After the Performance Review: Keeping Your Team from Jumping Ship
- Mayank Sharma
- 2 days ago
- 16 min read
Whether you're a startup founder, HR professional, C-suite leader, or mid-level manager, you might recognize this scenario: It’s a week after performance review season. You’ve given out feedback and hard-earned raises. You breathe a sigh of relief – job well done – only to find one of your top performers updating their LinkedIn or casually mentioning an “exciting opportunity” elsewhere. Uh-oh. What gives?
In many organizations, post-review turnover is a real (and painful) phenomenon. Employees, it turns out, often see the period right after performance appraisals and annual raises as the perfect time to explore greener pastures. In this long-form narrative, we’ll dive deep (with a dash of wit and relatable insight) into why this happens and, more importantly, how a well-structured employee growth plan can keep your team excited, engaged, and not polishing their resumes. Let’s turn those post-review blues into a springboard for renewed enthusiasm.
The Post-Review Retention Problem
Picture this: Bonus day arrives. You distribute the annual bonuses and salary increments, expecting smiles and maybe a celebratory cupcake or two. And yes, your employees are appreciative. But for some, another thought bubbles up: “Now that I’ve got my raise/bonus, is it time to move on?” It’s not in your head – this is a documented trend. A TimesJobs survey found 62% of employees wanted to switch jobs right after their performance appraisals. Yikes! That’s more than half your team potentially eyeing the exits every time review season wraps up.
Many employees eye the exit right after collecting their year-end rewards, leaving companies scratching their heads. In the same survey, 64% of those wanting to leave said it was dissatisfaction with the appraisal that triggered the urge. In plain terms: if employees feel their review or raise was unfair or underwhelming, they’re tempted to pack their bags. The remaining percentage? They admitted they were tempted to jump ship simply to “encash the salary hike” – meaning they got a bump in pay and figured they could leverage that new, higher salary as a springboard to an even better-paying job elsewhere. It’s almost ironic: you give a raise expecting gratitude and loyalty, but for some folks it’s the cue to update their resume.
And it’s not just anecdotal. Other data underscores the issue. One study noted 85% of employees would seriously consider quitting after an unfair performance review. So if the review process is perceived as biased or the raise as too low, the damage is done – your talent is mentally out the door, if not physically yet.
Let’s also not forget timing. Many companies align raises and bonuses with the end of the year or quarter. Employees often patiently (or not-so-patiently) wait for that payout and then feel free to explore options. It’s no wonder HR departments brace for a wave of resignations as soon as bonuses hit the bank. As one HR expert put it during the booming job market: “Anyone waiting to quit until after they’ve received their bonus is about to jump ship.” It’s an annual pattern. Employers even have a term for it – “post-bonus resignations” – and they fear it every year.
So, if you’ve noticed an uptick in two-week notices right after appraisal season, you’re not imagining things. Post-review attrition is real, and it can be brutal. You invest time in evaluations, give what raises you can, and still lose people. Why does this keep happening, and what can you do to stop it?
Why Employees Leave After Reviews (It’s Not Just the Money)
Let’s unpack the motivations swirling in employees’ minds post-review. Sure, money is a factor – but it’s not the only factor, and often not even the biggest one in the long run. Here are the common reasons (prepare to nod along):
“My raise was a joke.” If an employee felt they deserved more, a modest 3% merit increase can actually demotivate. They think, “If I’m only worth this much here, maybe I’ll be worth more elsewhere.” The data backs this up: a huge chunk of those seeking to leave after appraisals are driven by raise dissatisfaction. It stings to feel undervalued.
“I got a good raise… imagine what I can get outside!” On the flip side, even a decent raise can spur wanderlust. How so? Suppose someone’s salary went from X to Y. Now Y is their new baseline – they can shop it around in the job market. Other employers might offer Y + a lot more. In other words, your well-intentioned raise becomes a stepping stone for a higher offer somewhere else. It’s the “encash the hike” mindset – they’ve leveled up, and now they want to cash in that chip with a new company.
