Companies Urged to Be Cautious in Shift Away From Annual Reviews

More companies are transitioning from annual performance reviews to regular, informal check-ins amid growing demands for transparency and continuous feedback, a shift employment law scholars say carries a litigation risk if not done properly.

Annual reviews have long been a cornerstone of employee management, allowing business leaders to discuss workplace performance issues, set goals, and outline expectations for the coming year. These reviews also inform business decisions—like who should get a raise, be promoted, or let go.

Now, however, companies like Adobe Inc., Accenture plc, and Deloitte are starting to respond to employee criticism that annual or semiannual ...