Most employees loathe them; many managers avoid them. Yet high-performing organizations have them, and when properly designed and implemented, they do exactly what they’re intended to do—evaluate employee performance, encourage development, and help organizations achieve their goals.
Unfortunately, too many organizations treat performance reviews as an annual administrative exercise rather than an opportunity to develop their people. Managers rush through the process, employees question its value, and another year passes without meaningful conversations about performance, expectations, and professional growth. When this happens, organizations miss one of the greatest opportunities they have to strengthen their workforce.
For faith-driven organizations, performance management should be about more than measuring results. It should reflect how we value people, encourage accountability, and help employees develop the gifts and abilities God has given them. When we invest in developing employees, we strengthen not only our organizations but also the families and communities they serve.
Feel like you don’t need performance reviews? Here are ten great reasons that should change your mind.
Most employees I meet with have no idea what the top two or three annual goals are for their organization. Think about that for a moment. How can employees contribute to organizational success if they don’t understand what the organization is trying to accomplish?
A great performance management program starts by identifying organizational goals and aligning individual employee objectives with those priorities. I’ve always believed that the overwhelming majority of employees want to do well at work. Unfortunately, too many organizations lack leaders who know how to connect that desire to achieve with the organization’s mission, vision, and goals.
When employees understand how their individual contributions support organizational success, their work becomes more meaningful. They begin to recognize that their efforts matter and that they play an important role in helping the organization achieve its objectives.
Many organizations are not transparent about how employees can advance within the organization. Employees are often left wondering what they need to accomplish to earn a promotion or take on additional responsibilities. This lack of clarity can create frustration and discourage employees who genuinely want to grow professionally.
An effective performance review process helps identify employees who are ready for advancement, those who might benefit from a lateral transfer, and those who require additional development or corrective action. It also provides a consistent and documented basis for employment decisions while supporting individual career planning.
When employees understand what is expected of them and how their performance is evaluated, organizations are better positioned to make fair and informed decisions. This transparency helps build trust between employees and leadership.
Most people really do want to become better at their jobs! They want to know they’re contributing, meeting expectations, and making a difference. Unfortunately, many employees receive little meaningful feedback about their performance until something goes wrong.
Helping employees identify their strengths and weaknesses while clearly communicating organizational expectations allows them to better understand their roles and become more effective. Meaningful feedback reinforces good performance, identifies opportunities for improvement, and encourages employees to continue developing their abilities.
For Christian leaders, this is particularly important. We should view employee development as an investment in people, not simply an exercise in measuring productivity. When employees grow professionally, that growth can positively influence their families, communities, and other areas of their lives.
Instead of creating another “program of the month,” organizations should use performance review information to identify actual training and development needs. Too often, organizations invest considerable resources in training initiatives without first determining whether those programs address the needs of their employees.
An effective performance management system helps leaders recognize skill gaps, identify emerging talent, and determine where additional training will have the greatest impact. Rather than investing in programs simply because they’re popular, organizations can develop training initiatives that address real needs and support organizational objectives.
This approach makes better use of organizational resources while demonstrating a genuine commitment to employee development. When employees see that their organization is investing in their growth, they are more likely to recognize that leadership values their contributions and future potential.
One of the greatest challenges facing organizations is the lack of meaningful communication between managers and employees. I’ve encountered leaders who have gone years without having a substantive conversation with their employees about performance. That should concern every business owner and organizational leader.
Regular performance discussions help correct misunderstandings, clarify expectations, and reinforce organizational values. They also provide opportunities for employees to share concerns, offer ideas, and better understand how their contributions support the larger team.
Performance management also helps employees understand and embrace the values of the organization. When employees know what is expected and recognize how their individual contributions support a common mission, they are better positioned to work together toward organizational success.
Strong teams don’t happen by accident. They are developed through consistent communication, mutual respect, and shared accountability.
Nothing creates frustration faster than employees believing they’re being treated unfairly. When performance expectations are unclear or inconsistently applied, employees begin questioning leadership decisions, compensation practices, and advancement opportunities.
A well-designed performance management program establishes consistent standards for evaluating employees. It helps identify issues contributing to workplace dissatisfaction and provides an opportunity to address those concerns before they become larger problems.
Performance management should never be used to intimidate employees or create unnecessary competition. Instead, it should encourage fairness, accountability, and a positive work environment where employees understand what is expected and how they can succeed.
When employees believe they are being treated fairly and have an opportunity to contribute, organizations are more likely to experience stronger engagement and healthier workplace relationships.
Relationships between managers and employees improve when both recognize their mutual dependence on one another for success. Managers need employees who are engaged and productive, while employees need leaders who provide direction, encouragement, and support.
