performancereviews

Performance reviews, also called performance appraisals, are formal assessments of an employee's job performance over a defined period. They are used to document achievements, identify areas for development, and inform decisions on compensation, promotions, and succession. They typically occur annually or semi-annually, though many organizations are shifting toward more frequent feedback cycles. The process often relies on defined criteria, such as job responsibilities, competencies, and measurable objectives.

Common approaches include traditional manager-led reviews with a rating and written narrative, goal-setting frameworks such as SMART goals or OKRs, and multi-source feedback programs known as 360-degree reviews. Some organizations employ continuous performance management, emphasizing frequent check-ins and real-time feedback, while others use calibration meetings to align ratings across teams.

Process steps: planning and goal setting at the start of the cycle; employee self-assessment; manager assessment with evidence; a feedback discussion; development planning with concrete actions and timelines; and formal documentation. In many systems, ratings are tied to compensation or advancement, though best practice separates development from pay decisions.

Benefits include greater clarity about expectations, improved accountability, and targeted development. Criticisms include potential biases, anxiety around evaluations, emphasis on ratings over growth, time consumption, and potential loss of trust if feedback is not timely or constructive. Privacy and legal considerations also apply to documented feedback.

Best practices include aligning reviews with business goals, enabling ongoing feedback, using specific examples, focusing on behaviors and outcomes, involving the employee in the process, training managers in constructive dialogue, and reducing bias through structured rubrics and diverse inputs. Organizations increasingly favor lightweight or continuous feedback models to complement or replace annual cycles.