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Should Employers Give Annual Performance Reviews or More Frequent Feedback?

A recent Forbes article explored how workplace feedback may need to evolve with the influx of Gen Z workers. These digital natives grew up receiving a lot of quick feedback on their digital posts with likes and comments. The younger workers prefer more frequent personalized feedback focused on helping them grow into their jobs, rather than yearly performance evaluations that judge their contributions.

Employers may want to keep what has always worked. However, it can negatively impact their workplaces, stifle professional growth from Gen Z, and increase employee burnout. Per Forbes, approaching evaluations differently meets the requirements of today’s workplace, where technology evolves rapidly, needing “constant” adaptation. In the last decade, the annual performance evaluation has declined in popularity (although some companies are bringing it back). It is unclear how far the pendulum will swing.

Gen Z wants to take charge of their professional development, with 38% choosing not to resolve an issue if they could not do so themselves. Only 11% of Baby Boomers would make the same choice (Forbes). The younger generation uses the same approach to feedback. They want to access it on their own, along with resources for self-development. As many employers have noted, Gen Z is vocal about perceived injustice and systemic biases. Forbes recommends the following tools to keep Gen Z engaged.  First, provide frequent digital check-ins. Allow for multiple feedback sources, including peer team members and colleagues across departments.  Support building skills for personal development, including for causes they care about. (Deloitte research says it is essential to Gen Z workplace satisfaction.). Give digital tools for these workers to track their progress. Finally, be transparent on compensation decisions, making the connection between performance metrics and pay clear.