Many Latvian companies are currently conducting annual performance reviews, but a significant portion of organizations either don’t conduct them at all or only do so with a subset of their employees, according to recent data.
A survey by Kantar revealed that 44% of Latvian employees do not receive regular annual performance reviews with their managers. Approximately one-third of employees report not receiving constructive feedback on a daily basis – whether acknowledging good work or identifying areas for improvement.
Annual Reviews Shouldn’t Lead to Tears
While not a panacea, annual performance reviews serve as a crucial checkpoint for a new cycle – an opportunity to assess accomplishments, agree on future direction, and discuss growth and development opportunities. The effectiveness of these reviews, however, hinges on consistent communication throughout the year. Without regular dialogue between managers and employees, annual reviews risk falling short of their potential. Attempting to mend relationships with a single annual conversation is often ineffective.
Employees respond best to structured, regular feedback, rather than a generalized assessment once a year. Frequent communication allows for timely course correction and avoids unwelcome surprises during the formal review process, fostering trust and strengthening collaboration. Effective managers utilize annual reviews as a logical summary of ongoing conversations throughout the year, reducing stress for both parties and making the discussion more meaningful. A U.S. Survey found that 34% of millennials have been brought to tears during performance reviews due to stress and emotional pressure.
Communication That Builds Successful Organizations
Academic research and organizational experience consistently demonstrate that performance evaluation is a key driver of employee motivation. The clearer, fairer, and more respectful the conversation about performance, the greater the employee’s engagement and desire to develop. This is particularly relevant as companies across Europe grapple with talent retention in a competitive labor market.
Importantly, reviews should be a two-way street. Employees should have the opportunity to share their perspectives – how they view the past year, what succeeded, what was challenging, and how collaboration with their manager and colleagues unfolded. This dialogue is often decisive, as surveys by PwC and Gallup indicate that employees are more likely to exit a job due to feeling unheard and unappreciated than because of compensation.
Annual reviews should conclude with clarity and confidence. Employees should leave the conversation feeling they understand their path forward, know what is expected of them, have support, and that their contributions are recognized.
This approach – where annual reviews are part of continuous, high-quality daily communication – builds strong teams and, successful organizations.
