Why Performance Review Season Is a Mental Health Risk

(and What You Can Do About It)

May is Mental Health Awareness Month globally — and for many organizations, it also kicks off performance review season.

But here’s the quiet truth no one likes to say out loud:

Performance reviews are causing stress — not progress.

They’re often vague, unbalanced, and one-sided. They leave leaders drained, employees anxious, and growth conversations stalled before they start.

For HR leaders, CEOs, and team managers — those responsible for both performance and people — this season can quietly become a high-stakes balancing act. And without support, it’s taking a toll.

The Mental Health Cost

Smart, capable people are often worn down by a process that was never designed to support them:

• High performers begin to question their value — not because they aren’t contributing, but because their efforts are reduced to vague commentary or numerical ratings.

• Employees walk into reviews unsure how safe it is to speak honestly. Many say what they think they're supposed to, not what they truly feel.

• Managers feel the pressure to “fix” performance without the tools, time, or emotional support they need themselves.

The result? Disengagement, silent resentment, and mounting stress — masked as professionalism.

The Hidden Pressure Behind the Process

Performance reviews aren’t just about feedback — for many, they directly impact salaries, bonuses, and future opportunities.

That financial weight adds a deeply personal layer of stress, especially when people feel they have to mask their concerns or can’t openly discuss outcomes with peers.

This often creates a culture of comparison, secrecy, and silent anxiety — all of which chip away at trust and well-being.

These aren’t just logistical challenges — they’re human ones. And they deserve a more human approach.

What People Actually Want

Most employees aren’t resistant to feedback — they’re resistant to environments where feedback feels unsafe, unclear, or disconnected from both growth and well-being.

What they need is:

• Regular check-ins that feel grounded and supportive

• Clear, collaborative paths for development

• Honest, forward-focused feedback

• Meaningful connection with their leaders — not just evaluation

These aren’t perks. They’re the foundation of a healthy performance culture.

What Coaching Does Differently

Coaching isn’t a replacement for accountability — it’s a structure that makes accountability sustainable, and one that supports both growth and well-being.

It shifts performance conversations from pressure-driven evaluations to collaborative growth dialogues by:

• Replacing fear with psychological safety and trust

• Focusing on forward movement rather than past mistakes

• Supporting personal reflection and responsibility

• Aligning individual development with organizational goals

When done well, coaching transforms feedback into a catalyst for change — not a consequence.

The ROI of Doing This Right

When coaching is integrated into the performance process, it not only improves the quality of conversations — it directly impacts outcomes across the organization.

Companies that embed coaching into review season see:

• Enhanced employee engagement, with companies experiencing a 22% increase in profitability as a result of higher engagement levels. (Gallup)

• Increased trust between employees and leadership, as coaching fosters open, forward-looking communication

• Higher retention of top talent — 80% of employees say regular recognition improves their loyalty to their organisation. (Gallup)

These aren’t abstract benefits. They’re strategic levers for improving culture, engagement, and long-term performance.

When performance reviews are done poorly, they create anxiety, emotional fatigue, and disconnection — for employees and leaders alike. That’s where the mental health risk begins.

Coaching changes that. It turns feedback into something constructive, shifting the dynamic from pressure to partnership, and from stress to strategy.

That’s how we can assist you.

Contact us today to talk to us about integrating coaching into performance season.