Performance development shifts toward continuous feedback models

Organizations are increasingly shifting from traditional annual performance reviews toward continuous feedback and performance development models. This transition aims to support future growth rather than merely evaluating past actions.

Despite this shift, research from Cornell University’s Center for Advanced Human Resource Studies indicates challenges in implementation. Only one in five employees report feeling motivated by their company’s performance management system, and only 32% of executives believe their current systems facilitate high-quality talent decisions.

To improve outcomes, BDO suggests that success depends on providing leaders with practical support in three areas: establishing clear expectations and role models, utilizing connected workforce and business information for effective coaching, and leveraging technology and AI to reduce administrative burdens so managers can focus on employee development.