Best Practices in HR

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David Whitmarsh
  November 1, 2023

Using Performance Management as a Retention Tool

Performance reviews have long been seen as a dreaded and anxiety-inducing process in the corporate world. Many employees associate them with being blindsided by negative feedback, leading to decreased morale and an increased likelihood of leaving the organization. However, the traditional performance review process doesn’t have to be this way. By adopting a more holistic approach that emphasizes continuous feedback, setting clear expectations, and tying performance reviews to career development, companies can transform performance management into a powerful retention tool. In this article, we will explore how these strategies can help organizations retain their best employees and create a culture of growth and development.

Continuous Feedback: The Power of Ongoing Dialogue

One of the main reasons employees dread performance reviews is the fear of being blindsided by negative feedback. Traditional annual or bi-annual reviews often provide feedback on past performance without giving employees the opportunity to address issues in real-time. This lack of ongoing dialogue can be demoralizing and leave employees feeling undervalued.

By implementing a system of continuous feedback, organizations can create a culture of open communication and development. Regular check-ins between managers and employees provide an opportunity for real-time feedback, fostering a sense of trust and transparency. When employees receive feedback regularly, they have a clear understanding of their strengths and areas for improvement, allowing them to make necessary adjustments and grow professionally.

Setting Clear Expectations: Aligning Employees and Managers

Another common issue with traditional performance reviews is the lack of clarity regarding expectations. Employees may feel that their performance is evaluated based on subjective criteria or that their contributions are not recognized or rewarded appropriately.

To address this challenge, organizations should focus on setting clear expectations from the outset. By establishing well-defined goals, objectives, and performance metrics, both employees and managers can align their efforts. Regular performance discussions should take place to ensure that expectations are understood and adjusted as necessary. When employees have a clear understanding of what is expected of them, they are more likely to feel motivated and engaged in their work, reducing the risk of dissatisfaction and attrition.

Career Development: Linking Performance Reviews to Growth

Performance reviews can serve as an excellent opportunity to demonstrate an organization’s commitment to employee career development. When employees see that their growth and advancement are actively supported by the organization, they are more likely to stay and contribute their best efforts.

Organizations should integrate discussions on career aspirations and development plans into the performance review process. This allows managers to understand their employees’ goals and aspirations, and jointly develop strategies to help them achieve their objectives. Whether it’s through training programs, mentorship opportunities, or challenging assignments, aligning performance reviews with career development demonstrates that the organization is invested in the long-term success of its employees.

Leveraging Technology: Streamlining the Performance Management Process

To effectively implement the strategies discussed above, organizations can leverage technology to streamline the performance management process. Digital tools can facilitate continuous feedback by enabling real-time communication and collaboration between employees and managers. They can also provide a platform for setting and tracking goals, documenting performance discussions, and capturing feedback from multiple sources.

By adopting performance management software or platforms, companies can create a seamless and efficient process that empowers employees and managers alike. Technology can enhance transparency, facilitate ongoing communication, and provide valuable data for evaluating employee performance and identifying areas for improvement.


Performance reviews don’t have to be painful experiences that drive employees away. By reimagining the performance management process and adopting a more proactive approach, organizations can transform performance reviews into a powerful retention tool. Continuous feedback, setting clear expectations, and linking performance reviews to career development can contribute to a culture of growth, engagement, and retention. By leveraging technology, organizations can streamline the process and ensure that employees feel valued, supported, and motivated to excel. When performance management becomes a positive and empowering experience, companies are better equipped to retain their top talent and drive long-term success.

If you enjoyed this blog, check out these other Teamatics blogs;

Performance + AI: Your Managers are Going to Love You

Using Career Development as a Differentiator for Your Organization When Hiring


Duane Edwards
Co-Founder and Chief Product Officer – Teamatics

Customer-focused software professional who has spent his career in solution architecture, onboarding, training, customer engagement, product management and software development.