Rethinking HR Performance Reviews with Natalie Kroll

Performance reviews have long been a staple of workplace culture. But let’s be honest, most employees and managers don’t look forward to them. Too often, reviews feel like a time-consuming exercise that adds little real value. In fact, Jack Altman, author of People Strategy, notes that the traditional review model wastes both time and money. According to Gallup, poorly executed performance reviews can cost companies between $2.4 million and $35 million in lost hours per 10,000 employees each year.  It’s a staggering number and a signal that it’s time for a change.

A Fresh Approach with AI

And so, I decided to rethink how a major tech company supports employees during review season. Instead of relying on static templates, long prep docs, or outdated one-size-fits-all guides, I tapped into AI.

The result? A super user-friendly “Performance Review Coach” powered by ChatGPT. This digital coach acts as a personalized guide for employees as they prepare for their upcoming conversations. It brings together all the relevant context, review processes, growth opportunities, and the spirit of thoughtful reflection, into an interactive, conversational format.

Rather than leaving employees to wonder how best to frame their accomplishments, approach constructive feedback, or set new goals, the coach makes review prep feel less stressful and more meaningful.

Why This Matters

This isn’t just about using a new technology. It’s about shifting the purpose of performance reviews away from bureaucracy and toward impact. Traditional models often felt like compliance checkboxes, draining energy without driving engagement or growth.

By leveraging AI, we are transforming what was once a dreaded process into one that can help employees feel supported, confident, and prepared. A tool like this doesn’t replace the human aspect of reviews; it enhances it, freeing up time for managers and employees to focus on real conversations about performance, growth, and alignment with company goals.

The Bigger Picture for HR

Altman’s People Strategy makes a compelling argument: companies thrive when people programs stop being “time sinks” and start creating business value. AI tools like this performance review coach are a perfect example of how HR can lead that shift.

Instead of reviews being a backward-looking snapshot, they become a forward-looking opportunity for learning, growth, and alignment. The real win is cultural, helping employees see the process as a moment of empowerment rather than obligation.

Emerging Trends and Best Practices

AI-driven performance management is gaining traction fast, with more than 70% of companies prioritizing AI integration in their business plans, and the market for AI-powered systems expected to grow 25% annually through 2025. Modern solutions collect and analyze performance data in real time, allowing managers to provide continuous feedback and make more objective, timely decisions. Leading organizations like Google and Microsoft are already seeing higher engagement and better goal achievement by implementing these systems.

Today’s most effective platforms facilitate regular check-ins, goal tracking, and predictive analytics that help leaders spot high performers or engagement risks early. Features like AI-generated feedback phrases and SMART goal suggestions provide structure, reducing the burden on managers to craft every review from scratch. Moreover, the best tools maintain transparency, ensure security, and integrate smoothly with existing HR platforms, critical for driving adoption and building trust.

To maximize the value of AI, HR teams should prioritize training managers on these new tools and routinely gather feedback to fine-tune the process. Research shows that organizations creating these feedback loops achieve up to 15% higher engagement scores and 12% higher productivity on average.

Performance reviews may never be “everyone’s favorite meeting,” but with intentional use of AI, they now have the potential to finally deliver on the promise of driving personal and organizational success.

Reimagine Performance Reviews with AI

Don’t let outdated review processes drain time and morale. With Natalie Kroll’s AI-powered approach, performance reviews become empowering, insightful, and aligned with business goals.

Discover how AI can transform your review cycle—connect with Natalie today.