Annual performance reviews are a good approach to ensure that only the best staff stay with the organisation, so I support their implementation. The long-term success of a firm is unquestionably dependent on the quality of its employees' work. As a result, the organisation should conduct an annual performance assessment to determine which individuals are continuously performing well and which employees are consistently performing poorly. For the long term success of the company, the company must keep those employees who continue to perform well, while letting go of those employees who don't perform well so that they can be replaced by superior experts.
Additionally, the yearly performance review serves as a motivating factor for the company's best employees, who are more likely to continue to improve. They may have already demonstrated their ability to consistently work effectively, but it isn't the end of the road for these personnel. The annual performance review is a great time to talk about what you've learnt and what you'd like to improve on. This year's top performers can be coached by their supervisor to improve their performance in the upcoming year.