Most organizations understand the value of conducting regular performance reviews. But the challenge lies not in whether to do them, but in how. Choosing the right structure for your reviews can have a significant impact on employee engagement, development, and even retentiofn. Broadly, there are two core approaches: numerical and narrative. Each brings distinct advantages and drawbacks, and in some cases, a hybrid approach may be worth considering.
Numerical performance reviews rely on ratings or scores assigned to specific performance categories. These might include an employee’s knowledge of their role, ability to meet deadlines, productivity levels, or communication skills. In many organizations, these scores are averaged or weighted using formulas to produce an overall rating. The appeal of numerical reviews is their efficiency and consistency. They offer a straightforward way to track performance across teams, identify patterns, and make comparisons between departments or over time. This method is particularly effective in roles where performance is easily quantifiable, such as sales or operations, or where large teams perform similar tasks.
However, numbers can oversimplify. Roles that require creativity, collaboration, or strategic thinking often don’t fit neatly into a rating scale. There’s also the question of interpretation. Two supervisors might score the same behavior differently, introducing bias into what’s meant to be an objective process. And from the employee’s perspective, a single number may feel reductive or ambiguous, especially if the rationale behind it isn’t explained.
Narrative reviews, by contrast, offer a more personalized account of an employee’s contributions over the review period. Rather than checking boxes, managers provide written feedback that highlights accomplishments, pinpoints areas for growth, and contextualizes performance. This approach tends to foster deeper conversations between managers and employees, often leading to clearer developmental goals and a stronger sense of being seen and understood. Narrative reviews also support a culture of engagement—when employees feel their work is acknowledged in detail, they’re more likely to stay motivated and aligned with organizational goals.
But there are trade-offs. Narrative reviews require significantly more time and effort, particularly in organizations with large teams or limited management bandwidth. They also make it harder to spot trends at scale or benchmark performance across the organization. Subjectivity remains a concern here as well—how clearly and fairly a review is written often depends on a manager’s communication skills and personal biases, which can vary widely.
Given these complexities, many employers are exploring blended models. A hybrid performance review might pair numerical ratings with narrative commentary, offering the structure of quantifiable feedback along with the depth of written reflection. A 2024 study published by the Academy of Management found that narrative-only reviews were most likely to be perceived as fair and motivating, particularly when the feedback wasn’t tied to compensation. However, numerical or hybrid formats were viewed more favorably in cases of strong performance or when feedback was linked to bonuses or promotions. The takeaway: one size rarely fits all.
Ultimately, the right performance review model depends on your organization’s size, culture, and operational priorities. Some departments may benefit from a structured, numerical system, while others, particularly creative or strategic teams, may thrive with narrative feedback. In some cases, you may use different approaches in different parts of the organization, depending on the goals of the review and the nature of the work. A thoughtful performance review process not only promotes individual accountability and growth, but it also sends a clear signal about what your organization values. It can enhance employee morale, attract top talent, and drive long-term success. If your current system isn’t delivering the results you expect, it may be time for a careful reassessment.
Reynolds + Rowella’s HR Consulting supports employers in designing and refining performance review systems that align with business goals, workforce needs, and compliance standards. Contact us to explore what a more effective approach could look like for your organization.
Reynolds + Rowella is a regional accounting and consulting firm known for a team approach to financial problem solving. As Certified Public Accountants, our partners foster a personal touch with our clients. As members of DFK International/USA, an association of accountants and advisors, our professional network is international, yet many of our clients have known us for years through the local communities we serve. Our mission is to operate as a financial services firm of outstanding quality. Our efforts are directed at serving our clients in the most efficient and responsive manner possible, delivering services that exceed the expectations of those we serve. The firm has offices at 90 Grove St., Ridgefield, Conn., and 51 Locust Ave., New Canaan, Conn. For more information, please contact Elizabeth Bresnan at 203.438.0161 or email.
