Performance review: how to evaluate employees' work

A performance review is a formal process of evaluating an employee's work within an organisation. Its aim is to assess current results, provide feedback, define goals for the future and plan professional development.

The main purposes of a performance review

1. Assessing performance. Analysing the employee's work against set criteria and indicators.
2. Providing feedback. Discussing strengths and areas for improvement.
3. Setting goals. Defining goals and tasks for the next period.
4. Planning development. Identifying training and development needs to improve skills and competencies.
5. Reward decisions. A basis for decisions on pay rises, bonuses and promotion.

What matters

• Objectivity and fairness: evaluation based on objective criteria and evidence.
• Open communication: an environment where employees feel comfortable voicing their thoughts and questions.
• A focus on development: emphasise growth, not just assessment.
• Consistency: the same standards and processes for all employees.
• Continuous feedback: regularly throughout the year, not only in the annual review.

Common problems and solutions

• Subjective ratings. Use several sources of feedback and objective data.
• Negative reactions. Approach difficult feedback with empathy and offer support for improvement.
• Lack of clarity. Explain expectations and the review process clearly from the start.

A well-run performance review can significantly raise employee performance and engagement, and the overall success of the organisation.