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Every year, right after performance reviews, many companies experience a wave of resignations – especially from their top-performing employees. Despite being highly rated and often recognized as key contributors, they still choose to leave. What’s really happening? Why are the very people companies most want to retain the ones who leave the fastest?
This article dives into the underlying reasons behind the post-review resignation trend and offers practical solutions to help businesses retain their top talent more effectively.
1. High performance, low reward
For top performers, delivering excellent results is not a challenge – it’s a standard. However, when the rewards don’t match the effort and outcomes they deliver, disappointment is inevitable.
The gap between reward expectations and reality often leads to dissatisfaction after reviews.
Many companies still maintain a "balanced” or budget-controlled approach that lacks flexibility in rewarding outstanding contributors. In such environments, top performers feel like they’re being treated the same as those who merely meet expectations. The result: they quietly plan their exit post-review.
2. Lack of transparency and fairness in evaluations
One of the biggest motivation killers is the lack of transparency in performance evaluation processes. When top employees feel that their scores, feedback, or rankings do not truly reflect their contributions, they start questioning the fairness of the system.
A lack of transparency in evaluations erodes top performers’ trust in the organization.
In many cases, evaluations are influenced by personal biases, internal politics, or poor management. When talented people don’t see fairness, they lose trust in the system – and for them, finding a more transparent workplace is entirely possible.
3. No clear career path after the review
Performance reviews shouldn’t just measure past performance – they should also reaffirm an employee’s future growth path within the organization. However, many businesses stop at assigning scores and fail to answer key questions: What’s next? Promotion? New role? New projects? Skills to develop?
For high performers, standing still means falling behind. If they don’t see a clear path forward, they’ll seek it elsewhere.
4. Poor communication from managers
Performance reviews are a time when managers need to connect deeply with employees – not just to give feedback but to inspire and encourage. However, many managers lack effective communication skills or treat reviews as mere formalities.
Managers play a pivotal role in retaining talent post-review.
A dry, checklist-style review session that lists strengths and weaknesses without genuine appreciation or constructive feedback will make employees feel unrecognized. High performers – who thrive on meaningful recognition – will become discouraged and consider new opportunities.
5. No signs of improvement within the organization
Top performers are often proactive in suggesting ways to improve processes and performance. However, if they don’t see any positive change – especially after performance reviews – they’ll feel ignored.
Consistently giving feedback without seeing action is one of the key reasons talented employees lose trust. They’ll start looking for organizations that are willing to listen, adapt, and act.
6. Attractive offers from competitors
Top talent is always in demand. And nothing drives them to explore new opportunities more than feeling underappreciated in their current organization. Competitors often approach employees right after review cycles – when they’re most reflective and susceptible. A better offer – in pay, role, or environment – can quickly tip the scale.
Top performers have options and will leave if a better opportunity arises.
7. Loss of trust in leadership
Sometimes, it’s not just about direct managers. Some top performers leave because they’ve lost faith in the company’s vision, strategy, or leadership style. The review cycle is when they evaluate their personal goals against the organization’s direction. A company lacking clear strategy, consistency, or effective communication won’t inspire top talent. They don’t leave because of salary – they leave because they no longer feel they belong.
What should businesses do to retain top talent after performance reviews?
Here are some practical solutions:
7.1. Build a Fair and Transparent Evaluation System
- Use clear criteria supported by measurable data
- Implement 360-degree evaluations: self, manager, peers
- Encourage two-way feedback instead of one-way scoring
7.2. Link Evaluations to Meaningful Rewards
- Ensure reward mechanisms are flexible and reflect actual contributions
- Build clear promotion and salary pathways
- Implement retention strategies for top performers post-review
- A transparent reward system is key to keeping talent engaged.
7.3. Train Managers on Effective Feedback Skills
- Provide training on one-on-one sessions and constructive feedback
- Encourage managers to understand employees, not just assess them
- Use performance reviews as moments to inspire, not just critique
7.4. Establish Clear Development Paths for Each Individual
- Discuss personal goals during the review
- Propose new projects or roles to develop new skills
- Make sure high performers always have opportunities to shine
7.5. Acknowledge, Listen, and Act on Employee Feedback
- Host post-review feedback sessions
- Prioritize improving tools, processes, and the work environment
- Show that employee input leads to real changes
Employees who feel heard are more likely to stay long-term.
Top performers leaving after a performance review is not unusual – it’s a wake-up call that there may be deeper organizational issues at play. They’re not leaving because they’re underperforming – they’re leaving because they don’t feel their value is recognized or see a clear future within the organization.
Retaining top talent goes beyond pay and perks – it requires fairness, growth opportunities, meaningful recognition, and emotional connection. When businesses get this right, performance reviews become not a farewell checkpoint – but the beginning of a deeper, long-term commitment.
Looking to retain your top talent after performance reviews? Contact HR2B – a trusted expert in HR solutions and performance management – for the right strategy tailored to your business needs.
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