Performance Review
A performance review is a periodic, structured assessment in which a manager and an employee look back at results, behaviours and progress over a period, and agree on feedback, goals and development priorities.
Definition
A performance review, or annual review, is a formal moment to take stock. The manager and the employee discuss what was achieved against the goals, how the work was done, what the person did well, where they can progress, and what the goals of the next period will be. In some organisations it is linked to pay or promotion decisions, while in others it is kept separate to leave room for honest development discussion.
The review is usually prepared in advance: the employee writes a self-assessment, the manager gathers examples and data, and sometimes colleagues give input. The conversation itself should be a dialogue, not a reading of a form, and it ends with written conclusions and goals. Many organisations add short check-ins during the year so that nothing in the review comes as a surprise.
Performance reviews matter because they give people clarity about how they are doing and where they are heading. The common pitfalls are recency bias, where only the last two months count, vague comments without examples, ratings that depend more on the manager than on the person, and a conversation that happens once a year with no follow-up. Training managers and using the same criteria across teams makes reviews fairer.
Key points
- It reviews results and behaviours over a period and sets goals for the next one.
- Prepare with a self-assessment and concrete examples, not impressions.
- Treat it as a dialogue and end with written goals and development actions.
- Regular check-ins during the year prevent surprises and reduce recency bias.
- Use consistent criteria and train managers to limit bias between teams.
Example
A sales team lead prepares the annual review of a team member. She collects three concrete examples of work done during the year, asks him to complete a short self-assessment, and starts the meeting by asking how he thinks the year went. They agree on two development goals and plan a mid-year check-in to see progress.
Frequently asked questions
How often should performance reviews take place?
Once or twice a year is the usual formal rhythm, supplemented by shorter check-ins every month or quarter. More frequent informal feedback helps more than a heavier annual process.
What is the difference between a performance review and a one-on-one meeting?
A performance review is a formal periodic assessment of a whole period, with conclusions and goals. A one-on-one is a short, regular conversation focused on current work, blockers and support. They complement each other: one-on-ones make the review richer.
How do you prepare for a performance review?
Gather concrete examples, review the goals set at the start of the period, ask the employee to do a self-assessment and think about development needs. A ready-to-use annual performance review question template can help you structure the conversation.
Related terms
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