What is an employee performance review?

An employee performance review is a structured assessment of an employee’s performance, contributions and goals over a set period. These performance appraisals identify strengths and areas for improvement, provide constructive feedback, help set future performance objectives and align individual work with company goals.

The performance review process typically involves a self-evaluation, a manager’s assessment and a meeting to discuss progress. It may also include feedback from colleagues. Ideally, a performance review provides clarity on expectations, identifies training needs and establishes new goals using the SMART framework (specific, measurable, achievable, relevant, time-bound).

Managers, supervisors and team or department leaders in both the private and public sectors typically oversee this process, with review frequency varying by organization. Annual reviews are common, though many companies conduct semi-annual or quarterly reviews for timelier feedback. Some organizations use continuous performance management with ongoing check-ins instead of formal annual reviews.

Formal documentation supports performance management and career planning by creating a record of an employee’s performance and progress.

Types of employee performance reviews

Organizations use different review formats depending on their size, structure and goals. Understanding the available options can help managers choose the approach that best suits their team:

Annual review

An annual review evaluates an employee’s overall performance over the course of a full year. This format typically covers goal progress, key achievements, areas for growth and compensation decisions. They can also result in the creation of a performance improvement plan.

Mid-year review

A mid-year review takes place approximately six months into the performance cycle and serves as a checkpoint between annual reviews. It allows managers and employees to assess progress toward annual goals, adjust priorities and address any emerging challenges before the year-end evaluation. Mid-year reviews are particularly useful for keeping employees aligned during periods of organizational change.

Quarterly review

Quarterly reviews occur four times per year and are common in fast-paced or high-growth environments where goals and priorities shift frequently. These shorter, more focused reviews allow managers to provide timely feedback and adjust goals as needed. Because they happen more often, quarterly reviews tend to be less formal and more conversational than annual reviews.

90-day review

A 90-day review, also called a new-hire review, helps managers assess how well an employee has settled into the position, identify challenges and confirm that expectations are clearly understood on both sides. For the employee, it provides an early opportunity to ask questions and receive structured feedback during onboarding.

Comprehensive review

A comprehensive review, or multi-rater feedback, gathers input from multiple sources, including the employee’s manager, peers, direct reports and sometimes external partners such as clients. This format provides a broader understanding of an employee’s performance by capturing perspectives a manager alone may not observe.

Because feedback comes from multiple contributors, comprehensive reviews can identify trends in behaviour and collaboration that single-source reviews may miss.

Self-evaluation

A self-evaluation invites employees to reflect on their performance before the formal review. Employees typically assess their progress toward goals, highlight key contributions and identify areas where they would like to develop further.

When shared with managers ahead of the review meeting, self-evaluations can lead to more productive conversations and help employees feel more engaged in the process. Many organizations incorporate self-evaluations as a standard component of their annual or mid-year review cycle.

Key components of an employee review

While the format of an employee performance review can vary, the content often contains similar information. Supervisors may use questionnaires, checklists or written observations to document an employee’s performance.

Employers typically evaluate employees based on the following metrics:

• Performance metrics: Document-specific, measurable achievements against previously set objectives. Include quantifiable results, such as sales figures, project completions or customer satisfaction scores where applicable.
• Skills assessment: Evaluate both technical competencies specific to the role and soft skills like communication, teamwork and problem solving. Reference specific examples that demonstrate these skills in action.
• Attitude: Evaluate how the employee approaches their work and responds to challenges, feedback and changes.
• Reliability: Review the employee’s record of arriving on time and performing all duties.
• Workplace behaviours: Focus on an employee’s behaviour and whether it contributes to or detracts from overall workplace performance.
• Development plan: Outline areas for growth, recommended training opportunities and resources to support improvement. Include clear action steps and timelines for skill development.
• Future objectives: Set SMART goals for the next review period. Align these objectives with both individual career development and organizational priorities.
• Ability to meet deadlines: Track whether the employee consistently delivers work on time and how they manage competing priorities under pressure.
• Ability to manage challenges: Assess how the employee responds to setbacks, unexpected obstacles or shifting priorities.
• Ability to collaborate with others: Evaluate how effectively the employee works with colleagues, contributes to team efforts and builds productive working relationships.

How to conduct an employee performance review in six steps

A structured approach helps managers conduct performance reviews that are fair, consistent and productive. The following steps outline the review process from preparation through follow-up:

1. Review the role’s core competencies

Start by reviewing the skills and behaviours expected in the employee’s role. Use the job description and established performance standards as a starting point.

Reviewing the employee’s job description is a practical starting point, as it outlines the expectations set at the time of hire. Consider how the role connects to broader department or organizational goals and use those goals as a benchmark for evaluating the employee’s contributions.

2. Gather performance data

Before writing the review, collect objective data to support your assessment. This may include project outcomes, sales figures, customer satisfaction scores, attendance records or feedback from colleagues and partners. Data from multiple sources helps managers develop a more accurate understanding of the employee’s performance over the review period.

3. Set consistent evaluation standards

Establish a clear and consistent method for scoring or rating performance before completing the review. Common approaches include numerical scales, letter grades, percentages or descriptive ratings such as “sometimes,” “often,” or “consistently.”

Whichever method you use, apply it uniformly across all employees to ensure evaluations are fair and comparable. It’s helpful to ensure the rating system is straightforward enough for employees to interpret their results without confusion.

4. Write the review

Using the gathered data and ratings, write a balanced assessment that covers the employee’s achievements, areas for growth and overall contribution to the team. Focus on specific, observable behaviours rather than personal opinions or generalizations.

