While your performance over the past year may have already locked in your near-term pay and position, how you react to your boss's feedback can help determine your compensation and career path.
"When you get an evaluation, you are getting a score, but then, in a sense there's a second score involved, which is how you handle that feedback," said Douglas Stone, co-author of "Thanks for the Feedback: The Science and Art of Receiving Feedback Well" with Sheila Heen. "Engaging well with feedback is one of the most important skills an employee can have."
First, taking feedback well means getting an opportunity to improve work performance effectively. Second, your acceptance of that feedback improves your likability on the job — it indicates you're a team player and easy to work with. All of that can translate to improving your company standing and compensation, he said.
"For the executives [determining pay], performance reviews are a way of understanding who are the top and bottom talents of the company, who is doing really well and can possibly be promoted and figuring out compensation distribution," said Rajeev Behera, CEO of the performance management platform Reflektive.