How to Do Better Performance Evaluation

Microsoft recently made headlines by terminating 2,000 “low performers” after rethinking its performance reviews. One story from Business Insider hit me like a freight train: an employee lost his health insurance the night he was fired, while caring for a spouse with terminal cancer—months after being promised a 120% bonus.

It’s a stark reminder of what’s at stake when evaluations go wrong. High performance isn’t just about numbers; it’s about people—people who deserve systems that see them, support them, and help them grow. As founders, tech leads, and HR pros, we can do better. Let’s rethink how we evaluate talent, starting now.

‍

Squid Game Vibes at Work

‍Imagine your annual performance review as a scene from Squid Game—except instead of a giant doll barking “Red Light, Green Light,” it’s your manager with a clipboard and a forced smile. No ominous soundtrack or pink-masked enforcers required, but the tension? It’s still there. Too many reviews feel like a high-stakes test where failure means judgment, not growth. They don’t have to.

Evaluations can inspire collaboration, spark breakthroughs, and ditch the dread. The question is: how do we turn a process that often feels punitive into one that empowers? Let’s break it down—starting with what’s broken.

‍

The Problems with Today’s Evaluations‍

I’ve talked to people leaders across startups, Fortune 500s, and tech giants, and the consensus is clear: most folks hate their current performance evaluation systems. Annual reviews, rigid 1-5 scales, and sporadic 360 feedback from a handful of peers—they don’t cut it. Here’s why today’s approaches fall short:

1. Annual Is Too Late: Checking in once a year is like inspecting your car’s oil annually—you’ll miss the leaks until the engine’s fried. Burnout, misalignment, or frustration can simmer for months before surfacing in a report. By then, your best people might already be eyeing the exit. Gallup says 70% of employees crave more frequent feedback to perform better. Waiting a year isn’t just slow—it’s a gamble with your team’s morale and your business’s future.
2. Numbers Don’t Tell the Story: Rating someone a “3” or “4” on a scale feels clean and objective, but it’s a shallow snapshot. Does a “3” mean they’re disengaged, overstretched, or just bad at self-promotion? Numbers strip away context, leaving managers guessing and employees frustrated.
3. Feedback’s Too Narrow: Traditional 360 reviews often pull from five or six peers—if you’re lucky. That’s a tiny sample size, skewed by politics or recency bias. Quiet contributors get overlooked, while loud voices dominate. It’s not a full picture—it’s a caricature.
4. Misalignment Kills Talent: Some of the most passionate, skilled people get labeled “underperformers”—not because they lack value, but because their work doesn’t fit the company’s short-term playbook or catch the eye of clueless execs. By the time they’re flagged, they’re rarely given the tools or time to pivot.
5. Fear Trumps Growth: Too often, reviews feel like a verdict, not a conversation. Employees brace for criticism instead of expecting support. Managers dread delivering “tough news.” The result? A culture of anxiety, not improvement.

These flaws aren’t just inconvenient—they’re costly. Unseen dissatisfaction tanks productivity and drives turnover. High performance doesn’t thrive in isolation; it needs constant support, clear direction, and a system that’s fairer and more human. So, what can we do about it?

‍

What You Should Start Doing Today

‍You don’t need a fancy tool to start fixing this—human-centric habits can shift the game right now. Here’s what you can implement today, whether you’re leading a team of five or 500:

1. Daily Check-Ins: Drop a quick “How’s your day going?” in Slack or a shared doc. It takes three minutes and opens the door to real talk—wins, blockers, or just a pulse check.
2. Open-Ended Questions: Swap ratings for curiosity. Ask “What’s working for you?” or “Where do you need support?” in chats or surveys. You’ll get richer insights than a 1-5 scale ever could.
3. Proactive 1-on-1s: Don’t wait for problems—schedule regular chats that go beyond goals. Ask how your team feels, not just what they’ve done. Catch small issues before they snowball.
4. Train Managers: Equip tech leads to spot disengagement early—think quieter voices, missed deadlines, or a drop in energy. Give them data on their team and coach them to act, not just observe.
5. Track Attrition Signals: Notice subtle shifts: more absences, less collaboration, or a dip in enthusiasm. Don’t wait for an exit interview—start a conversation or tweak something fast.

These steps build trust and visibility. They’re simple, scalable, and tech-optional. But as powerful as they are, manual efforts alone can’t keep up with growing teams or complex challenges. That’s where AI steps in.

‍

AI Is Revolutionizing Evaluation

‍Artificial intelligence is already transforming how we work—think predictive analytics, personalized learning, and real-time insights. In performance management, AI’s a game-changer. It can sift through mountains of data—task progress, sentiment, feedback—and spot patterns humans might miss. Burnout brewing? AI flags it. Team misaligned? AI highlights it. Need a coaching tip? AI’s got one tailored to your context.

Unlike static annual reviews, AI-driven tools deliver a living, breathing view of your team. They combine hard metrics (like project completion) with soft signals (like morale) for a fuller picture. And they don’t just dump data on your lap—they suggest actions, from nudging a manager to check in to recommending a skill-up workshop. For startups and enterprises alike, AI scales what humans start, turning good intentions into consistent impact. But not all AI tools are created equal—meet the one that’s rewriting the rules.

‍

L10: The First Daily 360° Check-In Platform‍

Enter L10—the pioneer in daily 360° performance check-ins. This isn’t your grandpa’s HR software. L10’s mission is bold: create a world where everyone can thrive in their own way. How? By ditching outdated review cycles for real-time insights, continuous feedback, and meaningful support. Here’s what sets L10 apart:

1. Daily Pulse: Its 3-minute check-ins capture your team’s mindset every day—engagement, challenges, energy. No more waiting a year to hear what’s up.
2. Full-Circle Feedback: L10 pulls 360° insights from peers, managers, and self-reports, updated daily. It’s a complete view, not a skewed sample.
3. Agentic AI: L10 doesn’t just collect data—it thinks. Its AI understands your company’s unique needs and industry best practices, spotting root causes (like burnout or confusion) and suggesting tailored fixes.
4. Conversation Fuel: Daily data powers better 1-on-1s, so you address issues before they fester—whether it’s recognition, support, or a course correction.
5. Scalable Impact: From scrappy startups to global enterprises, L10 grows with you, keeping your team at their best.

L10 isn’t about fear or judgment—it’s about empowerment. It’s like a performance coach for every team member, turning feedback into action and struggles into growth. When people feel seen, they don’t just stay—they soar.

‍

Take the Next Step with Us‍

You can start today with the habits above—no tech required. They’ll build trust and catch problems early. But to scale that impact, L10’s your edge. It takes the guesswork out of performance management, giving you daily clarity and smart recommendations to keep your company humming. Don’t let another annual review slip by with unseen dissatisfaction brewing—or worse, losing talent who could’ve thrived with the right support.

Sign up for a free trial or schedule a demo at L10’s website. Your team’s potential can’t wait—neither should you. Let’s build a workplace where high performance isn’t a fluke; it’s a habit. Join us in making that happen.

‍