It’s helpful to include constructive feedback with actionable next steps, such as recommending a relevant training and development course or suggesting a new project that would enhance their skills. Where possible, support your observations with concrete examples to provide the employee with clear, meaningful context and help them feel confident about their progress.

5. Meet with the employee

Schedule a dedicated meeting to discuss the review in person or via video call. Share the completed review with the employee ahead of the meeting so they have time to read and reflect on the feedback. During the meeting, explain the key points, invite the employee to ask questions and create space for an open two-way conversation.

Listening to the employee’s perspective can provide valuable context and help identify any gaps between their self-perception and your assessment.

6. Set goals and schedule follow-up

Conclude the review by agreeing on next steps and scheduling a follow-up to discuss progress. Regular check-ins between formal reviews help employees stay aligned with expectations and allow managers to offer ongoing support and recognition.

Performance review phrases

Maintaining a collection of performance review phrases can help managers provide clear, specific and consistent feedback. The following examples are organized by competency and offer both positive feedback and areas for growth:

Communication

• Positive: Presents information clearly and adjusts their communication in the workplace to suit different audiences.
• Area for growth: Demonstrates strong written communication and is developing confidence when presenting to larger groups.
• Positive: Proactively shares updates with the team, keeping everyone informed of project progress.
• Area for growth: Working on delivering feedback to colleagues in a timely and constructive way.

Teamwork and collaboration

• Positive: Consistently supports colleagues and contributes to a cooperative team environment.
• Area for growth: Participating more actively in group discussions can help strengthen contributions to team projects.
• Positive: Builds positive working relationships across departments and approaches shared challenges collaboratively.
• Area for growth: Developing trust with newer team members can further enhance effectiveness in group settings.

Time management and reliability

• Positive: Consistently meets deadlines and manages competing priorities effectively.
• Area for growth: Developing a more structured approach to task prioritization can help them manage high-volume periods with greater ease.
• Positive: Arrives prepared for meetings and follows through on commitments reliably.
• Area for growth: Breaking larger projects into smaller milestones can support more consistent on-time delivery.

Problem solving and initiative

• Positive: Approaches challenges with a solution-focused mindset and takes initiative without waiting to be directed.
• Area for growth: Building confidence in proposing solutions independently can strengthen their impact on the team.
• Positive: Identifies process inefficiencies and takes steps to address them proactively.
• Area for growth: Expanding their approach to consider a wider range of options before deciding on a course of action can further develop their decision-making skills.

Leadership and coaching

• Positive: Supports the development of team members by sharing knowledge and offering guidance when needed.
• Area for growth: Taking on more formal mentorship responsibilities can help them grow into a broader leadership role.
• Positive: Sets a strong example through consistent professionalism and a positive approach to change.
• Area for growth: Developing a more structured approach to delegating tasks can allow them to lead larger projects more effectively.

Performance and results

• Positive: Consistently meets targets and delivers high-quality work that reflects well on the team.
• Area for growth: Setting more specific personal benchmarks can help them track progress and build on their results each quarter.
• Positive: Has exceeded expectations in several key areas this review period and demonstrated a commitment to continuous improvement.
• Area for growth: Focusing on one or two high-impact priorities at a time can help them maintain the quality of their output as responsibilities grow.

AI and performance reviews

Human resources (HR) departments are increasingly using artificial intelligence (AI) tools to support performance reviews. When used thoughtfully, these tools can help managers save time, reduce bias and create more consistent evaluations across teams.

Common ways employers use AI in performance reviews include the following:

• Data aggregation: AI tools can pull together performance data from multiple sources, such as project management software, sales platforms and customer feedback systems, giving managers a comprehensive understanding of an employee’s contributions.
• Feedback summaries: Some tools analyze written feedback from colleagues and managers to identify patterns and surface themes, helping reviewers prepare for evaluation meetings.
• Goal tracking: AI-powered platforms can monitor progress toward SMART goals throughout the review period, prompting managers and employees to check in as milestones approach.
• Bias detection: Certain tools review written evaluations for language that may reflect unconscious bias, helping organizations maintain fair and consistent assessments.

While AI can support the review process, human judgment remains central to effective evaluations. Managers bring context, relationships and nuanced understanding that automated tools cannot replicate. Consider using AI as a support tool rather than a replacement for direct observation and meaningful conversation with employees.

Employee performance review sample

The format of employee performance reviews can vary. Still, they typically focus on how an employee performs in their role, identify areas for improvement and outline goals for the next evaluation period. The following is an example:

Since assuming her role as assistant manager, Mandy has consistently met and, at times, exceeded expectations. She can work well under pressure, demonstrating adaptability by shifting priorities when clients make last-minute requests. Even under challenging circumstances, she maintains a positive attitude as she collaborates with colleagues to solve problems.

Mandy has strong attention to detail, reviewing her work numerous times before submitting it to ensure it is error-free. While her attention to detail is a strength, it can sometimes affect her time management.

For example, while training her team last week, she spent a significant amount of time focusing on a single topic. She said she wanted the team to understand the new concept thoroughly, but it left her rushing through the rest of the presentation.

Otherwise, Mandy is an effective communicator who excels at motivating her team. She promotes a transparent work environment and employees say she is always empathetic, supportive and patient when listening to concerns or suggestions. I suggest meeting with a supervisor to discuss this review with Mandy and set long-term goals to help build her time management and leadership skills.