What is a performance review?

Performance reviews offer managers and team members a chance to step back from daily tasks, reflect on the broader picture, and plan their next steps forward. These conversations reveal hidden challenges, strengthen development goals, and highlight achievements that often go unnoticed.

HR leaders who treat performance reviews as more than a formality lay the groundwork for stronger engagement, better collaboration, and a company culture where people feel seen and supported. 

The impact is clear: McKinsey found that companies that focus on their people’s performance are 4.2 times more likely to outperform their peers, realize an average 30 percent higher revenue growth, and experience attrition five percentage points lower. Prioritizing performance doesn’t just drive outcomes—it drives people forward.

What is a performance review? 

A performance review is an assessment managers use to evaluate professionals’ progress, strengths, weaknesses, and productivity. Performance review frequency varies, though they usually occur every three months to a year. Giving constructive feedback through these routine, formal assessments helps people acknowledge their strengths and where (and how) they can improve.

<< Motivate your people using this performance review checklist >>

Why should HR leaders care about performance reviews? 

While most people don’t exactly look forward to performance reviews, these honest conversations give managers and staff the worthwhile opportunity to discuss how things are going at work. 

Performance reviews can help professionals work more efficiently and perform higher-quality work. Positive reinforcement, clarifying expectations, and providing constructive feedback help improve productivity. 

Gartner found that organizations can see a 24 percent increase in team member performance when performance management has high utility. Plus, an increase in high performers leads to higher overall revenue. 

What to include in a performance review

Performance reviews provide team members and leaders with an opportunity to reflect, realign their goals, and plan for future growth. Here’s what you should include in your reviews.

An overview of the team member’s role

People may lose sight of how their efforts push the company forward when routines take over. A performance review provides the ideal opportunity to revisit core responsibilities, adjust expectations if roles have changed, and reinforce the sense of purpose behind each task. Clear role conversations keep teams aligned and help people move with more focus and confidence.

Example:
“Over the past six months, your role has evolved from content creation to include campaign strategy. Let’s update your job description to reflect that shift and outline where we see your impact growing in the next quarter.”

Team member accomplishments

Celebrating meaningful wins demonstrates to team members that their work holds real significance. Acknowledging accomplishments also shifts the conversation from tasks to impact, helping people connect their efforts to the company’s growth. 

Example:

“You led the new customer onboarding process, which reduced the average setup time by 30 percent. That improvement directly boosted our NPS score, and your collaboration across teams made a real difference.”

Areas for growth or skills to improve 

People respond more openly when feedback is clear, actionable, and grounded in a shared desire for growth. A well-framed conversation about development helps team members move forward with confidence. It should feel supportive and solution-oriented, encouraging continuous learning.

Example:

“Let’s work on building more confidence in stakeholder presentations. You have strong insights—now it’s about delivering them with clarity. A few presentation workshops and regular practice in team meetings can help you build that skill.”

Career plan and goals 

End the review by talking about the future. Collaborate on a clear career development plan that aligns with the team member’s aspirations and the organization’s needs. Whether it’s gaining new skills, taking on more responsibility, or moving into a leadership role, providing a roadmap can help the individual stay motivated and see a long-term future within the company.

Every career conversation sends a simple but powerful message: your growth matters here.

Example:
“You’ve mentioned an interest in people management. Let’s outline a path toward that, starting with mentoring a new team member next quarter. We can also look at training options to build your leadership toolkit.”

<< Use this free goal setting template to help your people grow. >>  

Types of performance reviews

Performance reviews come in different forms, depending on the goals leaders want to achieve and the perspectives they want to gather. 

Manager performance review

A manager’s performance review focuses on structured feedback delivered by the person who oversees the team member’s responsibilities and goals. Managers assess how well individuals meet expectations, contribute to team success, and handle changing priorities. A thoughtful manager review doesn’t just state what went right or wrong. It also guides people toward sharper skills, stronger results, and more confidence.

Peer reviews

Colleagues often witness a different side of a person’s performance than managers do. Peer reviews create a valuable opportunity for team members to give feedback based on collaboration, support, and shared outcomes. Honest peer input strengthens teamwork by revealing how individuals communicate, solve problems, and contribute to group efforts. When used well, peer reviews build trust across teams, reinforce a culture of accountability, and uncover everyday actions that help or hinder success.

Self-performance review

A self-performance review offers a way for professionals to assess their own work quality and work ethic. It’s often an initial part of the performance review process as it helps both sides better understand the person’s strengths, weaknesses, and progress.

Self-evaluation isn’t a time for negative self-talk. It’s a chance for people to examine their performance and recognize where they’re excelling and where they could use an extra push. HR teams and managers use feedback from self-appraisals to make objective decisions about talent management, succession planning, resource allocation, and training needs. 

360 review 

A 360 review is a combination of all the other reviews. It invites input from peers, managers, direct reports, and sometimes even external partners. Instead of relying only on a supervisor’s opinion, team members receive a panoramic view of their strengths, challenges, and working style. Hearing from colleagues who regularly collaborate with them helps people see blind spots they might otherwise miss. 

