaling.

• Train managers: Delivering effective feedback is a skill that requires intentional training and support.

• Measure and adjust: Track engagement, retention, time to productivity, and goal achievement.

By taking a thoughtful approach, continuous feedback can transform performance management into an ongoing conversation that benefits employees and the organization alike.

The Benefits

Implementing continuous performance management helps organizations:

• Strengthen employee engagement.

• Retain top talent and develop internal growth paths.

• Align individual performance with organizational goals.

• Foster transparent, growth-focused relationships between employees and managers.

The shift from annual reviews to continuous feedback isn’t just a trend, it’s a pathway to building stronger, more engaged teams and driving meaningful business outcomes.

Want to learn more? Watch our webinar, The Future of Feedback: Are Annual Reviews Dead?