Why Do Annual Performance Reviews Happen If There Aren’t Raises?

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Asked By CuriousMind83 On

I recently completed my annual performance review and was surprised when management told me that performance reviews are not connected to raises. Given that the company is struggling economically and won't be offering any raises this year, I'm left wondering: what's the purpose of these reviews? Why go through this process if it feels more like a formality rather than a genuine evaluation of my work that could lead to any tangible benefits?

4 Answers

Answered By JobJuggler99 On

Performance reviews can also help companies identify areas for employee improvement and productivity. Even if raises aren't part of the discussion, they still serve as a way to gauge who might need additional support or training to boost overall company performance.

Answered By CareerClimber22 On

If a company isn’t even offering minimal raises, I’d personally start looking for another job. A place that doesn’t even bother to give you a small raise isn’t valuing your contribution enough for my liking.

Answered By SkepticalSteve On

Honestly, the main purpose of performance reviews seems to be for the company to justify decisions like layoffs or firing employees. Usually, they’re less about rewarding good work and more about management’s way to filter who might stay and who might go.

ConcernedColleague -

Yeah, especially with performance improvement plans (PIPs). Those who score low often become the first targets during layoffs.

Answered By ThinkingAhead On

It’s sad but true that some companies do this just to fulfill audit requirements. The review process can feel like paperwork rather than a meaningful evaluation of my contributions, which is frustrating.

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