A strong 360 review creates a fuller, more honest picture of performance and leads toward more balanced, lasting growth.

<< Access these reviews with downloadable performance management templates. >>

Tips for effective employee performance reviews 

Let’s review some performance management best practices for building and maintaining a successful performance review program:

• Set your intention. Begin with a performance review checklist and establish your objectives with performance management templates. These tools help you get organized and get positive results from the performance review process. 
• Run performance reviews frequently. According to Gallup, 56 percent of team members formally review their performance goals with their manager once a year or less. This might not accurately reflect the person’s actual contributions, progress, or evolving responsibilities. Quarterly or bi-annual feedback helps professionals keep a finger on the pulse of their performance so they can maintain high-performance work. 
• Use HR tech. HR tech offers the ultimate tracking system for HR and managers. It stores and displays all performance data to provide a holistic picture of each professional’s performance trajectory.
• Take a growth-minded approach. Instruct managers on how to walk the fine line between praise and critique. Celebrating people’s accomplishments is essential to fuel their motivation. However, pointing out poor performance and how to improve it is equally important. 
• Be an active listener. Encourage managers to listen actively during reviews, not just deliver feedback. Remind them to create space for team members to share concerns, ideas, and goals without interruption. Listening deeply uncovers hidden challenges, opens paths for better support, and turns the review into a true two-way conversation.
• Make the conversation two-way. Encourage a two-way conversation between managers and team members. Keeping the lines of communication open can nurture an honest, respectful, and long-term relationship.  
• Keep professionals in the know. Give team members (especially new hires) ample notice of the performance review date and an overview of what you’ll discuss so they can prepare in advance.
• Mediate. When tension arises between a manager and a team member, it can be tempting to let it slide. As an HR leader, you can help tip the scales in a positive direction so all sides can find common ground and work towards an agreement.  
• Document the review. Guide managers to document each performance review with clear notes on feedback, goals, and agreed-upon actions. A strong written record keeps expectations aligned, prevents misunderstandings, and makes it easier to track progress over time. Well-documented reviews also help HR teams spot trends and build stronger development strategies.
• Analyze and organize the results. To ensure performance reviews are effective, examine the results and investigate why performance levels may be low. Implementing a simple action plan can guide professionals to improve their work practices. Lastly, enter the results into the company’s performance management software to track work performance. 

Examples of performance review questions

While each company and department may have its own set of performance review questions, we’ve included some example questions to help you better understand what drives your people. 

Questions about achievements, strengths, and weaknesses

These questions help people reflect on their accomplishments and focus on growth. 

• What are you most proud of achieving this past quarter/year?
• What skills and strengths have you been able to use to excel in your role?
• What areas do you want to improve in moving forward?
• Have there been any lapses or issues in the past quarter/year? Why did they happen, and what can you do to avoid similar problems in the future?
• What can you do to grow and develop this coming quarter/year?

Questions about goals and development

These questions enable people to set goals for themselves and identify a path toward pursuing these goals.

• What motivates you to work productively?
• Did you meet your goals? If so, which ones?
• What do you need to do to achieve my goals?
• How do your goals align with the organization’s?
• What blockers and challenges have made it more difficult for you to work toward your goals?
• What tools are available to you to help address these blockers and challenges in the future? 
• What specific, measurable, attainable, relevant, and time-based (SMART) goals can you set for the next quarter/year?
• What professional development goals do you have within the organization?
•  Where do you see yourself in the next year, two years, five years? 
• What type of learning and development opportunities are you interested in pursuing?

Questions about interpersonal relationships

These questions focus on feedback, communication, and teamwork to help identify any issues. 

• How helpful did you find the feedback you received this quarter/year?
• To what extent does your manager help you in your role?
• Is there a way your manager could better help you perform your duties? 
• Are you satisfied with the cooperation and collaboration on your team?
• Do you trust your team and/or manager? 
• Have there been any issues in the past quarter/year? Why did they happen, and what can you do to avoid similar problems in the future?

<<Explore more examples in this employee self-evaluation guide.>> 

Example performance review phrases 

Administering a performance review is easier said than done. Familiarizing yourself with phrasing ideas can help you maintain goodwill with professionals, even if you must have a difficult conversation. 

Positive performance interview phrases 

It’s usually helpful to start by addressing the person’s positive accomplishments in ways such as: 

• You’re doing a great job collaborating with team members to finish the project on time
• You’ve consistently shown up and done quality work, which has just helped us sign with a new customer
• Your attention to detail has significantly improved the quality of our deliverables
• The initiative you took with [project or task] has positively impacted the entire team
• You bring great energy to meetings and help keep momentum going
• You’ve done an excellent job mentoring new team members and helping them ramp up quickly
• Your clear communication has made a noticeable difference in our client relationships

Performance interview phrases for giving constructive feedback 

To address the professional about improving in a particular area, use statements that start with “I” rather than “you,” and don’t make assumptions.

