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Companies that use continuous performance management are up to 50% more likely to exceed their goals – a clear sign that the age of the one-off annual review is ending, and a continuous coaching-led era is taking its place.
Learning & Development teams now have the opportunity to play a central role in this transformation. You can directly influence how people grow – and how organisations evolve around that growth.
Are we at the end of the annual review era? What does that even look like?
Across industries, one-off annual reviews are gaining a reputation of irrelevance. They’re increasingly viewed as outdated and disconnected from day-to-day work – and as a result, something much more fluid is taking their place.
Instead of rigid, yearly reviews, companies are moving towards frequent, informal check-ins and real-time conversations that provide feedback at the moment it’s needed. TechClass notes that organisations are prioritising regular feedback loops to replace slow, annual cycles that fail to support real agility.
By 2026, many companies will retain an annual review only for pay or regulatory requirements. The meaningful performance conversations will happen continuously, and be embedded into everyday workflows.
The most significant evolution lies not in the employee, but in the manager. Performance management is shifting its emphasis from evaluation to development, eventually leading to a future in which leaders serve as coaches who guide long-term growth.
This new model prioritises growth over numbers. According to research shared by The HR Source, organisations are developing individualised “growth roadmaps” that blend aspirations, skills, and business priorities together to form something altogether more integrated.
These roadmaps both help employees feel valued as individuals and give managers a clearer path forward.
And as continuous, conversational feedback becomes the norm, employees will benefit from more support and psychological safety – making performance reviews feel less like a verdict and more like a shared effort to nurture the employee’s potential.
Technology will amplify these changes – but the key is to scale without losing humanity in the process. This could look like:
By 2026, AI tools will play a significant role in analysing feedback, suggesting learning interventions, and flagging opportunities for growth. Organisations are already beginning to adopt AI-informed review processes to support managers in making thoughtful decisions.
But ethical adoption is key. As McKinsey outlines in its report on learning trends, transparency, fairness and trust must anchor any use of analytics or automation.
Performance management is expanding beyond output and task completion. More organisations are taking a wider view of what “good” looks like, factoring in collaboration, customer impact, wellbeing, and how people build skills over time.
Wellbeing is also becoming a more regular part of performance conversations. Many managers are starting to discuss engagement, resilience, and emotional health as signals of sustainable performance, rather than treating them as separate topics.
Goal-setting is evolving too. Instead of objectives being handed down, employees are increasingly shaping them with their managers. This creates stronger alignment between personal development and organisational priorities, and it can support retention over time.
The shift towards continuous, coaching-based performance will place L&D at the heart of organisational strategy.
L&D teams will:
In this new era, learning becomes a mechanism for performance transformation, and as a result shapes culture and organisational capability. L&D takes a decisive role in driving consistent, people-centred development.
There are clear benefits to this modern approach to performance management, but there’s no such thing as a free lunch. Let’s look at the trade-offs that come with it, and what teams will need to invest to make these new expectations work.
Organisations that proactively address these issues will shift more smoothly into a culture of continuous growth.
Forward-thinking L&D teams can begin building the foundations today. Here are some quick-fire tips to set you up for success when next year rolls around.
Audit the current system. Identify where current feedback cycles cause delays, disengagement, or inconsistency.
Introduce coaching-based check-ins. Run regular conversations that emphasise growth over evaluation. Provide managers with practical coaching tools.
Embed learning in the flow of work. We’ll say it ‘til we’re blue in the face! Learning in the flow of work is the best way to make workplace development effortless. Develop quick, contextual answers for common issues; link learning to real tasks; and enable peer-to-peer learning across your business.
Adopt technology thoughtfully. Select tools that support human development rather than automate judgment. Prioritise transparency and trust when introducing analytics.
Track human outcomes. Monitor engagement, wellbeing, and capability gains alongside productivity measures.
These steps will help organisations move confidently toward a more effective and compassionate performance culture by 2026.
For L&D professionals, the shift towards continuous coaching offers a powerful opportunity to reshape how people learn and grow within your organisations. And as businesses adapt to new expectations, L&D will lead the charge.
Are you ready for this transformation?
Learn about Thrive’s Coaching and Mentoring features. Book a demo today.
Explore what impact Thrive could make for your team and your learners today.
