Latest news with #performanceReviews
Entrepreneur
16 hours ago
- Business
- Entrepreneur
Microsoft Staff Told to Use AI More at Work: Report
Microsoft may even start factoring AI tool use into performance reviews, the report claims. A new report from Business Insider claims that Microsoft is considering formal metrics for evaluating how much employees use AI during the workday. The outlet viewed an email from Julia Liuson, president of the developer division at Microsoft, which told managers to include time spent using internal AI tools, both in-house and from the competition, in employee performance reviews. Related: 'Not Cool': Sam Altman Says Lawsuit Over Secret Jony Ive Project Is 'Silly' "AI is now a fundamental part of how we work," Liuson wrote in the email. "Just like collaboration, data-driven thinking, and effective communication, using AI is no longer optional — it's core to every role and every level." AI use at work is already on the rise. This week, Salesforce CEO Marc Benioff told Bloomberg that AI was handling half of all work at his company. AI is taking care of "30% to 50% of the work at Salesforce now," Benioff said. Meanwhile, a new report from SignalFire, a venture capital firm that monitors the job movements of over 650 million employees on LinkedIn, found that advances in AI have already led big tech companies to reduce the hiring of new graduates (down 25% from 2023 to 2024). Related: Meta Poaches the CEO of a $32 Billion AI Startup — After Trying to Buy the Company and Being Told No
Forbes
3 days ago
- Business
- Forbes
5 Reasons Outdated Performance Reviews Make Top Talent Quit
Leaders may trust old-school performance reviews, but in reality, these practices are pushing top ... More talent out the door. Nearly 80% of senior leaders admit employees must leave their company to get promoted or earn higher pay, according to Acorn's 2025 Corporate Performance and Learning Survey. This shocking statistic highlights a fundamental flaw in how organizations assess and develop their employees. While 66% of executives report confidence in their performance tools and frameworks, only 19% of individual contributors share that sentiment. Leaders might believe old-school performance reviews are working, but the reality is that they are driving away top talent. Here are five critical ways outdated performance reviews are sabotaging your ability to retain your best people, along with strategies to improve your approach dramatically. 1. Annual Reviews Create Anxiety When workers spend months anticipating a single conversation that will determine their compensation and career path, the psychological pressure becomes overwhelming. As a result, traditional performance reviews have become anxiety-inducing sessions that crush employee motivation rather than inspire excellence. The emotional toll extends beyond the meeting itself. According to Acorn's research, one in four employees question their value to their organization after a performance review. Most respondents reported that past performance reviews made them feel anxious, stressed, uninspired and less productive. For high-achieving professionals who thrive on recognition and growth opportunities, these negative experiences become powerful motivators to seek employment elsewhere. Create low-stakes, regular check-ins that focus on support rather than evaluation: 2. Delayed Feedback Loses Impact By the time managers sit down to discuss performance issues or achievements, the feedback has lost all practical value. Employees need real-time guidance to course-correct, capitalize on opportunities and maintain momentum. Betterworks' 2024 State of Performance Enablement report found that employees who receive ongoing feedback are three times more likely to feel they can perform their work well and are significantly more likely to see a path for internal career development. When organizations wait until year-end to address performance gaps or celebrate wins, they miss critical opportunities for growth and improvement throughout the year. Implement a "feedback at the moment" culture: 3. One-Size-Fits-All Ignores Individual Strengths Traditional performance reviews operate on standardized frameworks that fail to account for the diverse ways employees contribute value. These rigid structures force managers to evaluate software engineers using the same criteria as sales representatives or to assess remote workers by the same standards as those in traditional office environments. High performers, who often embrace unique approaches and specialized skills, find themselves constrained by performance reviews that fail to recognize their exceptional contributions. Develop personalized evaluation approaches: 4. Bias and Inconsistency Undermine Trust One of the most damaging aspects of traditional performance reviews is their susceptibility to bias and inconsistency. Research conducted by Six Seconds reveals that 62% of the variance in performance reviews comes from the rater's tendencies, while only 21% reflects the actual employee's performance. This means performance reviews are three times more reflective of the manager's biases than the employee's actual contributions. Recency bias particularly impacts performance reviews, where managers tend to focus disproportionately on recent events while overlooking achievements from earlier in the year. Without documentation and regular check-ins, reviewers rely on whatever examples come to mind during the evaluation period. This approach penalizes employees whose peak contributions occurred months before the review cycle and rewards those who happened to excel just before evaluation time. Build systematic, bias-resistant evaluation processes: 5. Limited Growth Drives Top Talent Away The most compelling reason top talent leaves organizations with outdated performance reviews is the lack of career development opportunities. Traditional annual reviews primarily focus on past performance rather than future potential, offering limited guidance on how employees can advance their careers within the organization. When high performers can't see clear pathways for growth, they create their own by changing companies. Transform reviews into growth-focused conversations: Moving Beyond Broken Performance Reviews Traditional performance reviews are driving away the top talent companies need to succeed. While many employers express openness to AI-powered solutions and capability-based feedback, outdated review processes still frustrate both employees and managers. High performers have options, and many are choosing workplaces that prioritize continuous growth instead of relying on annual evaluations. The businesses most likely to thrive will be those that view performance management as an ongoing process of development and support, rather than a once-a-year ranking exercise.
