How do annual performance reviews benefit employees and employers?

Performance reviews offer employees valuable feedback and recognition. They can highlight areas where an employee excels and identify opportunities for improvement. Employers benefit from structured meetings that involve clear communication and record-keeping, enabling them to make informed decisions about the employee's path.

What should be included in an annual performance review?

Reviews typically cover achievements, challenges, progress toward goals, future objectives, as well as areas that could benefit from training and development. They may also include manager feedback, self-assessments, and discussions about growth opportunities or support needs.

How often should an annual performance review be conducted?

It is common practice for businesses to conduct performance reviews annually. Some companies also conduct midyear check-ins or informal feedback sessions to keep communication ongoing and goals on track.

What is the difference between a performance review and a performance appraisal?

A performance review is a broader conversation about performance, goals, and development. A performance appraisal typically refers to the formal rating or scoring process used for HR analytics and to make decisions on matters such as compensation or promotion.