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Performance reviews are often arduous, but they dont have to be. AI tools can enhance the process for both managers and employees, offering new possibilities for efficiency and fairness. From streamlining data analysis to eliminating bias, heres how AI is transforming performance evaluations and employee development across various industries. AI Connects Dots for Comprehensive Reviews AI has significantly improved our performance review process by providing managers with a clearer, more comprehensive view of their teams. Previously, we had vast amounts of data buried across various productivity toolsincluding meeting notes, shared documents, messages, and task updatesbut none of it was truly actionable. Let’s face it: No manager with a team of 10 can realistically remember everything that happened over the last quarter for each person. Today, the way we workhow we communicate, collaborate, and deliverleaves behind valuable signals. AI helps connect the dots across that information to highlight key trends, surface individual contributions, and flag potential blind spots. For employees, it means their impact is more accurately recognized, even if they’re not the most vocal. For managers, it creates a more holistic, data-informed foundation for conversations around performance and development. We also believe this approach can save a tremendous amount of time during review season, when so much energy is typically wasted trying to gather feedback and recall details. Equally important, it helps managers make fairer, more balanced assessments by surfacing the full scope of each person’s contribution. Simon De Baene, CEO and Cofounder, Workleap Streamline Reviews with AI-Generated Questions I used AI to take a client’s company values, create performance questions around them, and then tier the reviews so they were applicable to entry-level employees, individual contributors, managers, leaders, and senior executives. It produced those products for me in minutes. HR professionals or managers who aren’t using AI are wasting time and missing out on major enhancements to their leadership. Kerri Roberts, Founder and CEO, Salt & Light Advisors AI Tools Enhance Review Quality and Satisfaction We have found that managers dread the performance review process as much as employees do. Both struggle with effectively articulating KPIs [key performance indicators], achievements, and challenges in the required documents and during the review itself. This contributes to the second major shared complaint regarding the “paperwork” and workload to complete the process. We encourage managers and employees alike to utilize AI tools to analyze KPI trends, provide tables and charts, and even draft the performance review to save time and reduce anxiety. Additionally, AI tools can suggest appropriate SMART [specific, measurable, achievable, relevant, and time-bound] goals for the next period and/or recommend learning and development opportunities for the employee. As always, useful output from AI requires good input. Furthermore, the employee and manager must carefully review and edit all AI-generated information to accurately and clearly represent reality. However, we have found AI tools have greatly decreased the workload of the performance review process, while at the same time increasing the quality and satisfaction with the results for everyone involved. Joe Palmer, Managing Partner, Prosperity Partners Consulting Balance AI Objectivity with Human Touch One specific example from our organization involved the marketing team, where managers had long struggled with bias and inconsistency in performance reviews. To improve the process, we introduced an AI tool that aggregated peer feedback, performance metrics, and goal progress into clear, objective drafts. It flagged subjective language and suggested more neutral alternatives, reducing bias and saving managers valuable time. However, a new challenge emerged: Employees described the AI-generated feedback as sterileaccurate but impersonal. This concern became especially clear during a departmental feedback session. To address it, we encouraged managers in marketing to use the AI drafts as a foundation, then add personal insights, context, and specific examples to restore a sense of authenticity. This balance between AI-driven objectivity and a human touch made a noticeable difference. Employees received clearer, fairer, and more meaningful feedback, while managers gained a tool that streamlined the process without losing the connection that makes reviews truly valuable. Michael Ferrara, Information Technology Specialist, Conceptual Technology AI Creates Personalized Development Plans Post-Review As part of my current doctoral research in learning and organizational change, I’ve been studying how HR leaders are actively using AI to enhance human-centric leadership practicesand performance reviews have definitely come up. One high-level HR executive I interviewed shared how they used AI to create a personalized learning and development plan immediately after a performance review. The AI helped analyze feedback and skill gaps, then recommended tailored next stepswhat the employee could do now, next, and