As organisations adopt agile ways of working, real-time goals and faster feedback loops, the traditional model of annual or biannual performance ratings is increasingly being questioned. Ratings were originally designed to bring structure, fairness and comparability to performance management. Yet in fast-moving roles today, they often struggle to capture the continuous learning, effort and course correction that happen throughout the year.
At the same time, continuous feedback is gaining ground. It promises faster alignment, stronger development conversations and greater transparency between managers and employees. However, it also raises practical questions—how do organisations ensure consistency, reduce bias and make objective decisions around promotions, compensation and succession?
For many HR leaders, the answer is not about choosing one system over the other. Instead, the real shift lies in finding the right balance—where structured ratings coexist with ongoing feedback to create a more meaningful performance culture.
Jaidip Chatterjee, group chief human resources officer, Reliance Infrastructure
No—ratings alone are outdated. They need continuous feedback to stay relevant.
Performance ratings were originally designed to bring structure and comparability. But in today’s agile workplaces they cannot stand alone. Many organisations, including ours, are gradually moving away from legacy practices such as bell curves and forced normalisation towards more transparent and dynamic approaches.
Today, feedback can come from multiple stakeholders—managers, peers, cross-functional teams and even internal or external customers. Modern HRMS platforms allow organisations to capture these insights in real time through mechanisms such as 360-degree feedback and anytime feedback.
This multi-stakeholder view creates richer insights into both performance and potential. When feedback is continuous, organisations can have stronger talent discussions, design more targeted development interventions and build development plans that genuinely unlock potential.
The solution is not to scrap ratings but to complement them with continuous feedback. However, this approach works only when leaders have the discipline and capability to give meaningful feedback regularly. When feedback becomes an ongoing practice rather than an annual ritual, organisations move from a reactive appraisal culture to a proactive culture of learning, growth and mobility.
Takeaway: Ratings provide structure, but continuous feedback adds depth.
Nitin Barekere, Vice President – HR, Omega Healthcare
Yes—but the performance model must match the talent segment.
Organisations today are at an inflection point where structured evaluations and continuous feedback models coexist. At Omega Healthcare, we have designed our approach to reflect the different needs of different employee cohorts.
For more mature talent—managers and supervisory staff—we continue with a biannual evaluation system. These professionals work in largely self-governed teams and their competence levels are well established. Empowerment also means trusting people to perform without constant oversight.
Our approach is different for early-career employees. When we hire freshers from campuses, we recognise that they need more guidance, coaching and visibility into their growth journey. From day one, they receive a clear roadmap of how their careers can progress in the first few years.
We also introduced quarterly appraisals for them. Compensation growth is linked to these reviews. For instance, someone who joins with a salary of Rs25,000 per month could see it move to Rs 27,000 or Rs 29,000 within months based on performance.
This approach achieves two outcomes. Employees do not have to wait an entire year to see recognition, and the organisation can guide and upskill them more actively during the early stages of their careers. Rather than choosing one system over the other, we have adopted a hybrid model that fits different talent segments.
Takeaway: One performance system cannot fit every employee group.
Beena Jacob, Chief Human Resources Officer, Blue Dart
Yes—but only when integrated with continuous feedback.
Performance ratings continue to play an important role in large organisations because they provide structure, fairness and comparability across teams and roles. However, relying only on ratings rarely captures the full picture—especially in dynamic roles where learning and course correction happen continuously.
That is where continuous feedback becomes essential. Organisations should not see ratings and feedback as competing systems but as complementary ones.
Ratings help link outcomes to decisions around compensation, promotion and career progression. Continuous feedback, meanwhile, enables employees to learn, improve and align themselves with evolving expectations.
The real shift happens when feedback becomes a habit rather than an event. When managers and employees engage in ongoing performance conversations, performance management stops being a once-a-year scorecard exercise.
Instead, it becomes a journey of continuous improvement where people keep learning, adapting and growing.
Takeaway: Ratings enable fairness; feedback drives development.