CEO of AI-powered performance review firm says annual evaluations weren’t designed for the AI era: ‘The practice just hasn’t kept up’
David Hassell, CEO of 15Five, argues that traditional annual performance reviews are outdated and ineffective in the fast-paced, technology-driven workplace. He emphasizes the need for more frequent feedback to better support employee growth and development. Many HR leaders agree that the current system fails to inspire improvement among employees.
- ▪Annual performance reviews are often seen as a dreaded ritual by employees.
- ▪A 2024 Gallup poll found that only 2% of Fortune 500 CHROs believe their performance management system effectively inspires improvement.
- ▪Hassell suggests that more frequent reviews, integrated with continuous feedback, could alleviate the frustrations of the current system.
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For the vast majority of modern workers, the annual performance review is a dreaded ritual defined by paperwork and an uncomfortable conversation.Recommended Video According to David Hassell—CEO of AI-powered performance review firm 15Five—this frustration is a structural failure, and one that’s grown obsolete amid speedy technological innovation. Speaking at Fortune’s Workplace Innovation Summit, Hassell said that the traditional review system is a relic of an age with slower technology. “Annual reviews made sense when the world was pretty static,” he said.
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