It’s that time again—dreaded performance reviews. You with me?
Most managers see them as a chore: another box to check. I get it. With an average of 8 direct reports (Gallup, 2023), and 3 to 5 hours needed to prep and deliver each review (SHRM), it’s a full workweek every cycle.
But for the employee? They have one manager, one review, and that conversation matters. They want feedback. 65% say they want more than they’re getting (Officevibe, 2023). It’s one of the few formal opportunities to talk about their work, goals, and future.
So why do reviews so often fall flat?
Because we try to do too much in one meeting. Feedback, career development, and pay decisions all crammed together. It creates pressure and conflicting incentives. Managers hold back tough feedback because they don’t want to argue about raises. Employees get strategic, not because they’re afraid of feedback itself, but because they know their compensation or next role is on the line. The conversation turns into a negotiation instead of a genuine reflection.
When Reviews Become Negotiations
At TPD, we didn’t abandon reviews or pay conversations. We just stopped cramming them into the same meeting.
Compensation matters. But if you want an honest discussion about growth, the conversation has to feel safe. When pay is on the table, managers hedge. Employees position for their raise. The real purpose—planning for development—gets lost.
We split the conversations so each could do its job properly:
- Performance Reviews: A structured opportunity to give feedback, celebrate wins, clarify expectations, and set goals. It’s where you build the plan together.
- Compensation Reviews: A separate, transparent discussion based on clear KPIs and business results. It rewards performance consistently, without muddying the feedback conversation.
This change didn’t just reduce tension. It made both conversations better.
What Makes Reviews Actually Valuable
A strong review process, in my view, does three things:
- Formalizes feedback. Nothing in a review should be new. But formalizing it ensures feedback is clear, consistent, and recognized. Without structure, it often doesn’t happen, or employees don’t realize they’re getting feedback at all.
- Recognizes success. People want to know their work is seen and valued. It feels great—and it’s valuable—to reflect on what’s working and why. Reviews should be overwhelmingly positive and focused on building from that success.
- Drives real career conversations. This is the most important part. It’s about setting meaningful goals and aligning on the plan to get there. If you skip this, the review might feel nice, but it won’t help people grow in ways that truly matter to them.
When I look at our own performance data (yes, I look at reviews individually and at aggregate!), I’m not hunting for who “deserves” a raise. I’m looking for the conversations we’re not having:
- Misalignment: Big gaps between self-assessment and manager feedback.
- Trajectory: Who’s growing? Who’s plateaued?
- Fit: Do our values show up in how people work?
The goal isn’t to rank people. It’s to figure out where we need to talk—and act.
The Uncomfortable Truth
Good reviews aren’t supposed to be painless. They should be real, thoughtful, and even a little uncomfortable, in a productive way.
They should ask things like:
- What do you want to achieve here?
- What would you change if you led this team?
- What’s getting in your way that no one talks about?
Those questions are far more valuable than any numerical rating.
My Challenge to You
If you’re still tying performance reviews to pay decisions, try decoupling them for one cycle. See what happens when people can be honest without financial consequences. You might be surprised at what you learn.
And if you’re avoiding performance reviews altogether because they feel pointless? Stop making them about judgment and start making them about growth. The conversation changes everything.
Performance management doesn’t have to be perfect. It just has to be real.