Yahoo axes performance reviews for continuous feedback culture

In 2022, Yahoo made a significant shift in its employee performance evaluation process by eliminating the traditional biannual performance reviews. This change, announced by Lisa Moore, the chief people officer, was driven by dissatisfaction among employees with the existing evaluation system. Many workers expressed feelings of disappointment and surprise when receiving feedback during the formal reviews, often learning about issues for the first time. The company believed that frequent interactions between employees and their managers would lead to better communication regarding performance issues and career aspirations. Rather than the regular, high-pressure meetings, Yahoo opted for more informal and casual check-ins, allowing for ongoing discussions between managers and their direct reports. This approach aims to foster a culture of open dialogue that encourages employees to voice their concerns and aspirations while holding managers accountable for maintaining consistent feedback. With support from an HR bot deployed to monitor check-in conversations, the company seeks to ensure that employees engage actively with their management and receive the necessary guidance throughout the year. The transition to this new feedback system has been generally well-received by Yahoo’s employees. It is designed to create a sense of ownership for both employees and managers, promoting an environment where they can interact as adults without being micromanaged. Lisa Moore emphasizes that workers desire flexibility, which adds to the overall morale and job satisfaction at the company. In summary, Yahoo’s innovative approach to employee evaluations, focusing on ongoing dialogue instead of formal reviews, has positioned the company favorably in the eyes of its workforce. It reflects a growing trend among progressive companies to move away from rigid assessment structures in favor of more adaptable and responsive performance management techniques.