What is a Performance Review?
A performance review, also called a performance appraisal or performance evaluation, is a formal assessment in which managers evaluate an employee’s work performance, identify strengths and weaknesses, offer feedback, and set goals for future performance. In the past, many organizations held performance reviews annually for the entire workforce; however, more and more companies are moving toward a frequent feedback performance management system in which managers conduct reviews quarterly, monthly, or even weekly. In fact, some organizations are doing away with formal performance reviews altogether in favor of more casual manager check-ins and one-on-ones.
When done right, performance reviews can help employees understand what they’re doing well, how they can improve, how their work aligns with larger company goals, and what is expected of them in their given role. On the other end, managers who use performance reviews effectively can more easily recognize high performing employees, correct issues before they become insurmountable, communicate expectations, encourage growth and development, and foster employee engagement.
Related: Performance Management