later to grow in a specific area. The employee later thanked their manager for recommendations that were on that plan, suggesting they felt supported. Another HR executive at a global automotive company used AI-enabled project management tools to analyze team metrics that correlated with performance. She felt this helped her make more objective, data-informed decisions rather than relying solely on instinct. In both cases, AI didn’t replace the human side of leadershipit amplified it by making conversations more personalized, fair, and focused on growth. Bailey Parnell, Founder and CEO, SkillsCamp Voice Notes Capture Nuanced Performance Feedback One thing that has surprised us was how well an AI-powered voice note tool worked during performance reviews not as a replacement for feedback, but as a way to capture tone, nuance, and real-time reflection. In our own staffing agency, where many of our clients rely on private staff-like housekeepers, chefs, and estate managers, soft skills matter just as much as task completion. Managers started using short voice notes to highlight specific interactions, such as how a nanny handled an unexpected visitor at the door or how a housekeeper went above routine to solve a problem without being asked. These moments used to get lost between checklists. On top of everything else, rather than treating reviews like a checklist, the voice notes created a space where real appreciation could be felt. A personal chef once told us that hearing the emotion behind thewords made all the differenceit felt honest, not formal. These notes turned routine evaluations into conversations that captured what often goes unseen. In our world, where intuition and quiet consistency define excellence, giving those qualities a voice brought something far more meaningful than numbers or written summaries ever could. Brooke Barousse, CEO, Lexington Executive and Household Staffing AI Builds Objective Benchmarks for Fair Reviews We’re starting to use AI to build objective performance benchmarks to make our reviews more fair and impartial. Essentially, the AI analyzes key metrics and skill feedback from our own internal, anonymized data across similar roles, comparing performance among our project managers, engineers, or CNC [computer numerical control] machinists, for example. It helps our managers get a better grasp on ratings and performance discussions, as they can use the data to more easily identify if someone is truly excelling in their specific job or spot an area where the entire group could benefit from improvement. Our employees gain a much clearer understanding of the expectations for their role and can see how they’re performing compared to others in similar positions, which can be motivating or help pinpoint areas for development. The AI might highlight that one of our project managers consistently achieves client satisfaction scores that are 10 points higher on average than other PMs performing similar jobs, for instance. It provides solid evidence supporting positive feedback about their client skills, allowing us to go beyond mere gut feelings. Since implementing this data-driven approach, we’ve noticed that our manager calibration meetings for reviews run more smoothly and efficiently, reducing subjective debate time by 30%, because everyone is working from the same baseline comparisons to initiate the conversation. Leon Huang, CEO, RapidDirect AI Analysis Improves Review Conversations We implemented an AI feedback tool that analyzes communication patterns during performance reviews. Managers upload meeting recordings, and the AI provides insights on speaking time balance, interruption frequency, and sentiment analysis. This improved our reviews in several ways: Managers now receive data showing they dominated 70% of conversations (previously unaware), and they adjusted to achieve better balance. Employees report 40% higher satisfaction with review fairness. The AI also flags emotional responses, revealing when discussions trigger defensiveness. Most importantly, the AI tool summarizes action items and creates trackable goals, increasing follow-through by 65%. What surprised us was how the AI revealed that our female team members were interrupted twice as often as male counterpartsan insight that led to meaningful cultural change. The technology doesn’t replace human judgment, but it makes our performance conversations more balanced, actionable, and fair. Kirti Poonia, Founder, Caimera Creative Performance Profile Tracks Progress We’ve always found it challenging to review the performance of roles that aren’t tied directly to strategic goals, like our graphic designer. They don’t set quarterly targets or lead major initiatives. Their work is reactive, based on tasks assigned to them, which makes it hard to define clear goals or track measurable progress. Feedback often felt generic, and improvement was tough to gauge other than informal good jobs. To change that, we set up an AI-enhanced performance tracker using tools we already had access to. We connected Asana to Google Sheets through Zapier, which allowed us to automatically track things like task volume, turnaround time, and revision frequency. We also pulled in feedback from