But for people-centric, innovative companies that want to stay relevant with the times, performance appraisals are an excellent tool for employee development and engagement. Sometimes performance reviews feel like an annual chore, and they might even prompt feelings of anxiety. Do you remember the last time you sat down for a performance review? Did it make you feel motivated, enthusiastic, and equipped with knowledge and insights to perform better than ever? For most employees, performance reviews are anything but that.