How Performance Reviews will Change in the Next Five Years

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Performance reviews have been an essential part of the workplace for decades, helping employers to evaluate their employees’ performance and development. But as technology advances, so too do our methods of evaluating performance. In the next five years, we can expect to see a shift in how employers use performance reviews to assess their staff’s progress – with more emphasis placed on skills-based assessments rather than traditional methods such as annual appraisals.

Check this out: 6 Powerful Questions To Ask In Your Performance Review

One key factor driving this change is the increasing availability of data-driven tools which allow employers to better track employee performance on an ongoing basis. For example, software such as ‘People Analytics’ can be used to monitor key metrics around employee engagement, productivity and job satisfaction. This data can then be used to inform decisions regarding promotions and salary increases within an organisation. In addition, technologies such as artificial intelligence (AI) are being utilised more widely by HR teams in order to automate the process of tracking employee performance over time.


Another factor that is likely to shape the future of performance reviews is the growing trend towards agile working practices within organisations. As companies become more flexible in terms of where and when people work, it becomes increasingly important for them to measure employees’ achievements in real-time so they can accurately assess their progress against specific goals and objectives. To facilitate this, many companies are already introducing digital tools which enable them to gather feedback from both colleagues and customers on a regular basis; for instance, some organisations are allowing employees to rate each other’s work on a weekly or monthly basis using online surveys or apps.

Finally, a greater focus will be placed on developing skills rather than simply assessing past results during performance reviews in the coming years. This means that employers will need to provide employees with clear targets and objectives before they start any project or task; these goals should be tailored specifically towards individual strengths so that employees can develop new skills relevant to their job role whilst meeting those targets. Additionally, managers may also choose to incorporate elements of gamification into their review processes – such as awarding points or badges based on certain criteria – which could motivate employees while also providing valuable insights into their capabilities at any given time.

Check this out: 6 More Powerful Questions To Ask At Your Performance Review

In summary, it is clear that performance reviews will look very different over the next five years compared with how they operate today; we can expect organisations will move away from traditional appraisals towards data-driven approaches which take into account an employee’s current capabilities through real-time feedback systems and skills-based assessments rooted in agile working practices. Ultimately these changes should provide employers with more comprehensive insights into each individual’s strengths and weaknesses as well as making it easier for them reward outstanding performances accordingly

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