Is it time to ditch annual performance reviews and PIPs?

Published on
Dec 7, 2023
Written by
Allison Butler
Read time
16 min read

Major companies are ditching performance reviews

In November, Jack Dorsey, former CEO of Twitter and current CEO of Block (formally known as Square), decided to ditch annual performance reviews and PIPs altogether. Here's what he had to say:

Why ditch performance reviews?
"It doesn't actually help us get better. Performance should be continuously evaluated, and feedback should not be queued up for later."

Why ditch PIPs?
"We haven't seen these plans actually work consistently, as they often feel too late and don't push the manager to give feedback in a timely manner. It's a lazy and often surprising approach that we can avoid with direct and consistent feedback."

What does this mean for other companies going forward? Continuum Founder Nolan Church, former Chief People Officer at Carta and Head of Talent at DoorDash, weighed in.

"Feedback should be constant and real-time. Annual performance reviews are a useless tax on employees and leaders. The only reason we still do annual reviews is because we've always done it."

"PIPs are awful, and the practice should be ended. PIPs are a CYA that makes lawyers feel better, but they don't help people or the business. Companies will instead give a generous severance (see the Netflix Culture Deck)."

Kelli Dragovich, former Chief People Officer at Pendo, and Nolan Church sat down to discuss more on this topic.

Need help determining what would work best for your company? Talk to an advisor with years of experience in performance reviews and PIPs. We can connect you today.