Gallup data shows only 14% of employees feel performance reviews inspire them to improve, while research indicates that 62% of variance in ratings reflects the manager rather than the employee. Traditional annual assessments persist largely out of administrative habit, yet they consistently measure rater quirks instead of actual output. If you rely on these scores to dictate compensation or promotions, you are likely rewarding manager bias rather than performance. A closer breakdown of the evidence and better alternatives: smbadvisor.management/performan…

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