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Annual vs continuous performance review is a question of rhythm. An annual review gives one formal record; continuous reviews spread feedback through the year so the record has no surprises.
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An annual review is a single formal appraisal at the end of the performance year. The manager rates the year against goals, the rating feeds increments and promotions, and the conversation happens once.
Continuous review replaces or supplements that with frequent, lighter conversations: monthly or quarterly check-ins, regular one-on-ones, and goals that are updated during the year rather than set once and forgotten.
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| Factor | Annual review | Continuous review |
|---|---|---|
| Frequency | Once a year, sometimes with a mid-year review | Monthly or quarterly check-ins, plus regular one-on-ones |
| Evidence used | Whatever the manager remembers or noted | Notes and goal updates built up through the year |
| Effort | Concentrated in a few weeks | Spread across the year; small and regular |
| Link to pay | Direct and simple to administer | Needs a point in the year where check-ins are summarised for pay decisions |
| Speed of correction | Problems can sit for months | Problems raised while they can still be fixed |
| Main risk | Recency bias and surprise ratings | Check-ins skipped or turned into status meetings |
Watch for itMost organisations that move to continuous review keep a year-end step. The difference is that the year-end rating summarises conversations already held instead of opening new ones.
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Not necessarily. Many organisations keep an annual rating for pay decisions and use check-ins to make sure the rating reflects the whole year.
Monthly or quarterly is common. Choose a rhythm managers can actually keep; a quarterly check-in that happens is better than a monthly one that does not.
It is a step towards it. Two formal points a year reduce surprises, but continuous review also relies on regular informal conversations in between.
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