Slack, where a lot of real-time collaboration was happening. Using OpenAI, we ran sentiment analysis on both task comments and relevant Slack messages, which described how work was being received and the tone of the day-to-day communication. Together, this gave us a monthly snapshot we called the Creative Performance Profile. It helped spot progress over time and gave our designer real insights they could reflect on during their review, without needing a complex dashboard. In one case, we saw our designer’s average turnaround time improve by 22% over the quarter, while revision rates dropped by 35%. That led to a great discussion around how they were proactively clarifying briefs earlier in the process, something we wouldn’t have uncovered from the numbers alone. What’s been most valuable is how this gave us a new way to talk about progress in roles where goal-setting has always felt forced. It’s not about ranking team members against each other, but helping them see how their efforts translate into measurable growth. For the first time, our designer walked into their review with stats that reflected their day-to-day work and was able to explain where they could show improvement over the coming year. Not only did this help them grow their individual performance, but oddly, they expressed that it made them feel more part of the team in our planning and goal-setting discussions. It was just an overall win. Kyle Senger, Founder and Lead Strategist, Unalike Marketing AI Triggers Timely Check-ins Between Reviews AI is a powerful tool not only for performance reviews themselves, but also for pre-review and post-review check-ins. Instead of just standard calendar pings, we’ve experimented with systems that trigger automated reminders based on actual work data. For example, a manager could get a nudge to schedule a check-in if an employee’s key goal from the review isn’t progressing on track or if feedback indicates a challenge or bottleneck arising. This way, managers can intervene early and potentially prevent problems rather than waiting months for the formal review. From the employees’ perspective, it means they receive more regular support and feedback throughout the year. When the formal review time does arrive, it feels less like a big reveal because progress and any issues have already been discussed along the way. Traditionally, employees’ biggest complaint about reviews is that they feel like a pointless, arbitrary exercise. However, with AI reminders, it’s easier to take real action and create an ongoing conversation rather than forgetting about reviews a few weeks later until the following year. This approach is more supportive and more productive. Fineas Tatar, Co-CEO, Viva Automated Tools Spot Patterns and Reduce Bias AI has really changed performance reviews for the better. It’s made a huge difference in how managers view the work of their teams. Two tools that I absolutely love are Lattice Analytics and Betterworks. Lattice is useful because it tracks all the performance data automatically and spots pattrns that might be overlooked. It has cut down prep time and helps craft feedback without bias. Betterworks, on the other hand, is useful for picking up wins that people usually forget to mention themselves by analyzing project work and communication. These tools can be game changers for efficiency when implemented, since they focus on actual data instead of just opinions. I know there are a lot of tools out there, but I think it’s best to find one or two that align with your organizational goals and leverage them for maximum benefits. Jacqueline Twillie, Leadership Officer, ZeroGap.co AI Promotes Equitable and Actionable Feedback As a former senior HR leader at a global tech company, I have observed how performance reviews can either foster growth or reinforce inequity. The thoughtful use of AI tools has begun to shift that balance when used intentionally. One impactful example: For a recent client in Big Tech, we introduced AI to support managers in writing more objective, bias-aware feedback. Performance reviews often contain vague or personality-driven comments, especially for women, people of color, and LGBTQ+ professionals. Research from Stanford and McKinsey confirms this disparity. We asked managers to run their draft feedback through an AI tool trained to flag vague, nonactionable phrases and suggest more equitable alternatives. For example, “Indira is a pleasure to work with” might prompt: “Consider elaborating on Indira’s specific contributions or business impact.” This helped leaders offer fairer, more actionable reviews and also created powerful learning moments around unconscious bias. Crucially, we do not see AI as a replacement for human leadership, but as a collaborator. Tools like ChatGPT or Gemini cannot grasp context or individual nuance, and they reflect the bias in their training data. However, they can help standardize fairness, sharpen awareness, and prompt better conversations. Used well, conversational AI can encourage leaders to ask, “Am I being fair? Am I being specific? Am I giving everyone the same chance to grow?” In a system where performance reviews shape careers and compensation, those questions matter. And AI, used wisely, can help us answer them better. Manuel Schlothauer, Founder, HeyManuel.com
