Many companies are moving away from formal performance reviews and replacing them with application-based feedback technologies that provide real-time employee evaluation. In this study, Michael Rivera, Subodha Kumar and Tony Petrucci investigate the nature and impact of real-time employee feedback on supervisors and their subordinates.

The researchers found that positive real-time feedback has a strong effect on an employee’s willingness to continuously perform well. Additionally, employees with initially low feedback experience significant score increases over time. Lastly, the researchers discovered that supervisors rate subordinates higher if the subordinates previously rated the supervisor high and vice-versa. However, this tit- for-tat strategy does not hold for employees on the same level.