Performance management creates opportunities for meaningful conversations about expectations, accomplishments, challenges, and future goals. When employees participate in self-evaluation and goal setting, they become more engaged in their own development and begin taking greater ownership of their performance.
These discussions also allow managers to better understand the people they lead. Every employee brings different experiences, abilities, and perspectives into the workplace. Effective leaders recognize these differences and use them to help employees reach their full potential.
Better interpersonal relationships lead to stronger teams, improved communication, and healthier organizations.
Compensation decisions should never be based solely on personal relationships, favoritism, or how long someone has worked for an organization. Employees want to believe their contributions are recognized and that compensation decisions are made fairly.
Performance management provides valuable information to support consistent compensation decisions, including merit increases, incentives, and other forms of recognition. When combined with market compensation data, internal equity considerations, and organizational financial resources, performance information helps leaders make better-informed decisions.
Employees may not always agree with compensation decisions, but they should understand the principles and expectations that influence those decisions. Transparency and consistency go a long way toward building trust.
For faith-driven leaders, fairness in compensation is another opportunity to demonstrate integrity and respect for the people entrusted to our organizations.
Every organization needs a way to determine whether employees and teams are making progress toward established goals. Without regular measurement and accountability, even the best organizational plans can lose momentum.
An effective performance review process provides leaders with a means of monitoring progress, identifying obstacles, and making adjustments when necessary. It also helps employees remain focused on agreed-upon goals and objectives throughout the year.
However, performance management should not become an exercise in micromanagement. The objective is to provide employees with clear expectations, appropriate resources, and the freedom to accomplish their work while remaining accountable for results.
When employees understand their responsibilities and have the tools necessary to succeed, leaders can spend less time managing daily activities and more time developing people and advancing the organization’s mission.
Perhaps one of the greatest benefits of performance management is improved communication between managers and employees. Unfortunately, many managers shy away from difficult conversations about employee performance. Some wait until a problem becomes serious before addressing it, while others avoid the conversation entirely. Neither approach benefits the employee or the organization.
When the right performance management system is in place, especially one that is employee-driven, it encourages regular discussions about accomplishments, challenges, goals, and development opportunities. These conversations help eliminate surprises and create an environment where employees understand how they’re performing throughout the year.
Employees should never have to wait until their annual review to learn whether they’re meeting expectations. Meaningful performance management is an ongoing conversation, not a once-a-year event.
Organizations that encourage open communication are better positioned to address challenges early, recognize employee accomplishments, and develop stronger relationships between leadership and employees.
In closing, my experiences continue to lead me toward supporting employee-driven performance management programs. Programs that rely entirely on managers and organizational leaders have a greater propensity for failure, particularly when those leaders lack the time, training, or commitment necessary to make the process meaningful.
I’ve found that simple, well-designed programs often produce the best results. Performance management should include clearly defined goals and objectives, measurable expectations, behavioral standards, employee development opportunities, and stretch assignments that encourage continued growth.
Most employees don’t want another complicated administrative process. They want to know what’s expected of them, how they’re performing, and what opportunities exist for their future. When employees take ownership of their performance and leaders provide the appropriate support, organizations are much more likely to achieve meaningful results.
For faith-driven organizations, this approach reflects something even greater. We have a responsibility to lead people well, recognize their contributions, and provide opportunities for them to develop the talents and abilities God has entrusted to them. Our responsibility as leaders extends beyond achieving organizational goals. We should also be helping employees become better at what they do, supporting their professional growth, and encouraging them to make a positive difference in their families and communities.
When we accomplish this, we’re not simply building better performance management programs. We’re building stronger employees, stronger organizations, and stronger communities.
How important are employee performance reviews in your organization? Are they helping your employees grow, or have they become another administrative exercise? Share your thoughts in the comments below!
At IHN HR, we help Christian-owned businesses, churches, ministries, nonprofits, and Christian educational institutions develop practical, effective Human Resources programs that align employee performance with organizational goals.
From performance management systems and leadership development to comprehensive HR assessments, we help organizations build strong HR foundations that support their people and their mission.
Visit IHN HR to learn more about how we can help your organization Align. Strengthen. Advance.
Mark A. Griffin is the Founder and President of IHN HR and author of Faith Driven HR. With decades of corporate Human Resources leadership experience, Mark helps Christian organizations align their Human Resources practices with their faith, mission, and organizational objectives.
Originally published May 20, 2016. Updated October 16, 2026.
This article was originally written more than a decade ago. While much has changed in our workplaces and organizations, the biblical principles of servant leadership remain unchanged. This updated version includes additional insights from my years working with Christian organizations and principles shared in my book, Faith Driven HR.
Every organization is different. If you have an HR challenge, leadership need, or simply want to strengthen your organization, we would welcome the conversation.
