The Hidden HR Blind Spot: Why Your Performance Reviews Might Be Failing Your People
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For over three decades, performance management in HR has followed the same script.
At the end of every quarter, leaders gather to answer two key questions:
1. How did the team perform in this month or quarter?
2. Who were the top and bottom performers?
2. Who were the top and bottom performers?
These reviews are usually structured around calendar months—March, June, September, December—because that’s how we report financials, growth metrics, and business outcomes.
And to be fair, calendar-based reviews are essential when it comes to business performance. Sales numbers, customer acquisition, revenue—they all need fixed timeframes. But here’s the problem…
💣 That same method is being used to evaluate people performance.
And it’s deeply flawed.
The Core Problem: Comparing Apples and Oranges
Imagine a company reviewing the performance of a sales team in March. The cohort includes:
- Employees who joined 2 years ago
- Others with 10 months in the system
- A large chunk of freshers with just 1 month of experience
Now, all of them are being evaluated using the same yardstick: their performance in March.
That means a brand-new hire is being measured alongside a veteran who’s mastered the process, built client rapport, and cracked the success formula through months of trial and error.
This isn’t just unfair. It’s ineffective, inaccurate, and misleading.
A New Lens: Residency-Based Performance Assessment
To fix this blind spot, we must stop asking:
❌ How did everyone perform in March?
✅ How do employees perform in their 1st month, 3rd month, 6th month, 12th month?
Business vs People Performance: Know the Difference
| Metric Type | Use Calendar Month? | Use Residency Month? |
|---|---|---|
| Business Results | ✅ Yes | ❌ No |
| People Performance | ❌ No | ✅ Yes |
Closing Thought: Fix the Lens. Not the People.
Performance isn’t flat. It evolves. And if we don’t account for where someone is on their journey, we’ll never truly know how well they’re doing—or how far they can go.
