One in three Kiwi companies do not deem performance reviews as necessary, according to research by recruitment company Robert Hald.

The traditional annual performance review may be falling out of favour, with just 3 per cent of finance leaders believing employees want yearly feedback.

Research has found 33 per cent of directors and those in management believe employees would prefer feedback on a month basis, 29 per cent on a quarterly and 19 per cent on the spot.

Robert Half general manager Megan Alexander said she still believed performance management was an important aspect of human resource policy.


"If done efficiently and thoughtfully, performance reviews can foster a corporate culture that encourages staff career development and it can also be an effective way to improve employee engagement and loyalty," Alexander said.

"However, the chance to deliver feedback to employees and offer career development doesn't need to only happen on an annual basis. "

More than half of Kiwi chief executives believe one-on-one discussions between employees and managers are geared toward career development and can be effective in keeping employees engaged and motivated.

Fifty two per cent saw training opportunities as a source of motivation, with a further 42 per cent stating they believed salary and awards were the biggest source of motivation, with 41 per cent stating they encouraged employees to offer suggestions and put their ideas into practice.

Only 21 per cent of directors refered to employee recognition programmes.

Alexander said there were other, more effective ways to encourage career development.

"There are numerous other ways to keep employees motivated, and businesses need to be prepared to think creatively of other ways to gain the best output, results and loyalty from their staff," she said.

"Employers who receive feedback from their boss can use it as motivation and be able to identify areas for improvement. This will help employees further develop their career and consequently increase their market value."