This is the time when annual negotiations are actively taking place in many companies in Latvia. However, at the same time, surprisingly, the data shows that such a practice is not self-evident in the labor market – in a considerable number of organizations, annual discussions do not take place at all or only take place with a part of the employees.
According to “Kantar” survey data, 44% of workers in Latvia admit that they do not have annual discussions with their managers. In addition, about a third of employees state that they do not receive constructive feedback on a daily basis – neither when the work is done well, nor when improvements are needed.
Annual discussions should not lead to tears
Of course, annual discussions are not a panacea. Rather, they are a reference point for a new cycle – an opportunity to stop, evaluate what has been done and agree on the future direction, as well as discuss further growth and development opportunities. If there are no regular meetings between managers and employees on a daily basis, the annual meetings will not bring the value we expect from them. In that case, annual talks are like trying to repair a relationship with one talk a year – it’s simply not possible. Employees are much more receptive to feedback if it is structured and regular, rather than a general evaluation once a year.
Regular communication makes it possible to quickly discuss situations while they are still relevant, to correct the course in time and avoid unnecessary surprises during annual discussions. It promotes trust, openness and strengthens the cooperation between manager and employee. The best managers use the annual review as a logical summary of what has already been discussed throughout the year. This reduces stress for both parties and makes the conversation much more meaningful. In one survey conducted in the US, 34% of millennials admitted that annual performance reviews brought them to tears because of the stress and emotional pressure.
Communication that builds successful organizations
Academic research and organizational experience show that performance appraisal is one of the main factors influencing employee motivation. The more clear, honest and respectful the performance conversation, the higher the employee’s engagement and desire to develop.
It is especially important that the discussions are two-way. The employee must have the opportunity to express his point of view – how he evaluates the past year, what was successful, what was the most difficult, what was the cooperation with the direct manager and colleagues. This part of the conversation is often crucial because, as PwC and Gallup surveys show, employees are far more likely to leave their jobs than because of pay, but because they feel unheard and unappreciated.
Annual discussions should end with clarity and confidence. The employee should leave the conversation feeling: “I understand where I’m going. I know what’s expected of me. I have support. My work is being noticed.”
It is this approach – where annual discussions are part of continuous, high-quality daily communication – that builds strong teams and, in the long term, successful organizations.
date:2026-02-12 15:43:00