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Glossary Terms
Glossary of Human Resources Management and Employee Benefit Terms
Table of contents

Employee Performance Review

Employee performance reviews are formal evaluations where managers assess an employee’s job performance over a specific period. These reviews help identify strengths, address gaps, and align individual goals with organizational objectives. Whether you're preparing for an annual review or writing one for an underperforming employee, real-world examples, phrases, and structured questions can offer helpful guidance and clarity.

What is an employee performance review?

A performance review, also known as a performance appraisal or evaluation, is a systematic process in which managers assess an employee's work performance, provide feedback on strengths and areas for improvement, and set goals for future development.

Performance reviews serve as a cornerstone of performance management systems in organizations. They allow managers and employees to align expectations, improve communication, foster professional development, and ultimately enhance organizational effectiveness.

What is the purpose of employee performance reviews?

The purpose of employee performance reviews are:

  • Evaluating employee performance: Performance reviews allow managers to assess an employee's achievements, strengths, areas for improvement, and overall contribution to the organization.
  • Providing feedback: Constructive feedback during performance reviews helps employees understand their performance relative to expectations and facilitates continuous improvement.
  • Setting expectations and goals: Performance reviews are an opportunity to set clear expectations, establish goals, and align individual objectives with organizational objectives.
  • Identifying training and development needs: By evaluating performance, managers can identify skill gaps and development opportunities for employees and facilitate targeted training and development initiatives.‍
  • Supporting career development: Performance reviews offer a platform for discussing career aspirations, identifying growth opportunities, and creating development plans to support employee advancement.

What types of employee performance reviews exist?

There are several formats depending on the organization's structure, culture, and goals. Each type serves a unique purpose.

  • Self-assessment reviews: employees reflect on their own performance
  • Manager reviews: direct supervisors evaluate employee output
  • 360-degree reviews: includes input from peers, subordinates, and clients
  • Project-based reviews: assesses performance at the end of specific tasks
  • Probationary reviews: occurs after initial hiring phase

What questions should an employee ask in a performance review?

Employees can use reviews as a growth opportunity by asking thoughtful questions that show initiative and openness.

  • “What skills should I focus on developing next?”
  • “How does my work contribute to team goals?”
  • “Where do you see growth opportunities for me?”
  • “What areas could I improve on?”
  • “How can I better align with company objectives?”

Why are employee performance reviews important?

They serve as a critical tool for engagement, productivity, and long-term success. Skipping them can lead to misalignment and disengagement.

  • Provide constructive feedback to guide improvement
  • Encourage goal setting and professional development
  • Reduce turnover by fostering trust and clarity
  • Offer HR data for succession planning and training needs

Who should conduct employee performance reviews?

Managers or team leads are typically responsible, but HR often supports the process. In some cases, 360-degree reviews involve peer and self-evaluation too.

  • Direct supervisors who understand the day-to-day work
  • HR professionals to maintain fairness and structure
  • Cross-functional stakeholders in 360-degree reviews
  • Employees themselves in self-assessments

What is the process of conducting employee performance reviews?

The process includes:

  • Preparation: Gathering relevant data and documentation, such as performance metrics, feedback, and goal progress, and scheduling review meetings in advance.
  • ‍Conducting the review meeting: Setting a positive tone, reviewing performance metrics and feedback, providing constructive feedback, and collaboratively setting goals for the future.
  • ‍Goal setting for the future: Discussing areas for improvement, establishing new goals, and outlining action plans to support employee development.
  • ‍Documenting and following up: Document discussions and agreements and follow up on action plans to ensure accountability and progress.

When should employee performance reviews be conducted?

Reviews should be scheduled regularly to maintain consistent feedback and employee alignment. The frequency depends on company policy and role complexity.

  • Annually (most common for strategic roles)
  • Biannually or quarterly for project-based roles
  • After onboarding or probation periods
  • During promotions or performance concerns

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

Where can you find employee performance review examples?

Examples can be found in HR handbooks, online resources, or internal templates. These help in framing constructive and meaningful reviews.

  • Company performance review templates
  • HR blogs or management toolkits
  • Online platforms offering free employee review samples
  • Professional development courses or training portals

Which performance review phrases can be used effectively?

Using clear, role-specific phrases ensures feedback is actionable and professional. Positive or developmental feedback should be direct and measurable.

  • "Consistently meets or exceeds deadlines"
  • "Demonstrates strong leadership and ownership"
  • "Needs to improve time management and task prioritization"
  • "Struggles with cross-functional collaboration—needs guidance"
  • "Proactively contributes new ideas to team discussions"

What are some tips for writing employee performance reviews?

Well-written reviews should be structured, fair, and aligned with business goals. The tone should be clear yet respectful.

  • Avoid vague language or generalizations
  • Focus on behaviors, not personalities
  • Align feedback with core competencies and KPIs
  • Use SMART goals for future planning
  • Include positive reinforcement with every critique

How to handle a performance review for an underperforming employee?

Approach these reviews with empathy, clarity, and a plan for improvement. Avoid blaming and instead focus on support.

  • Clearly explain the performance issues using examples
  • Explore underlying causes (skills, resources, workload)
  • Set specific and achievable performance goals
  • Offer coaching, mentoring, or training where needed
  • Schedule follow-up check-ins to track progress

How do you write a performance review for an employee?

Writing a performance review requires balance—be objective, specific, and supportive. Structure it around key performance areas and use clear examples.

  • Begin with overall performance summary
  • Use specific, behavior-based performance review phrases
  • Highlight strengths and contributions
  • Address areas for improvement with action points
  • Set clear future goals and expectations
  • Maintain a respectful and encouraging tone

How to answer employee performance review questions?

Responding well to performance questions shows professionalism and self-awareness. Be honest and solution-oriented.

  • Acknowledge both strengths and gaps
  • Back your answers with examples and results
  • Avoid defensiveness—show a willingness to improve
  • Ask for specific feedback and growth opportunities
  • Highlight how you've handled challenges or feedback
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