Many companies these days are simply eliminating performance reviews. They say they are outdated, the data they yield aren’t helpful, and the process puts undue stress on employees and managers alike. However, by doing away with the traditional performance review, many companies are actually seeing negative results in performance and morale. According to Leslie Apony, manager of customer value and adoption at SAP/SuccessFactors, many organizations do not understand the cascading implications of eliminating performance reviews. “The issue isn’t just about pay-for-performance. Companies that remove ratings suddenly don’t know how to handle succession, compensation and development programs,” she said. “You have to look at ratings in the context of having an integrated performance management approach.” Instead of eliminating these reviews entirely, it would be wise to take more of a “coaching and calibration” approach, taking the ratings out of the goal-setting process, and using them instead to identify and invest in high-performing employees. By keeping the review process frequent and ongoing, organizations are realizing these reviews can yield practical data to help managers make informed staffing decisions.