Performance Reviews Are Broken (But Fixable)

Performance reviews often feel like a dreaded ritual rather than a useful tool. Many business leaders I speak with say their current review process wastes time, frustrates employees, and fails to improve performance. The truth is, traditional performance reviews are broken. But the good news is they can be fixed with clear strategies and the right support.

In this post, I’ll share practical steps to improve your performance reviews and explain how fractional HR leadership can guide your organization through this change.

Manager and employee discussing performance review

Why Performance Reviews Often Fail

Many companies use annual or semi-annual reviews that focus on rating past performance. This approach has several problems:

• Infrequent feedback leaves employees unsure about how they are doing until the review meeting.

• Subjective ratings can feel unfair or biased, damaging trust.

• One-way conversations where managers talk and employees listen, limiting honest dialogue.

• Focus on past mistakes rather than future growth and development.

  
  

These issues lead to disengagement, missed opportunities for improvement, and sometimes even turnover.

How to Improve Performance Reviews

Improving your performance review process starts with shifting the mindset from evaluation to development. Here are some steps to get started:

1. Make Feedback Continuous

Instead of waiting for a formal review, encourage managers and employees to have regular check-ins. These can be brief conversations focused on progress, challenges, and goals.

• Schedule monthly or quarterly one-on-ones.

• Use these meetings to celebrate wins and address issues early.

• Encourage two-way feedback so employees feel heard.

  
  

2. Set Clear, Measurable Goals

Goals should be specific, achievable, and tied to business outcomes. Clear goals help employees understand what success looks like and how their work contributes.

• Use SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).

• Align individual goals with team and company objectives.

• Review and adjust goals regularly as priorities change.

  
  

3. Train Managers on Effective Feedback

Many managers lack the skills to give constructive feedback. Training can help them:

• Deliver feedback that is clear, specific, and focused on behavior, not personality.

• Balance positive feedback with areas for improvement.

• Handle difficult conversations with empathy and professionalism.

  
  

4. Use Technology to Support the Process

Performance management software can simplify tracking goals, feedback, and progress. It also creates transparency and accountability.

• Choose tools that fit your company size and culture.

• Ensure the system is user-friendly for both managers and employees.

• Use data from the system to identify trends and development needs.

  
  

5. Focus on Employee Development

Performance reviews should be a chance to discuss career growth and learning opportunities.

• Identify skills gaps and create development plans.

• Offer training, mentoring, or stretch assignments.

• Encourage employees to take ownership of their growth.

  
  

Goal-setting worksheet with objectives and deadlines

How Fractional HR Leadership Can Help Fix Performance Reviews

Many organizations struggle to improve performance reviews because they lack the expertise or resources to redesign the process. This is where fractional HR leadership becomes valuable.

A fractional HR leader works part-time with your company, bringing strategic HR experience without the cost of a full-time executive. Here’s how they can support your performance review improvement efforts:

• Assess your current process to identify gaps and pain points.

• Design a tailored performance management system that fits your culture and goals.

• Train managers and employees on new practices and tools.

• Implement technology solutions that track and support ongoing feedback.

• Provide ongoing coaching and support to ensure the new process sticks.

  
  

Fractional HR leaders bring fresh perspectives and proven methods from working with multiple organizations. They help you avoid common pitfalls and build a performance review system that drives real results.

Taking Action to Fix Your Performance Reviews

If your current performance reviews feel broken, start by making small changes:

• Schedule regular feedback conversations.

• Clarify goals and expectations.

• Train managers on giving effective feedback.

  
  

Then consider bringing in fractional HR leadership to guide a full redesign. This investment can improve employee engagement, boost productivity, and strengthen your leadership team.

Performance review improvement is not just about fixing a process. It’s about creating a culture where feedback supports growth and success. With the right approach and expert help, your performance reviews can become a powerful tool for your business.