Forbes
13-05-2025
- Business
- Forbes
Rethinking Work Performance Culture: Why Annual Reviews Fail Gen Z
Gen Z at work The challenges of developing a fair and consistent review process have been well documented, and Gen Z, the first truly digital-native generation to enter the workforce, is having none of it. Having grown up with instant feedback through likes, comments, and immediate digital responses, Gen Z approaches workplace feedback with dramatically different expectations than previous generations. Unlike Baby Boomers who often see performance reviews as formal evaluation tools, or Gen X who value autonomy in feedback, Gen Z craves frequent, personalized guidance focused on growth rather than judgment. Failing to account for these dramatic differences in expectations can negatively impact company culture, increase employee burnout, and stifle engagement. But forward-thinking leaders are finding new ways to meet the challenge. Here's how. Annual, backward-looking, manager-driven evaluations are poorly suited for today's knowledge economy, where roles evolve rapidly and innovation requires constant adaptation. For Gen Z specifically, waiting months for feedback feels alien and disengaging. A generation accustomed to immediate responses on digital platforms finds traditional annual reviews particularly frustrating and inauthentic. Recognizing this reality, we saw a shift away from annual review processes about a decade ago. Interestingly, the pendulum now appears to be swinging in the other direction, with companies like Microsoft, which famously abandoned its "stack ranking" system in 2013, reinstating forced competition. Whether others follow suit remains to be seen. But contrary to being coddled, Gen Z wants to take charge of their own development. Research from Gartner highlights a telling statistic about Gen Z's self-sufficiency mindset: 38% of Gen Z would abandon resolving an issue if they couldn't do it themselves through self-service, compared to only 11% of Baby Boomers. This preference for independent problem-solving extends to how they approach feedback—they want accessible tools and resources for self-development, not just manager judgment. Additionally, Gen Z employees tend to be more vocal than previous generations about perceived unfairness and particularly alert to systematic biases, which can plague performance review processes, and far more likely to disengage from systems they think are unfair. To create a performance management process that actively engages Gen Z while strengthening organizational culture, companies must embrace real-time feedback mechanisms and immediate, relevant guidance. Consider these five essential elements: Replace annual reviews with weekly or even daily digital touchpoints. Gen Z expects the same immediacy in workplace feedback that they experience on social platforms. Design brief check-ins using messaging apps or collaboration tools they're already comfortable with. Train managers to use concise, specific language and to provide instant recognition through digital channels when Gen Z employees achieve goals or demonstrate growth. Implement pulse surveys that feel more like Instagram polls than formal evaluations to gather their insights regularly. Gen Z places significant value on peer opinions and community input. Develop processes that gather feedback horizontally rather than just vertically from management. Create collaborative evaluation processes where Gen Z team members can solicit and receive input from colleagues across departments. Encourage them to build their personal "feedback network," empowering them to seek growth insights from multiple sources rather than relying solely on managers. Gen Z sees professional development as an extension of personal growth. Structure conversations around skill-building that connect to both career aspirations and personal values. Help Gen Z employees identify development opportunities aligned with social impact causes they care about. Create customizable learning pathways that allow for personalization rather than standardized development plans. Regularly connect their daily work to broader purpose and meaning, which Deloitte research confirms is central to Gen Z's workplace satisfaction. Implement technologies that allow Gen Z to track their progress rather than waiting for manager evaluations. Select platforms that gamify skill development with visible achievement markers. Provide AI-powered assessment tools that offer immediate, objective feedback on their work. Enable self-comparison features that let them benchmark their growth against anonymized peer data. Prioritize mobile accessibility for all performance tools, as Gen Z expects workplace technologies to function like the apps they use in their personal lives. While separating development from compensation decisions remains important, Gen Z demands unprecedented transparency in how reward systems work. Document and communicate the specific metrics and benchmarks that influence compensation decisions. Provide data visualizations that illustrate the relationship between performance and rewards across the organization. Engage Gen Z in reshaping compensation structures to better reflect their values around fairness, purpose, and work-life balance. Importantly, recognize that these employees are highly transparent when communicating with one another on issues of compensation. The foundation for effective performance management with Gen Z is psychological safety that honors their commitment to authenticity and transparency. Unlike previous generations who might compartmentalize critical feedback as "just business," Gen Z approaches work as an integrated part of their identity. By replacing traditional annual reviews with continuous, purpose-connected feedback systems, companies can create cultures where Gen Z employees feel valued, challenged, and authentically seen.
