What is a performance review?

A performance review is a formal evaluation in which a manager evaluates an employee's work performance. Also called a performance appraisal or  employee evaluation  , it can be structured in a variety of ways to effectively identify strengths and weaknesses, provide constructive feedback, and set goals for the future.

What are common goals for performance reviews?

Performance reviews should help employees understand:

• what are they doing well
• How they can improve
• How their work aligns with the larger company goals
• What is expected of them next?

Most managers use these evaluations to recognize high-performing employees or  fix performance problems before they become unmanageable. They also communicate expectations, encourage growth and progress, and   promote  employee engagement .

Do most companies still conduct annual performance reviews?

Many companies maintain an annual performance review cadence, but it's  not required  . In fact,  less than half of  companies offer annual or semiannual reviews, and  7%  of companies don't offer them at all. However, other companies embrace frequent feedback and hold quarterly, monthly, or weekly review sessions.

While performance reviews can seem nerve-wracking, they don't have to be. Employees often value them so they can better understand what they can do to move forward in their careers.

performance review examples

Some organizations have eliminated formal performance reviews and instead prefer more casual manager check-ins and one-on-one meetings. This helps take into account factors that may be missed in annual employee reviews.

For example, by checking in at least every two weeks, managers and employees can have ongoing  two-way dialogue to discuss meaningful goals and action plans  . Small steps can help make progress more manageable and ensure that employee goals align with constantly changing company priorities.

What is a self-assessment performance review?

Self-assessment performance reviews invite employees to reflect on their work, skills, and areas for improvement. These develop more balanced evaluations and create opportunities for discussion. If major discrepancies arise between manager and employee evaluations, human resources can provide additional support and mediation.

Performance Review Tips for Employees

If you're preparing for a self-assessment, try using the following tips:

• Prepare notes.  Document the topics you want to discuss, such as your strengths, weaknesses, and long-term goals.
• Consider examples.  Be prepared to share concrete examples of how you accomplished the goals you set during the last review and how you improved overall.
• Evaluate yourself.  Practice reviewing your performance. This exercise can help you identify new strengths, weaknesses, accomplishments, and objectives.
• Come prepared with questions.  Performance reviews should be a safe environment to ask questions. Preparing for these ahead of time helps ensure that you will get answers to the challenges or issues that are on your mind.

To make performance appraisals successful, managers and employees must be willing to discuss and deliberate together. However, managers have the power to largely influence their employees' careers - so it's   their job to facilitate a civil and productive conversation .

Here are seven topics that managers  should avoid to keep things constructive  :

1. Criticism without examples

2. Comparison

3. False praise

4. Speculation

Some key points bear repeating, but if you find you're giving the same advice and praise in every performance appraisal, try changing things up. Maybe the message isn't getting through the way you're sharing it or it needs further discussion.

If both managers and employees take notes on what is discussed in performance reviews, you can move forward based on the advice and goals you gain from each meeting rather than repeating the same thing over and over again.

6. “Always” and “never”

There is an exception to every rule. Ultimatums and general statements are rarely accurate and can make people feel defensive.

Let’s say an employee who usually meets deadlines was late submitting their last two assignments. Due to recency bias it may be tempting to say, “You never submit your work on time.” Instead, invite the employee to honestly explain why they submitted late and problem-solve together for future tasks. For example, perhaps the deadlines did not give them enough time to complete the full scope of those projects.

7. “I wish I had more time”

Performance reviews should be a priority for managers and employees. They help ensure that everyone's personal goals align with company objectives and provide valuable information on how employees and managers can improve. When evaluations are made a priority, the entire company can benefit.

Even if your company only has formal employee reviews once a year, let them know they can discuss their evolving goals with you during weekly informal meetings and other occasions. Talking about this will show your team that you value their growth and development.