People have been complaining about the annual performance review and merit-pay-increase matrix for years. Research shows the once-a-year appraisal can agitate employees, plus it’s rarely seen as an effective way of driving business value. Since your organization still needs to measure performance and allocate compensation budgets, you can’t simply toss out the old approach. But you can make it better — and the time is now. Where do you begin? Let’s start by taking a closer look at the problems.