• I’ve noticed that your productivity hasn’t been as high as usual. Perhaps you could keep it up by focusing on [task/responsibility].
• I think you’d be able to help out other team members more by taking on [action/responsibility].
• I’ve seen how your insights add value—I’d encourage you to speak up more during team discussions.
• I feel that aligning your priorities with team goals could lead to stronger results.
• I believe you could benefit from more proactive planning to help meet your deadlines consistently.
• I’ve noticed some delays with [project/task]—maybe we can explore ways to streamline your workflow.
• I think your work could have even more impact if you focused on reducing errors in [area].

What not to do during performance reviews

Performance reviews are a chance to guide your people toward growth while encouraging trust and collaboration. Knowing what to avoid ensures the process remains productive, professional, and meaningful for everyone involved.

Comparing team members 

Remind managers that every review should focus on the individual, rather than comparing them to colleagues. Comparisons create resentment, fuel unhealthy competition, and shift attention away from personal growth. Keeping the conversation centered on the person’s own goals, challenges, and achievements builds a stronger, healthier path forward.

Rushing the review

A rushed review sends the message that feedback and the person receiving it do not matter. Encourage managers to allocate dedicated, uninterrupted time for every performance conversation. Taking the time to discuss goals, challenges, and progress shows your commitment to their success and leaves the person feeling valued.

Making it personal

Performance reviews are most effective when they focus on work behaviors and results, not personality traits or emotions. Managers should focus on actions and outcomes rather than labeling people with personal judgments. Keeping the conversation professional protects trust and creates space for real improvement.

Adding biases

Only 22 percent of team members strongly agree that their performance review process is fair and transparent. It’s critical to approach performance reviews with objectivity. Encourage managers to base their evaluations on evidence, rather than opinions or gut feelings. A bias-free review process gives every team member a fair opportunity to grow and build a culture rooted in transparency and respect.

Performance review phrases to avoid

The language used during a performance review is just as important as the feedback itself. Certain phrases can cause confusion, frustration, or even defensiveness, making it harder to foster a productive conversation. 

Here are some phrases to avoid and why:

• Absolute terms like ‘always’ or ‘never.’ Statements such as “You always miss deadlines” or “You never contribute in meetings” can feel overly critical and dismissive. Reference specific incidents or patterns to provide constructive feedback that feels fair and actionable.
• Overly vague comments. Feedback like “You could improve” or “Do better next time” doesn’t give enough guidance. Clearly outline what needs improvement and offer suggestions for how they can make progress. For example, instead of “You need to improve your communication,” try “Let’s work on making your updates to the team more detailed and consistent.”
• False or exaggerated praise. Overly broad compliments like “You’re always perfect” or “You never make mistakes” can feel insincere. Instead, focus on specific examples of their accomplishments to make your praise meaningful and genuine.
• Not focusing on the work. Avoid comments that critique personality traits rather than work behaviors. For instance, rather than saying, “You’re too negative,” reframe it as, “I’d like to see more positivity when approaching challenges to motivate the team.”
• Harsh or unbalanced criticism. Phrases like “This was unacceptable” or “You failed here” can discourage growth. Instead, balance constructive feedback with encouragement. Acknowledge the effort they’ve put in and highlight areas where improvement is both possible and realistic.

How often should you conduct performance reviews? 

The best schedule for performance reviews depends on the organization’s goals, team needs, and the pace of individual development. While annual reviews once served as the default, many companies now build in quarterly or monthly check-ins to keep feedback fresh and actionable. 

Monthly reviews are effective for new hires or project-driven teams that require regular course corrections. Quarterly reviews create a balanced rhythm, offering enough time for real growth while maintaining consistent communication. Annual reviews still provide value for roles tied to long-term goals, allowing space to assess bigger achievements and career development. 

Whichever schedule fits best, frequent and thoughtful reviews keep team members aligned with company objectives, motivated to improve, and connected to their growth paths. 

Keep in mind that while performance reviews are essential, they can’t replace the value of regular, in-the-moment feedback. Frequent conversations about progress, wins, and opportunities help team members feel supported, stay on track, and continuously grow. Gallup found that people are 3.6 times more likely to be strongly motivated to do outstanding work when their manager provides daily, vs. annual, feedback. Plus, 80 percent of people who receive frequent, meaningful feedback report being fully engaged at work.

Include performance reviews in your  modern HR strategy 

Performance reviews enable managers and team members to have constructive conversations so they can set goals and find ways to elevate work performance. A company culture based on honest and nurturing manager-employee relationships is sure to be one that people want to be part of.

Regular check-ins with your people are essential for effective performance management. Getting together to have an honest, goal-oriented discussion keeps people progressing in the right direction, connected with managers, and actively engaged with their work.  

<< Improve your review process with performance management templates. >>