What Is a Performance Review?
A performance review is a formal assessment conducted by a manager with the goal of improving job performance and productivity.
Performance reviews help guide employees to align their work with company goals and to be within employer expectations.
A proper performance review benefits the employee, the manager, and the organization. It helps assess the employee’s performance and finds opportunities for development.
The objectives of an effective performance review include:
- Improving the performance review system by setting goals and discussing the expectations for the role
- Providing employees with regular feedback and discussing strengths and potential areas of improvement
- Guiding employees by helping set their goals and improve their skills
- Identifying and implementing any skills and development training needs
- Creating performance improvement plans for employees
- Creating open communication lines to empower employees and to aid in transparency and accountability
Performance reviews require planning, monitoring, and reviewing employees. There are numerous performance review cycles.
- Ad-hoc: A one-time, quick review that’s urgent in manner. This includes both positive and negative feedback.
- Monthly: This type of performance review aims to keep employees accountable for long-term objectives.
- Quarterly: Quarterly performance reviews provide feedback and acknowledge achievements. It’s also to set quarterly goals with direct reports.
- Annual: An annual performance review is a formal assessment that includes goal setting, identifying ways to increase skills and to learn more about strengths and weaknesses.
Performance management tools and software streamline processes, especially for large and remote teams. They help teams establish a performance review template, ratings, and guidelines.