Category:
E-Commerce
Since before he took office, President Donald Trump made his disdain for the Federal Emergency Management Agency (FEMA) clear. Now, hes leaving survivors of severe thunderstorms and tornadoes in Arkansas without any federal aid. After large swaths of the South and Midwest were hit by deadly thunderstorms and tornadoes in March and April, Arkansas Republican Governor Sarah Huckabee Sandersa frequent supporter of the presidentrepeatedly wrote to FEMA asking for support in her state. The sheer magnitude of this event created disastrous amounts of debris, extensive destruction to homes and businesses, and resulted in the death of three citizens, and caused injuries to countless others, Sanders wrote in her initial request. (Since that letter was sent, 40 people in the path of the storms were killed.) After reviewing Sanders pleas, which went on to describe the extent of the hazardous weather and hundreds of thousands of dollars in damage, the Trump administration ultimately wrote back that it had determined that the damage from this event was not of such severity and magnitude as to be beyond the capabilities of the state, affected local governments, and voluntary agencies, and that it therefore would not provide supplemental federal assistance. In contrast, in 2023, former President Biden granted Arkansas’ disaster declaration request following a deadly tornado within 48 hours. Given that Arkansas is a red state that voted for Trump in the 2024 election, many were shocked that the president denied Sanders request for aid. But this isnt the only time that Trump has turned down appeals for federal help after severe weather eventsand, while disappointing, the administrations insistence that states should help themselves during times of crisis is in line with its larger efforts to dismantle federal disaster mitigation infrastructure. Several states are denied support from FEMA Since January, Trump has denied several other FEMA requests that have surprised state lawmakers. In March, North Carolinas Democratic Governor Josh Stein wrote to ask for 180 days of extended FEMA support for recovery costs related to Hurricane Helene, which was denied by the Trump administration in April. That same month, Washingtons Democratic Governor Bob Ferguson requested FEMA support for repairs after a bomb cyclone windstorm last November that caused an estimated $34 million in damages. His appeal was also denied. There are very clear criteria to qualify for these emergency relief funds. Washingtons application met all of them, Ferguson said in a statement on April 14. This is another troubling example of the federal government withholding funding. Most recently, in early April, Trump did approve a FEMA disaster declaration in Virginia to help the state recover after severe flooding. However, he refused Republican Governor Glenn Youngkins request for hazard-mitigation money as part of the disaster-aid packagea step that no president has taken in nearly 30 years. The Hazard Mitigation and Grant Program (HMGP) is overseen by FEMA and allocates funds to help communities protect infrastructure from future damage after severe weather, like by elevating flood-prone homes or strengthening buildings in earthquake zones. According to Politico, the program has allocated nearly $18 billion to states to safeguard 185,000 properties. Its an extremely important program for hazard mitigation, Anna Weber, senior policy analyst for climate adaptation at the Natural Resources Defense Council, told Politico. Instead of just rebuilding, were building resilience so were preventing future damages, deaths and injuries. Historically, presidents have paired HMGP funds with FEMAs overall recovery efforts, accounting for about 15% of overall costs for any given disaster response. But, since early April, Trump has stopped approving allocations from the program. A larger plan to dismantle federal disaster response infrastructure This scaling back of HMGP runs parallel to a larger effort within the Trump administration to potentially shut down FEMA altogether. On the 2024 campaign trail, Trump repeatedly spread misinformation about FEMAs response to Hurricane Helene. In office, hes already cut hundreds of staff from the agency, leaving its remaining staffers concerned about their ability to handle upcoming severe weather, like tornado and hurricane seasons. The administration has also withheld FEMA aid to migrant shelters, suggesting that they may have violated a law used to prosecute smugglers. Funding reductions have further resulted in FEMA canceling programs like federal fire training academy courses. In March, Kristi Noem, secretary of Homeland Security, reportedly said that her department planned to eliminate FEMAa notion that Trump has also echoed. And last Monday, Trump named 13 members to a council tasked with recommending potential overhauls at the agency, though its still unclear how significant those overhauls might be. Experts have repeatedly warned that scrapping FEMA would result in a dark future for disaster relief. Now, several statesincluding some that voted for the presidentare getting a first glimpse at that future.