Lack of growth or advancement. This one is huge and often overlooked in the hubbub of percentages and pay. Money matters, but career growth matters more to many. If the performance review conversation was all about past performance and this year’s raise, and nothing about future opportunities, an employee might feel “Is this it? Is this all I can expect here?” Especially ambitious folks (looking at you, high-performing millennials and Gen Zers) will bolt if they don’t see a path upward or onward. In fact, research indicates nearly three-quarters of millennial and Gen Z workers would consider leaving their jobs if they don’t find enough opportunities for skills development and growth. That’s right – 75%! These generations (soon to make up the bulk of the workforce, if not already) crave growth like oxygen. If they can’t climb, they’ll climb out.
The review itself prompts reflection. A performance review isn’t just an evaluation; it’s also a time of self-reflection for many employees. They’re thinking about their achievements, their frustrations, and their future. It’s like New Year’s resolution time for careers – “What have I accomplished, and what do I want next?” If what they want next doesn’t seem attainable at your company, the thought creeps in: maybe it’s time to move on. A dull or discouraging review can be a wake-up call that lights a fire under their job search.
Emotional disconnect or feeling unappreciated. Beyond the tangible raise, how the review was handled makes a difference. Did their manager recognize their hard work? Did they feel genuinely appreciated or just given a checklist of metrics? Employees who feel like just a cog in the machine, or who felt blindsided by feedback (“I had no idea my work wasn’t meeting expectations until now!”), can grow disillusioned. A lackluster review conversation can do more damage to morale than a small raise does to the wallet. Consider that only 45% of workers say performance reviews actually motivate them to improve – the rest are left cold or even resentful. And if the process feels unfair or poorly done, we already saw that it pushes people out the door (85% would consider quitting after an unfair assessment).
In short, after a review cycle, employees are at a crossroads. The review shines a spotlight on their situation – good or bad – and many start pondering: “Do I see a bright future here or elsewhere?” If the answer is “elsewhere,” you get a resignation letter on your desk. If the answer is “here,” they buckle down re-energized. How do we tilt more people toward the latter? Hint: not just by throwing money at them (that helps only so much), but by throwing opportunity at them.
Beyond the Paycheck: Why Growth Plans Matter More Than Ever
It turns out that the antidote to post-review attrition isn’t simply bigger raises or retention bonuses (though competitive pay is important). The real game-changer is something more long-term: a well-structured employee growth plan. Think of it as giving your employees a vision of their future with your company, not just a reward for their past year.
Here’s the fundamental truth: if employees see a bright future with you, they’re far less likely to look for a future elsewhere. It sounds obvious, yet so many companies miss this. According to HR surveys, the number one reason people cite for quitting is often lack of career advancement. In fact, one recent Forbes article flagged lack of career growth as potentially the top cause of turnover in 2025, with a strong majority of workers saying they’d leave if they couldn’t develop and advance. On the flip side, organizations that heavily invest in their people’s development tend to retain their top performers more effectively. It makes sense – if you feel your company is helping you become the best version of your professional self, why leave?
Let’s clarify what a “growth plan” is. We’re talking about a personalized, documented plan for an employee’s development and career progression. This isn’t a vague “keep up the good work, you’ll go places!” platitude. It’s a concrete roadmap:
Skills & Training: What new skills does the employee want or need to acquire this year? Perhaps a course in data analysis, or a certification, or learning a new programming language – whatever adds to their toolbox.
Opportunities & Projects: What projects or stretch assignments can they take on to grow? For example, leading a new initiative, mentoring junior staff, rotating into a different department for cross-training, etc.
Career Path & Goals: What roles do they aspire to, and how can they get there? Maybe today they’re a sales rep who wants to become a sales manager in 2 years. The growth plan will outline the milestones to achieve that – e.g., hit certain targets, take leadership training, shadow a senior manager – and how the company will support those steps.
Regular Check-ins: Unlike the once-a-year performance review, a growth plan involves ongoing coaching and feedback. It’s a living plan that you revisit every few months to track progress and adjust.
In essence, a growth plan shifts the focus from “here’s what you did last year” to “here’s what you can achieve in the next few years (and how we’ll help)”. It’s forward-looking and optimistic. And guess what? That’s exciting for employees! It replaces the post-review question of “Do I have a future here?” with “Wow, I do have a future here, and I can’t wait to see it unfold.”
