When Performance Evaluations Do More Harm Than Good — And How to Do Them Right

If you’ve ever walked away from a performance evaluation feeling frustrated, misunderstood, or even demoralized, you’re not alone.

In fact, Gallup research confirms what many employees and managers already feel deep down: most traditional performance evaluations simply don’t work. Only 1 in 5 employees say their performance is managed in a way that motivates them. And only 14% feel their evaluations actually inspire better performance.

At Express Evaluations, we believe it’s time to stop pretending the old way still works and start building something better.

The Problem Isn’t You; It’s the System

When we speak with organizations, we hear a common theme: “Performance reviews feel like a waste of time. Sometimes, they actively harm morale.”

And you’re absolutely right to feel that way.

Gallup’s comprehensive research into performance management shows just how deeply flawed many current systems are. These systems often suffer from:

• Unclear expectations: Half of employees don’t know what’s expected of them.

• Infrequent feedback: 74% of employees get reviews only once a year or less.

• Manager bias and subjectivity: Most performance ratings are based more on personal perception than actual performance.

• Overemphasis on ratings and rankings: Reducing someone’s contribution to a number is demotivating and doesn’t help with growth.

• Focus on pay over growth: When feedback becomes synonymous with compensation decisions, real development gets lost in the shuffle.

  
  

These aren’t just small kinks in the system. They’re systemic flaws that cost companies millions in lost productivity, disengagement, and turnover.

The Hidden Costs of Bad Performance Management

Gallup estimates that disengaged employees cost U.S. companies up to $1.2 trillion annually. And traditional evaluations are a key driver of that disengagement.

For a company with 100 employees, time spent on outdated evaluation processes alone can cost between $24,000 and $350,000 a year, without even factoring in the toll on morale, innovation, or retention. 

In short: bad evaluations are expensive, ineffective, and harmful. So why are we still doing them this way?

There Is a Better Way: Performance Development, Not Performance Management

The good news is that there’s a better path forward.

The future of performance evaluations isn’t about paperwork, ratings, or forced rankings. It’s about performance development, a strengths-based, coaching-driven approach that focuses on people, not processes.

Gallup’s research shows that the most effective managers aren’t just evaluators, they’re coaches. And the best evaluation systems are built around three core pillars:

1. Establish Clear Expectations

Great performance starts with clarity. Yet only 50% of employees strongly agree they know what’s expected of them every day.

It’s not enough to hand someone a job description once a year. Expectations need to be relevant, individualized, and connected to organizational goals.

When employees create goals with their managers, they are:

• 3.6x more likely to be engaged

• More likely to feel ownership over their performance

• Better able to prioritize and focus on what truly matters

  
  

2. Continually Coach, Don’t Just Evaluate

Annual reviews are too little, too late. Feedback must be frequent, focused, and future-oriented.

The numbers speak for themselves:

• Employees who receive daily feedback are 3x more likely to be engaged.

• Only 23% say their manager provides meaningful feedback.

• Only 26% feel that feedback helps them do better work.

  
  

Coaching isn't about micromanagement. It's about partnership. The best managers check in often, celebrate wins, offer course corrections, and ask thoughtful questions that build trust and performance.

3. Create Real Accountability

Yes, accountability still matters, but not in the punitive, high-stakes way traditional reviews have taught us.

Effective accountability happens when employees feel empowered, not threatened. When expectations are clear, feedback is continuous, and progress is regularly reviewed, accountability becomes a tool for growth, not punishment.

And accountability works best when it’s:

• Achievement-oriented: Start by recognizing success.

• Fair and accurate: Evaluate what matters most, not what’s easiest to measure.

• Developmental: Connect performance today to career goals tomorrow.

Your Team Deserves More Than a Scorecard

If you’ve felt that performance reviews were hurting more than helping, you’re in good company, and you’re absolutely right to question them.

But what if performance evaluations could actually make your team better? What if they sparked motivation instead of resentment? What if they helped people grow instead of just ranking them?

That’s the vision behind Express Evaluations.

We help companies shift from outdated performance management to a more human, impactful, and evidence-backed approach, and our software is built specifically to support that transformation.

Express Evaluations’ performance development platform is designed to address the exact problems Gallup identifies in traditional evaluation systems, with features that promote clarity, coaching, and accountability:

• Goal-setting tools that encourage collaboration between managers and employees — no more unclear expectations or top-down goals that feel disconnected from daily work.

• Bias-reducing evaluation templates that prioritize strengths-based feedback and reduce subjectivity in performance discussions.

• Flexible check-in cadences and automated reminders to keep performance

  development conversations consistent and timely — not just a once-a-year event.

  
  

In short, we designed Express Evaluations to help managers become coaches, employees feel empowered, and performance evaluations become a real driver of growth, not a drain on time and morale.

Ready to Elevate Performance? Let’s Talk.

If you’re tired of evaluations that don’t work, let’s build something better.

Our software and support services help you implement a performance development system that actually works for employees and leaders alike. You already know that traditional evaluations don’t deliver results. But you don’t have to settle for frustration.

There’s a better way forward, and Express Evaluations is here to help you get there.

Book a demo to talk with an expert from our team today.