#Compensation

This article critiques traditional performance reviews and advocates for alternative approaches that enhance employee feedback and engagement. It discusses the negative impact of outdated review systems on motivation and performance, proposing continuous feedback mechanisms that prioritize timely communication. By addressing key organizational needs—such as effective feedback, fair salary decisions, and clear direction—the article offers strategies for fostering a more collaborative and transparent workplace culture, ultimately empowering individuals and teams for better organizational outcomes.

Performance reviews are widely accepted in software companies, yet they often foster unhealthy competition and overlook the importance of teamwork. By emphasizing individual achievements over collective success, these evaluations can undermine collaboration and lead to biased assessments. Exploring alternative approaches like continuous feedback and peer evaluations can help create a more inclusive and productive workplace culture.

Bonuses shift an employee's interest from the long-term success of the company to the achievement of a short-term goal. By introducing bonuses, you are incentivising the achievement of goals, that should not need any incentives, if they were the right goals to begin with.