Performance review
A performance review is a structured evaluation of an employee’s work over a defined period, typically against goals or expectations set in advance.
Performance reviews sit in the talent category with recruiting and training, and they typically come after payroll and core HR are dependable. A review built on unreliable records, inconsistent job titles, or gaps in compensation history produces results nobody trusts. No single schedule is required: annual, semiannual, and quarterly cycles are all common. Some employers pair a formal review with more frequent informal check-ins. The right cadence depends on the role, the industry, and how quickly job expectations change.
What does a review typically document?
A completed review can feed a merit increaseMerit increase. A merit increase is a lasting raise to an employee’s base pay, sized by individual performance and usually set during a review cycle.Click to open the term, a promotion decision, or a formal improvement plan. The record becomes part of the employee’s documented history, which can matter later in a promotion dispute or a termination review. Consistent documentation across employees and review cycles matters as much as the rating itself.
| PART | WHAT IT RECORDS |
|---|---|
| Goals | The goals or expectations set at the start of the review period |
| Assessment | A rating or narrative assessment of results against those goals |
| Observations | The specific strengths and gaps the manager observed |
| Next steps | A development plan, a training assignment, or a compensation recommendation |
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