Dread. That’s the feeling many employees get in the lead-up to their annual performance review.
I’ve had plenty of conversations with friends panicking over them. No matter how long they’ve been in a role or how good they know they are at it.
There’s something about sitting down and formally discussing their performance over the year that makes people sick to their stomachs.
While businesses can’t completely eradicate this feeling, there are steps they can take to make the process better. Not just for employees’ mental health, but also for getting the most out of the annual performance review process and their employees.
Have regular check-ins
Rather than having one big check-in after 365 days, have regular ones throughout the year instead. This will make them shorter, more focused, and reduce anxiety as they become part of everyday work.
It also means that when you’re discussing something that’s happened, it’s fresher in everyone’s minds. That makes it easier to look back on and learn from issues, versus a single annual performance review.
It’s not just about using these sessions for feedback—they also help make managers more accessible to employees. This puts everyone at ease when they have meetings together.
Make feedback a regular occurrence
Whether you use radical candor, constructive criticism, or another technique, the more you make feedback a regular part of the business, the less anxious employees will feel about their annual performance review. And the less there will be to cover when that time of year rolls around.
A third of employees want regular feedback outside of an annual performance review. By providing them with that, you ensure that they continue to grow and improve throughout the year. Likely at a faster pace, too, because they can adapt what they’re doing sooner.
In any review, ensure there’s a balance of positive and negative feedback. That way employees don’t feel like they’re constantly being criticized.
When we only receive negative feedback, it can make us worry that we can’t do anything right and we’re not good enough in a role. This is particularly true if we lack confidence or are newer in our careers.
Positive feedback and recognition go a long way toward making employees feel appreciated and supported in the workplace.
Share the agenda in advance
Whatever you can do to reassure employees that their annual performance review isn’t a bad thing can mean that review season doesn’t cause anxiety or stress.
Sharing a clear plan or outline for the session in advance, for example, makes it so employees know what will be covered. That way, they’re not walking into the discussion blindly.
Preparing employees for conversations makes the whole thing less stressful. It’s often the fear of the unknown that can trigger anxiety. People can prepare talking points and responses, making the process more accessible for those who don’t think well on the spot.
The clear outline for the conversation also keeps the meeting focused and ensures you cover everything.
Make it a two-way conversation
In one of my previous roles, my annual performance review was not, in fact, a performance review.
I sat with my manager and they told me what I needed to do for the next 12 months. There was no room for me to speak, no analysis of what I’d done, and my opinion didn’t matter.
Despite all that “effort”, none of what was listed for my future priorities got done. Everyone forgot about the reviews the following day, and it was back to business as usual.
To get the most out of employees, it’s important for them to feel heard. Making their annual performance review a two-way conversation is a really simple way to do this.
After all, it’s about them. So why wouldn’t you ask for their opinion? For what they think they could do better, and what they want to achieve going forward?
Create a clear goal—together
If an employee isn’t onboard with their performance goals, they’re not going to put as much effort into achieving them. That’s why it’s important that their annual performance review is a two-way conversation, and you work out what the goals are for the next 12 months together.
Empowering them to be a part of this conversation may also allow them to feel more comfortable reflecting back on the previous 12 months, as it will feel more like an open discussion.
Develop a culture of psychological safety
Psychological safety is a key tenet of a healthy workforce where employees feel comfortable receiving feedback.
When people are comfortable at work, they’re more likely to share what they’re going through and be more able to analyze what impacted their performance and why. Meaning they can improve before their next annual performance review.
Use more than a spreadsheet
58% of businesses still use spreadsheets to manage and monitor performance reviews. While spreadsheets have their uses, there are far better ways to assess an annual performance review in 2025.
The right tool can make it easier for employees and managers to track goals and enable you to analyze the progress.
Employees are more likely to trust software to be objective and deliver a fair review than just their manager, too. Which makes sense when you consider that we’re all prone to unconscious biases and it’s easy to forget things.
Despite how much easier technology can make performance reviews, just 45% of business leaders think their organization uses consistent tools for them. Showing it’s time for an upheaval in how we approach the annual performance review process.
Conclusion
The annual performance review process shouldn’t be a time of stress and anxiety for employees or managers.
The right tools, systems, and culture can make it a more comfortable, effective process for everyone. And not just one where managers talk at employees about things that are forgotten 24 hours later.
Boost your feedback culture
Want to find out what your employees really think of your company’s annual performance review? Why not send a survey?
Using Workrowd, you can send automated surveys to collect feedback from employees after key milestones—like their annual performance review. Get in touch today to book your free demo.
