A performance review, also known as a performance appraisal or employee evaluation, is a formal assessment of an employee’s work.
It’s a structured conversation between an employee and their manager to review past performance, discuss strengths and weaknesses, and set goals for the future.
The review can be used to inform decisions about compensation, promotions, and training opportunities.
Types of Performance Reviews
There isn’t a single way to conduct a performance review. The format often depends on the company’s culture and what it hopes to achieve.
- Manager-Led Reviews: This is the most traditional form, where a manager assesses an employee’s performance based on their observations and records.
- Self-Assessments: The employee writes a review of their own performance before the formal meeting. This encourages self-reflection and gives the employee a voice in the process.
- Peer Reviews: Colleagues on the same level provide feedback on an employee’s performance. This can offer unique insights into teamwork and collaboration.
- 360-Degree Feedback: This is the most comprehensive type. It includes feedback from multiple sources, such as the employee’s manager, peers, direct reports, and sometimes even clients or customers.
Preparing for a Performance Review
Both the employee and the manager should prepare for a performance review to make it a productive and meaningful conversation.
- For the Employee:
- Review your job description and goals. Remind yourself of your key responsibilities and the objectives you set during your last review.
- Document your accomplishments. Create a list of your achievements throughout the review period. Use specific examples and data (e.g., “Increased sales by 15%,” “Led a project that saved the team 10 hours a week”).
- Identify areas for growth. Be honest about challenges you faced and where you’d like to improve. Think about what skills you want to develop.
- Prepare questions. Think about what you want to get out of the meeting. Ask about career progression, new opportunities, or how you can better align your work with the company’s goals.
- For the Manager:
- Gather data and examples. Collect specific instances of the employee’s performance, both positive and negative.
- Be objective. Base your feedback on measurable results and documented behaviors rather than personal feelings.
- Prepare an agenda. Outline the key topics to discuss, including accomplishments, areas for improvement, and future goals.
- Focus on the future. While it’s important to discuss the past, the review should primarily be a forward-looking conversation about growth and development.
Best Practices for a Successful Review
To make the review process as effective as possible, organizations are moving away from the traditional, one-size-fits-all annual review. Modern best practices include:
- Regular Check-ins: Instead of a single annual review, many companies are adopting a continuous feedback model with more frequent, informal check-ins (e.g., quarterly or monthly). This allows for real-time coaching and addresses issues before they become major problems.
- Two-Way Conversation: The review should be a dialogue, not a lecture. Managers should listen actively to the employee’s perspective and create a safe space for open communication.
- Actionable Feedback: Feedback, especially constructive criticism, should be specific and actionable. Instead of saying, “Your communication skills need work,” a manager might say, “Please provide weekly updates on project X to ensure the team is aligned.”
- Goal Setting: End the review with a clear plan for the future. Establish S.M.A.R.T. goals (Specific, Measurable, Achievable, Relevant, Time-bound) to give the employee a clear roadmap for the next review period.