Some managers find filling out employee performance reviews to be a chore. But feedback can be useful for workers needing to pinpoint areas where they need to step up their game in order to get that promotion or raise—or perhaps, when things aren’t going well, to keep their job. Going without performance reviews could also leave companies in a tough spot when dealing with employment litigation, because it helps to have a worker’s performance history documented to prove that a company was justified in how it treated an employee.
To get new perspectives on performance (and perhaps take some of the pressure off the managers), some companies are letting a worker’s colleagues chip in by providing feedback for performance reviews too. Peer reviewing has some upsides, but also poses major risks, especially around potential discrimination lawsuits, that companies and their general counsel need to be aware of before they implement such a system.
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