For the vast majority of modern workers, the annual performance review is a dreaded ritual defined by paperwork and an uncomfortable conversation.
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. “We’re at an accelerating pace of technology and change, and the practice just hasn’t kept up.”
Though long-dreaded and outdated, the annual performance review is still relied on by many firms today to discuss an employee’s potential promotion or performance issues. Even so, most chief human resource officers don’t believe that performance reviews are effective. A 2024 Gallup poll found that just 2% of Fortune 500 CHROs strongly agree that their performance management system inspires their employees to improve.
A ‘backward-looking’ process
