An employee review, sometimes also called a performance review or performance appraisal, is a formal, structured evaluation of an employee’s job performance and overall contribution to an organization over a specific period, usually either three (quarterly), six (mid-year) or twelve months (annual).
During the review, a manager (and sometimes peers, direct reports, or the employee themselves) assesses the employee’s accomplishments, strengths, and areas for development. It is also an opportunity to gain insights into related and contributing factors, such as levels of employee engagement, goals management, and employee accountability.
The purpose of employee reviews in the performance cycle
An employee review is a critical component of the broader performance management process. It serves as a two-way dialogue to provide constructive feedback, clarify expectations, and document performance levels against established goals. While employee reviews may sometimes be used purely to assess performance, the trend today leans toward using them as a form of dialogue to determine how better to direct employees toward better performance. They are more and more used as an employee development tool rather than a means by which to reward or critique performance. Effective employee reviews are greatly facilitated using professional employee review software.