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Companies that use continuous performance management are up to 50% more likely to exceed their goals – a clear sign that the age of the one-off annual review is ending, and a continuous coaching-led era is taking its place.
Learning & Development teams now have the opportunity to play a central role in this transformation. You can directly influence how people grow – and how organisations evolve around that growth.
Are we at the end of the annual review era? What does that even look like?
Across industries, one-off annual reviews are gaining a reputation of irrelevance. They’re increasingly viewed as outdated and disconnected from day-to-day work – and as a result, something much more fluid is taking their place.
Instead of rigid, yearly reviews, companies are moving towards frequent, informal check-ins and real-time conversations that provide feedback at the moment it’s needed. TechClass notes that organisations are prioritising regular feedback loops to replace slow, annual cycles that fail to support real agility.
By 2026, many companies will retain an annual review only for pay or regulatory requirements. The meaningful performance conversations will happen continuously, and be embedded into everyday workflows.
The most significant evolution lies not in the employee, but in the manager. Performance management is shifting its emphasis from evaluation to development, eventually leading to a future in which leaders serve as coaches who guide long-term growth.
This new model prioritises growth over numbers. According to research shared by The HR Source, organisations are developing individualised “growth roadmaps” that blend aspirations, skills, and business priorities together to form something altogether more integrated.
These roadmaps both help employees feel valued as individuals and give managers a clearer path forward.
And as continuous, conversational feedback becomes the norm, employees will benefit from more support and psychological safety – making performance reviews feel less like a verdict and more like a shared effort to nurture the employee’s potential.
Technology will amplify these changes – but the key is to scale without losing humanity in the process. This could look like:
By 2026, AI tools will play a significant role in analysing feedback, suggesting learning interventions, and flagging opportunities for growth. Organisations are already beginning to adopt AI-informed review processes to support managers in making thoughtful decisions.
But ethical adoption is key. As McKinsey outlines in its report on learning trends, transparency, fairness and trust must anchor any use of analytics or automation.
Performance management is expanding beyond output and task completion. More organisations are taking a wider view of what “good” looks like, factoring in collaboration, customer impact, wellbeing, and how people build skills over time.
Wellbeing is also becoming a more regular part of performance conversations. Many managers are starting to discuss engagement, resilience, and emotional health as signals of sustainable performance, rather than treating them as separate topics.
Goal-setting is evolving too. Instead of objectives being handed down, employees are increasingly shaping them with their managers. This creates stronger alignment between personal development and organisational priorities, and it can support retention over time.
The shift towards continuous, coaching-based performance will place L&D at the heart of organisational strategy.
L&D teams will:
In this new era, learning becomes a mechanism for performance transformation, and as a result shapes culture and organisational capability. L&D takes a decisive role in driving consistent, people-centred development.
There are clear benefits to this modern approach to performance management, but there’s no such thing as a free lunch. Let’s look at the trade-offs that come with it, and what teams will need to invest to make these new expectations work.
Organisations that proactively address these issues will shift more smoothly into a culture of continuous growth.
Forward-thinking L&D teams can begin building the foundations today. Here are some quick-fire tips to set you up for success when next year rolls around.
Audit the current system. Identify where current feedback cycles cause delays, disengagement, or inconsistency.
Introduce coaching-based check-ins. Run regular conversations that emphasise growth over evaluation. Provide managers with practical coaching tools.
Embed learning in the flow of work. We’ll say it ‘til we’re blue in the face! Learning in the flow of work is the best way to make workplace development effortless. Develop quick, contextual answers for common issues; link learning to real tasks; and enable peer-to-peer learning across your business.
Adopt technology thoughtfully. Select tools that support human development rather than automate judgment. Prioritise transparency and trust when introducing analytics.
Track human outcomes. Monitor engagement, wellbeing, and capability gains alongside productivity measures.
These steps will help organisations move confidently toward a more effective and compassionate performance culture by 2026.
For L&D professionals, the shift towards continuous coaching offers a powerful opportunity to reshape how people learn and grow within your organisations. And as businesses adapt to new expectations, L&D will lead the charge.
Are you ready for this transformation?
Learn about Thrive’s Coaching and Mentoring features. Book a demo today.
Explore what impact Thrive could make for your team and your learners today.
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