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Annual reviews shouldn’t feel like a surprise attack followed by a tiny raise and a big dose of resentment… but for a lot of small and midsize businesses, that’s exactly what happens. In this episode of The Business Fix, Chrissy Myers (CEO of Clarity HR) and Josh Troche (marketing & operations guy) break down why traditional performance reviews are broken—and how to turn them into one of your strongest tools for culture, clarity, and growth. You’ll hear Josh’s own “top performer gets blindsided” review horror story, then Chrissy walks through research from Gallup and the Journal of Applied Psychology on why annual, form-heavy reviews don’t actually drive performance. From there, they introduce the 3 A’s framework—alignment, anticipation, and advancement—and show how to turn reviews from a judgment day into a roadmap your people can actually use. From the CEO and operations side, they dig into: Why the annual review should be “dead” as a once-a-year event How to use quarterly check-ins and a simple 3-tier system (below / meets / above expectations) instead of bloated 1–5 scales How to document performance fairly so you’re not scrambling when tough calls or raises come up Why “meets expectations” is not an insult—and what happens when everyone is magically “above average” The danger of “money ear”: why mixing compensation with feedback makes people stop listening They also rapid-fire some hot topics every owner and manager wrestles with: Self-evaluations – helpful reflection or just checkbox theater? Email/Slack reviews – when quick feedback is good and when it’s just lazy Peer reviews – how to avoid turning them into a hornet’s nest By the end, you’ll have a simple way to think about great reviews using the 3 C’s of leadership: Clarity (what success looks like), Consistency (no surprises), and Care (growth actually matters here). Combine that with one-page forms and recurring calendar blocks, and reviews stop feeling like homework and start feeling like leadership in action. If you’re a business owner or manager who dreads review season—or you’re trying to build a healthier culture without drowning in HR paperwork—this episode will help you stop checking boxes and start building people. 👉 Continue the conversation & get support: Visit thebusinessfix.com to connect with Chrissy and Josh, get resources for your team, and share your own review horror (or success!) stories. And if this episode helped you rethink your review process, please follow, rate, and leave a review—your feedback really does help us help more leaders like you. Chapters (YouTube / Podcast Timestamps) 00:00:00 – The annual review horror story 00:01:06 – After the intro: why everyone dreads review season 00:03:30 – The annual review should be dead 00:05:08 – News & data: Gallup proves the process is broken 00:07:15 – Reviews as a roadmap, not a report card 00:08:33 – No-surprises rule & research on frequent feedback 00:12:11 – Reviews aren’t the villain—poor leadership is 00:15:25 – Quarterlies, 3-tier ratings, and documentation that protects everyone 00:31:21 – Money ear: separating reviews from raises 00:38:44 – One-page forms, trained managers & the three C’s of leadership 00:40:55 – Quick shots: self-evaluations & email/Slack reviews 00:44:37 – Peer reviews, surveys, and asking for real feedback Are you looking to move your business forward? Make sure that you follow us here and also visit https://www.businessfixpodcast.com/home