How Often Should Performance Reviews Be Conducted?

A performance review, put simply, is a formal assessment that aims to gather insight on an employee's performance. It refers to the discussion on achievements, areas of improvements and opens up space for constructive feedback, as well as employee growth.

Moreover, performance reviews are an excellent opportunity to align expectations and objectives, providing support to your workforce, which needles to say makes performance reviews a highly valuable asset to organizational success.

Performance reviews are inevitable and an essential part of cultivating professional growth, as well as align team objectives and drive performance within an organization. But one question always remains. How often should you conduct performance reviews?

To tell you the truth, while there are plenty of universal performance review best practices, there really isn't a one-size-fits-all answer to this. The reality is there are many factors at play that affect how performance reviews need to be handled in an organization. Whether it be company size, or employee needs, this really is a specific matter for everyone. So let's dive in.

How Often Should You Conduct Performance Reviews?

Let's cut to the chase, annual reviews are not as effective on their own anymore. So what is? While every company has specific needs that require them to conduct their own performance reviews in their own pace and frequency, it's generally a good idea to balance performance evaluations with consistent feedback systems throughout the year.

As a rule of thumb, consider implementing quarterly or biannual reviews and make sure to implement constructive feedback into your organizational strategies so that you have a healthy balance between continuous feedback and professional growth. From there, analyze your own needs as an entity and adapt the program where necessary.

How to Choose the Right Performance Review Frequency for Your Organization

As we already mentioned, choosing the right frequency for performance reviews in your organization depends on your needs as an entity. However, we can give you a few things to consider in order to make the decision.

• Company Size: The size of your company can let you know how often you need assessments as well as how affordable and effective it is to conduct them. For example, smaller companies may find monthly or quarterly reviews manageable, yet larger companies may not find that as effective and may prefer streamlining biannual or annual cycles much easier.
• Industry: Your company may be in an industry that is much more fast-paced than others such as tech which means a need to adapt to changing goals and objectives. In that case you may consider more frequent and consistent review processes.
• Team Structure: In terms of how your team is structured, it may be that you require more reviews in a cross-functional team setting or certain roles may require collaboration more often which brings about a need for more feedback. On the other hand, your company may have more independent roles that don't require that many reviews in a year.

All three factors can intertwine and result in specific needs that result in a unique performance review frequency for you. We recommend analyzing these factors and catering to your needs in a way that serves you best, to get the most effective results.

Balance Frequency with Employee Satisfaction and Workload

Last but not least, in deciding review frequencies, we cannot go without mentioning employee satisfaction and workload. It's important to note that frequent reviews, while there may be important benefits like engagement and development enhancement, may also burden managers if not planned and executed well.

To balance this out, consider implementing shorter and more focused check-ins in addition to detailed reviews throughout the year. Utilizing automation tools and streamlining your feedback and review efforts with software like Teamflect is a great idea to ensure all evaluation processes are effective rather than excessive.

That way, you can ensure the frequency of your performance revies promote growth rather than hinder it.

Different schools of thought

Harkening back to the conversation between Jim & Dwight from The Office on which bear is best (Black bears all the way.), there are two schools of thought: As often as possible, supporting quarterly performance reviews or no less than twice a year, and once a year.

While we usually don’t enjoy picking sides, we have to go with the as often as possible crowd on this one. Employee performance review cycles are integral to establishing a feedback culture in your organization.

In that regard, we simply believe that once-a-year performance reviews just won’t do.

The case against conducting employee performance reviews once a year.

When you are conducting performance reviews once a year, you are leaving an incredible period of time for the employee to be accountable and the reviewer to take account of.

This massive period of time increases the margins for error on both ends and turns the one performance review you are conducting into an incredibly long and grueling process for both parties.

Close your eyes and go back to high school for a minute. Think back to all the times you left your entire project to the day before it was due, instead of spreading it into small digestible bits throughout the week.

Do you remember the cold sweats, the panic, and the mixture of “I hate my life” mixed with regret? Do you really want to put your employees through that?

Our usual analogies aside, spreading employee performance reviews too far out from each other leaves a lot of room for recency bias, one of the most common performance review biases out there.

Recent successes or failures will more than likely take the lion’s share of the spotlight as opposed to their counterparts 9 to 10 months back.

What we recommend:

We believe that, depending on the way you operate, quarterly or annual (twice a year) performance reviews are the best way to go. There should also be a well-established, scalable, and fully integrated system for continuous feedback to supplement your performance reviews.

Conducting employee performance reviews can by no means take the place of continuous feedback. Both are required for an organization to thrive.

Annual performance reviews

If you are going with the annual employee performance reviews, then you should designate four key points, dividing the year into two halves. You need two goal-setting periods, one for each half, along with months you’ll be conducting your mid-year and annual performance reviews.

Continuous feedback along with efficient goal-tracking (without diving into the realms of micro-management) are musts in the time between. You can refer to the chart above for a simple overview of the process.

Quarterly employee performance reviews

Conducting quarterly performance reviews gives reviewers four points goal-setting periods and four performance reviews being: Q1 Performance Review, Mid-year Performance Review, Q3 Performance Review, and Annual Performance Review. Another crucial element to include in both options are self appraisals.

How to streamline your performance review process:

Streamlining your employee performance review process is as easy as following these three steps:

• Use integrated performance review software
• Make use of built-in performance review templates
• Automate your employee performance review meetings.

Completing automated performance review cycles within performance review software using employee performance review templates will drastically cut down on the time both reviewers and reviewees spend on performance reviews, streamlining the entire performance review process.

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How to write a performance review?

The true meat and bones of a performance review rest in its purpose. There are some key qualities to include in a performance review regardless of field or purpose.

Effective communication skills
Critical thinking.
Accomplishment-goal correlation
Input received through 360-Degree Feedback
The employee’s impact on overall team chemistry

How to write a self-appraisal for a performance review?

The best self review is one that paints the reviewee in an honest, yet flattering light. It’s contents should include all of the employees relevant accomplishments within the relevant time period, the challenges they have faced, and how they intend to grow through those challenges.