How a Growth Plan Keeps Employees Engaged (and Loyal)
Engagement is the secret sauce. When employees are engaged – meaning they feel motivated, involved, and enthusiastic about their work and future – they are way less likely to quit. How much less? Try 87% less likely to leave compared to disengaged colleagues. That’s a staggering difference. A well-crafted growth plan is essentially an engagement plan. It tells the employee, “We care about your development and we’re investing in you.” That message is gold.
Employees who see a pathway for growth in their current company – complete with new challenges, learning opportunities, and clear advancement – tend to be more engaged and loyal. They come to work not just for a paycheck, but for the promise of progress. It transforms their mindset from “This job is a dead end” to “This job is a journey.” And when work is a journey, people stick around for the ride.
A growth plan also taps into some psychological motivators:
Recognition of Potential: Traditional performance reviews mostly recognize past performance (“You did X well, you need to improve Y”). A growth-focused discussion recognizes potential (“You have the potential to lead a team / become a specialist / take on bigger projects, and here’s how we’ll get you there”). That kind of recognition is hugely motivating. It tells employees that management sees them not just as who they are, but who they could become – and will actively support that evolution.
Fresh Challenges = No Boredom: One common reason employees (especially high achievers) quit is boredom – doing the same thing with no new challenges. A growth plan explicitly builds in new challenges. It’s saying, “We’re going to give you chances to try new things, to stretch.” That keeps the work interesting. A tech startup founder once lamented losing a brilliant engineer simply because the guy felt he wasn’t growing or learning anything new. Don’t let that be you. Keep upping the degree of challenge as folks grow, and they won’t have to look elsewhere for excitement.
Feeling Valued and Heard: Creating a growth plan is typically a collaborative process. Manager and employee sit down and discuss goals. The employee voices their aspirations – maybe they say “I’d like to move into product management eventually” or “I want to become a subject matter expert in machine learning.” Just listening to that and incorporating it into the plan makes the employee feel valued. Contrast that with companies that never ask employees what they want for their career – those employees feel invisible, like their personal goals don’t matter to the company. And if an employee’s dreams can’t come true with you, they’ll find somewhere else where they can. Giving them a roadmap to their dreams within your organization is powerful.
Not to mention, when other potential employers come knocking (and they will, for your top talent), an engaged employee with growth opportunities is much harder to lure away. The recruiter’s pitch of “We can offer you a 10% higher salary” might be met with “Hmm, but here I’m on track for a promotion and they’re sending me to that leadership summit I really want to attend… maybe I’ll stay put.” You’re essentially future-proofing your retention.
It’s also worth noting the external perception: Companies known for developing their people have a reputation that attracts talent and keeps it. One study noted that organizations investing in employee growth and development gain not only retention but also a competitive edge in recruiting – they become talent magnets. People want to work where they’ll grow. So by focusing on growth plans, you’re not just keeping your current team – you’re making it easier to hire great people who hear, “Hey, that company really takes care of your career.”
Now, before this starts sounding like fluffy idealism, let’s get concrete. How exactly do you implement this mythical growth plan, especially tied into the performance review process? Fear not – we’re getting to the practical part.
From Appraisal to Aspiration: Making Growth Plans Part of the Review
Okay, so you’re sold (I hope) on why focusing on growth is key to retention after reviews. But how do you actually do it? How do you integrate career development into the nuts-and-bolts of performance evaluations and the weeks that follow? Let’s break it down into actionable strategies.
1. Shift the tone of performance review meetings. Instead of ending a review meeting with “Congrats, you got a 4% raise, see you next year,” end it with a forward-looking discussion. For example: “Let’s talk about where you’d like to go from here. What goals do you have for the coming year and beyond? Here’s what I have in mind for you, and I’d love your input.” Make it a two-way conversation about the future, not just a report card on the past. In fact, some HR experts recommend conducting detailed career planning sessions during performance reviews – using that time to map out next steps and growth activities. It might extend the meeting by 30 minutes, but it could save you from having to hire a replacement 6 months later.
