What role do performance reviews play in talent management?

Performance reviews play a crucial role in talent management by providing ongoing feedback regarding employee performance. This continuous feedback loop helps employees understand their strengths and areas for improvement, fostering professional growth and development. By addressing performance regularly, organizations can align employees with company goals, encourage engagement, and facilitate open communication about expectations and achievements.

This approach promotes a culture of continuous improvement, where employees feel supported and motivated to enhance their skills and contributions to the organization, ultimately leading to better overall performance and higher retention rates. Rather than serving as a strict determination for promotions or salary adjustments, performance reviews focus on developing the employee's potential and providing constructive insights for future performance improvement.