Why your annual reviews are no longer used to make decisions

For years, the annual performance review was the highlight of the management calendar: the moment when the year was assessed, decisions were made about promotions, raises, and career plans.
But today, in most companies, this ritual no longer serves its purpose. It no longer allows for reliable decisions to be made. It no longer reflects the reality of the work. It no longer generates commitment.

Here's why.

1. The credibility of the annual review has collapsed.

• Only 44% of French employees consider it useful.
• Less than 15% believe it has a real impact.
• Nearly two-thirds believe that these interviews are a waste of time.

When the vast majority of employees no longer believe in the process, how can we expect to make relevant decisions?

2. The annual review is undermined by human bias

Three biases consistently recur in annual evaluations:

• Recency bias: managers tend to focus on the last few weeks rather than the whole year.
• Mood bias: a tense situation or recent conflict influences judgment.
• The mixing of roles: asking the manager to be both coach and judge in the same meeting creates an unsolvable paradox.

Consequence: decisions made after the annual review are often subjective, debatable, or simply disconnected from reality.

3. A completely unsuitable annual rhythm

Work is changing rapidly. Objectives are shifting, projects are pivoting, and the skills required are transforming.

The problem?
A fixed date, once a year, cannot capture this dynamic.

The goals set in January sometimes no longer reflect anything in September. We end up judging an entire year based on a few vague memories and a one-hour conversation.

4. Too little concrete impact

Another clear observation:

• A majority of employees report that nothing really changes after the interview.
• Decisions are often vague, not followed through, or disconnected from actual development needs.

A process that does not result in actionable decisions loses all meaning.

5. Forward-thinking companies are moving toward continuous feedback

More and more organizations are abandoning the "annual" model in favor of:

• regular progress reports,
• continuously revised objectives,
• evaluations based on concrete data,
• ongoing development conversations.

This model reduces bias, improves performance, and strengthens the manager–employee relationship.

What this means for businesses

Relying on the annual review as the sole assessment tool has become ineffective.
It no longer allows for calm decision-making, anticipating skill needs, or managing teams.
The world of work has become too fast-paced, too complex, and too individualized for a fixed model.

How Palm solves this problem in practice

Palm was designed specifically to help companies move away from this outdated model.
Here's how:

1. Continuous feedback & dynamic monitoring

Palm replaces the annual cycle with regular, fluid monitoring:
short evaluations, contextualized feedback, scheduled or spontaneous progress reports.
Managers gain precision. Employees gain clarity.

2. Actual data, not memories

Rather than evaluating "from memory," Palm aggregates objective data:
observed skills, results, achievements, projects, 360° feedback, training courses taken.
Decisions become objective, documented, and consistent.

3. Automated and actionable HR decisions

Palm instantly turns an assessment into action:

• development plan,
• training recommendations,
• internal mobility possible,
• departure risks,
• skill levels before/after.

HR teams gain impact, managers gain efficiency, and employees gain visibility into their progress.

4. A system aligned with actual performance

Palm connects performance + skills + aspirations + potential.
Decisions (raises, promotions, mobility, project staffing) become consistent, transparent, and strategic.

Conclusion

Annual reviews are no longer suited to today's world of work.
To make real decisions, you need data, momentum, transparency, and dynamic processes.

Palm allows you to move from an annual evaluation...
to continuous, simple, reliable, and deeply human management.

‍