2. Co-create a written Individual Development Plan (IDP). This is the formal term many use for a growth plan. Right after the review, work with the employee to write down a plan for their development. Include sections like: “Skills to develop,” “Projects to take on,” “Mentorship or coaching,” and “Next career step desired.” Having it written makes it real. Both manager and employee should keep a copy and treat it as a living document. It’s not just HR bureaucracy – it’s a commitment on both sides.
3. Set growth milestones and check-ins. Don’t wait until the next annual review to revisit the plan. Set checkpoints – maybe quarterly meetings specifically about development. These are more casual “stay interviews” or coaching sessions. Ask how they’re progressing on the new skill they wanted to learn, or if they still feel interested in that next role you discussed. This keeps the momentum going and shows the employee you meant it – you weren’t just talk. Research shows employees want more continuous feedback and guidance (over 30% say they crave continuous feedback beyond the annual review. So these check-ins satisfy that desire, keeping them engaged and heard throughout the year, not just at year-end.
4. Align growth opportunities with company needs. A growth plan isn’t just a wish list for the employee – it should also make business sense (that’s how you’ll get leadership buy-in to do this). Look at your company’s objectives and find where an employee’s development goals align. For example, if your company will need more project managers next year and you have an engineer interested in project management, bingo – develop them in that direction. It’s a win-win: the employee grows, and you fill a future skill gap internally (rather than having to hire from outside). It’s always easier to retain (and retrain) someone than to hire fresh. And by visibly promoting internal mobility and advancement, you send a message to others that growth is possible here, reducing that post-review “grass is greener” syndrome.
5. Provide resources for development. A plan is only as good as the support behind it. Set aside some budget for courses, workshops, or certifications. Pair employees with mentors in areas they want to grow. If someone’s growth plan involves leadership skills, consider sponsoring them to attend a leadership training program or assigning them to lead a small team on a pilot project. If it involves technical upskilling, consider reimbursing them for an advanced Excel course or allocating time each week for an online class. Companies that put their money (or time) where their mouth is reap the rewards in loyalty. After all, if your workplace is actively making you better, it’s hard to leave that behind.
6. Be transparent about advancement paths. One subtle but important factor: clarity. If people feel promotions or opportunities are decided in a black box, they get frustrated and disengaged. So as part of growth planning, be clear on what it takes to advance. If your employee, Sarah, wants to become a Senior Analyst, inform her of the usual criteria or skills required for that role and incorporate them into her growth plan. Transparency builds trust. Ambiguity around advancement can breed mistrust and send people looking elsewhere. On the flip side, when expectations for promotion or new roles are clear, Sarah can focus on achieving them with confidence that her efforts will pay off. That confidence binds her closer to your company.
7. Tailor the plan to the individual. No two employees are alike in their ambitions. Some want to climb the classic ladder (junior -> senior -> manager -> director, etc.), while others might want to deepen their expertise without managing people, or move laterally into a new field. Avoid a one-size-fits-all growth plan. Make it personalized. As one HR blog noted, employees crave a clear and personalized career path – not just vague promises. If Joe in accounting wants to become a data scientist, a generic “we’ll help you grow” won’t cut it – he needs a specific plan (maybe taking on an analytics project, learning Python, working closely with the data team, etc.). When employees see that the plan is truly about their goals, it breeds loyalty. They feel understood.
A quick case-in-point example: Element’s approach to growth. (Yes, time for a shameless but relevant plug!) On our Element service page, we emphasize tying performance reviews directly into forward-looking development. It’s about turning that end-of-year feedback session into a springboard for each employee’s next adventure within the company. By making growth planning an integral part of the review process – something we live and breathe at Element – companies can transform the review from a dreaded report card into an inspiring planning session. Our philosophy is simple: every review should end with an employee more excited about their future than before. When that happens, why would they look elsewhere? (For more on how we implement this, check out our Element Services page – we’re all about helping organizations build these structures.)