Category:
E-Commerce
Johann Pauwen and Michaele Simmering founded their furniture design business, Kalon, in Los Angeles in 2007. At the time, the U.S. was entering a major recession with many industries headed for total implosion. Pauwen and Simmering, committed themselves to finding local manufacturing relationships and logged countless hours looking for factories that could deliver on their solid wood designs within the United States. It wasnt an easy process, and the founders had to write their own playbook as they went. We really had to beat the streets and find these places on our own, says Simmering. Sometimes literally youd drive past an open roller door, see certain machines or materials, and say, Oh my God, theyre making X, Y, or Z and thats how wed find them. Now, nearly 20 years in, all of Kalons products, except for its baby crib, are made in the U.S. The profitable business supports their family as well as those of their five employees. From the outside, it might appear that Kalon is entirely insulated from the roller-coaster tariff storyline unfolding every day here in the U.S. And to some degree they are: Simmering and Pauwen say their supply chain is strong and reliable and they have few doubts about their ability to deliver their product to customers as expected. Still, the pair is pretty stressed. Theyve noticed that many of their peers in the industry are losing business and, in some cases, carrying out layoffs. Kalon itself marked its worst sales month in history in April, on the heels of Trump tariff news. I cant believe we built this healthy business out of nothing in a really inhospitable industry: two collapses, a pandemic, and multiple wars, says Pauwen. And, a move to domestic manufacturing freaks out the consumer so much, no one will spend money. Maybe that will kill us, even though were U.S.-produced. [Photos: Courtesy of Kalon] Its been an emotional roller coaster Pauwen and Simmering represent an ecosystem of founders whove invested the time and money to make and sell things in the U.S. Theyve cultivated relationships with mom-and-pop manufacturing outfits. Theyve created jobs in the local economy. Theyve made it work in the name of sustainability and community. And now, as the Trump administrations wildly shifting tariff policy has shaken the foundation of how so many small and midsize designers do business both abroad and at home, these founders of American-made brands dont feel any more at ease than their counterparts who sit at the helm of globally produced supply chains. [Photo: Courtesy of Kalon] Whats coming next is truly anybodys guess, and many designers in positions similar to Pauwen and Simmering say theyre just bracing for the next jolt, whether thats due to consumer insecurity, price swings in raw materials, a dearth of manufacturing options, or something else theyve not yet considered or experienced. Its been an emotional roller coaster, says Clare Vivier, founder, CEO and creative director at leather handbag brand Clare V. Viviers company, which is based in Los Angeles, sits at the nexus of Trumps tariffs. She works with five separate manufacturers in L.A., along with 17 manufacturing partners across India, Europe and Asia. The leather and hardware used to make Clare V. bags, says Vivier, come from Italy and Asia respectively. Were a great case study of whats going on, she says. Seventeen years into this company, we have 14 stores and are sold in close to 200 shops around the world. Fifty percent of our product is made in L.A. and the other 50 overseas. [Photo: Courtesy of Clare V.] Vivier says shes structured her business this way out of necessityto tap into different forms of workmanship. We dont have the options to make woven leathers and basket bags here in the U.S. she says. Those artisans arent here. If they were, says Vivier, shed already be using them. These types of skills and jobs, she says, went away years ago, as the industry was retooled for less hands-on, more mechanized manufacturing methods. In other countries, though, artisans (and the infrastructure to train new talent) are still a part of local economies. These are not widget-producing jobs, says Vivier. These are artisans who are trained for many years. [Photo: Courtesy of Clare V.] Vivier has considered bringing more of her manufacturing in-house. One of the manufacturing partners she works with in Burbank, California, is family-owned and run, and the owners are looking for a succession plan as retirement nears. But for Vivier, its just not in the cards. We arent in the position to be a manufacturing business, she says, likening the endeavor to the knowledge jump a writer would have to make in order to suddenly buy and run a printing press. This is a highly specialized industry you cant expect companies to just jump into. . . . My husband is French and we have a place in France. Vuitton has opened a huge training facility outside of our town thereto train artisans. I think, wow. We just arent doing that in the U.S. It would be amazing. [Photo: Courtesy of Clare V.] For Simmering and Pauwen, theyve decided to relocate their crib manufacturing to the United States. And while the decision aligns with their ethos to manufacture in their own communities, it presents a tough balance and some hard decisions around quality and cost. Producing in Germany is roughly on par with the U.S. in terms of material and