AI Business
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CEO highlights need for modernizing annual performance reviews in the age of AI
May 19, 2026
AI Summary
David Hassell, CEO of 15Five, argues that traditional annual performance reviews are outdated and ineffective in today's fast-paced work environment. He advocates for more frequent evaluations and the integration of AI to streamline the process and focus on employee growth.
- Annual performance reviews are often viewed as uncomfortable and ineffective by many employees and HR leaders.
- David Hassell, CEO of 15Five, claims that the traditional review system is outdated due to rapid technological advancements.
- A 2024 Gallup poll indicated that only 2% of Fortune 500 chief human resource officers believe their performance management systems effectively inspire employee improvement.
- Hassell criticizes the annual review process for being backward-looking and suggests that it fails to support employee development.
- Experts, including Dan Kaplan from Korn Ferry, note that many companies are seeking to implement continuous feedback instead of relying solely on annual reviews.
- Hassell recommends increasing the frequency of performance reviews to at least twice a year, supported by continuous feedback, to enhance employee growth and reduce anxiety around evaluations.
- He believes that AI can help automate administrative tasks in performance management, allowing managers to focus on coaching and future development.
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