The Results: Happier Employees, Lower Turnover
Let’s imagine two alternate universes for a moment:
Universe A: Alice, a star performer, has her performance review. She gets a pat on the back and a 4% raise. The whole conversation lasts 30 minutes, mostly her manager reading off a standard evaluation form. Alice leaves that meeting thinking, “Alright, I guess I’m doing fine… but now what? That raise was smaller than I hoped. And I’m not sure where I’m headed here. Maybe I should see what other options are out there…” A month later, Alice is interviewing elsewhere and you’re blindsided by her resignation.
Universe B: Alice’s performance review is a two-way discussion that lasts a full hour. Yes, her manager discusses her past year’s performance (and she gets the same 4% raise), but equal time is spent on Alice’s future. Her manager says, “Alice, you did great on Project X. I could see you leading a team here in a couple of years. Let’s talk about how to get you there – perhaps you could start by mentoring the new hires, and I’ll send you to that Team Leadership workshop this spring. Also, you mentioned you want to learn more about product management – how about we involve you in the next product launch initiative so you gain that experience?” They map out a few concrete steps and write them down as Alice’s growth plan. Alice leaves that meeting thinking, “I’m valued here and they’re investing in me. I’m excited (and a bit challenged) by what’s coming next!” The next time a recruiter calls Alice, she’s less intrigued – she’s got good things cooking right where she is.
The difference in Universe B is palpable, isn’t it? Alice feels engaged and loyal. She has reasons to stay that go beyond a paycheck – she has purpose, growth, and a sense of direction. That’s what a growth plan can do.
And it’s not just theory. Companies that have implemented structured career development initiatives report measurable improvements in retention. While exact numbers vary, consider these compelling indicators:
Workhuman and Gallup have noted that lack of growth is a top driver of attrition, and employees who do see a path forward are far more likely to stick around. We already saw the nearly 75% of young workers who’d leave without growth – flip that around, and providing growth opportunities likely convinces a good chunk of them to stay.
Another survey found that 1 in 3 employees who quit cited a lack of career growth as the primary reason. Imagine if that reason was off the table in your organization because everyone had a growth plan – you could potentially cut resignations by a third just by addressing this factor.
Organizations known for promoting from within (and thus clearly investing in employee development) often have retention rates well above industry average. It turns out people tend to stay when they see their colleagues getting promoted and growing – it signals, “Hey, that could be me next.”
In the end, fostering employee growth is not an altruistic nice-to-have; it’s a strategic must-have for retention. As the saying goes, “People don’t leave jobs, they leave managers (or companies).” If you show people that staying with you is the best way for them to achieve their career dreams, why would they leave? Conversely, if they feel staying means stagnating, all the bonuses and perks in the world might not hold them.
Conclusion: Turning Reviews into Launchpads
Performance reviews and annual raises will always be pivotal moments in the employee lifecycle. They can be moments of triumph or triggers for departure. By infusing those moments with a clear vision of growth and opportunity, you can flip the script. Instead of a post-review exodus, you can cultivate a reinvigorated workforce that’s saying, “Let’s do this, I’m excited for what’s next!”
To recap our journey: Employees are indeed often open to new opportunities after reviews – the data and anecdotes made that clear. But a well-crafted growth plan is like offering them a thrilling new opportunity within your company, quelling that itch to look elsewhere. It keeps them excited and engaged right where they are.
So, next time you’re gearing up for review season, remember that the real work isn’t over when you hand out the raises. In fact, that’s just when the important conversation should begin: “How will we make this next year even more fulfilling for you?” Make it a habit, a policy, a culture – however you do it – to link appraisals with aspirations.
At element, this philosophy is at the heart of what we do. We help organizations transform their review processes into powerful retention tools by centering them on employee growth (see our services page for more on that approach). The results? Employees who leave the meeting room energized about their future at the company, not furtively googling job boards.
In a witty sense, you could say we aim to turn the “Great Resignation” into the “Great Re-engagement.” When your team members see a long-term path for themselves with your organization, they’re not daydreaming about the exit door – they’re too busy planning their next big win with you. And that, ultimately, is the best outcome of any performance review: not just a number on a form or a salary adjustment, but an employee who walks out thinking, “I can’t wait to grow here.”
Now that’s how you keep your people off LinkedIn Job Search the day after reviews.
Here’s to turning retention post-reviews from a problem into an opportunity – one growth plan at a time.
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