labor costs, but the level of craft and know-how is significantly higher there, which means the end product is often of superior qualitya failure of America’s industrial policy, says Simmering. The U.S. partner were working with [on the crib] was surprised by the quality of our Eastern European production and acknowledged that matching it would be a challengeand at a much higher cost, at least 150% more. The long game of factory building Some businesses, like East Fork Pottery in Asheville, North Carolina, have built out a manufacturing arm to their business from the start, which has helped hedge the pile-on effect happening with tariffs. Cofounder and potter Alex Matisse says that East Fork makes more than 650,000 pieces of pottery per year in its two factories. We are relatively insulated, says Matisse. Our material supply chain is domestic. Clay isnt expensive, but we put value into it. Our greatest fear is that if we do slide into a recession, it will impact us all. Building factories takes a long time. Its hard to think about when confidence is so unsure. Tyler Hays, artist and founder at furniture maker BDDW, which owns two of its own manufacturing facilities, says hes grateful he made the decision to keep all pieces of his business under one umbrella so many years ago. We have always had the slow business approach, he says. And we are patting ourselves on the back a little bit. But the way this is happening is bananas, with no plan. This should have been a five-year-plan. There should have been funding for small businesses; its reckless. One way Hays has been able to thrive during this time is via an auction platform thats allowed BDDW to circumvent traditional retail altogether, offering up pieces at a discount. Hays says thats kept consumers engaged and buying: Its becoming more popular, but we have seen a 5% reduction in closing price at auction. Still, even with the confusion and chaos around tariffs, many of these founders remain deeply passionate about being American-made and revel in the spirit of community and localization it can foster. For CEO Bill Banta at Decked, being American-made is just baked into his companys brand. Decked designs, makes and sells organizational systems that fit on the beds of pickup trucks. Theres nothing more American than a pickup truck, says Banta. Its core to the customer and theres a lot of expectation that comes with an American-made product. Plus what we make is big and heavy and hard to ship. [Photo: Courtesy of Decked] Banta says some of the machines used to make Decked products are as heavy as 737 aircraft, and that as the company has grown, so has its manufacturing capabilities. The business, which is based in Idaho, Utah, and Ohio, now accounts for close to 400,000 square feet of manufacturing space and tens of millions of investment in injection molding. We are seeing volatility in raw materialssteel, resin, he says. Theyve been all over the place for four or five weeks. Bantas focus has been working with suppliers to stabilize pricing as best as possible so the price for a Decked system is the same when customers initially consider it, as when they actually buy it a month later. Additionally, as consumer insecurity dips, so do truck sales, which is directly tied to the Decked value prop. If that binds up and the automotive supply chain gets whacked by tariffs, well feel that, too. [Photo: Courtesy of Decked] A wholesale shedding of small businesses For now, says Simmering, its too soon to guess what any of this means. It comes down to the mindset of the consumer, she says. Will consumers, at the end of the day, feel it’s more valuable to invest in American-made products? Will the tariffs last? There isnt clarity. Industrial retooling is expensive and a lot of independent businesses wont be able to hang in there to see how it shakes out. One pivot the Kalon founders have made is to offer consulting services to other American businesses looking to make things here, too. Their goal is to help other founders navigate the complexities of local sourcing, supply chain restructuring, and sustainability-first practices with insight grounded in our two decades of experience, says Simmering. From the beginning, part of Kalons mission has been to model a different way of doing thingsto build a values-based business that responds to the realities of our time: the global environmental crisis, mass overconsumption, and wasteful production. This feels like a natural extension of that original intenttaking this as an opportunity to help others navigate this shift and continue working toward transformation from within the industry. And while the dust of tariff swings begins to settle, says Pauwen, larger, big box businesses have the resources to relocate their operations to the U.S., pushing smaller companies out of their manufacturing relationships in one swift movement, able to promise bigger manufacturing runs and longer contracts. At first blush, when the government is saying, Were in this for the Americans, thats a great impulse, says Simmering. I see that we cant all be titans of industry. We want to have national resources and jobs with integrity and meaning. But the way this seems to be executed, its a land grab and happening at the highest levels. There is a wholesale shedding of independent business.
Category:
E-Commerce
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