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Review – what it is and how employee performance is assessed

Review – what it is and how employee performance is assessed
Оцінка роботи працівників: як проходить процес перегляду ефективності

Performance evaluation is very important for any team. A balanced evaluation system not only determines the level of task completion but also motivates employees towards professional development, enhances team interaction, and contributes to achieving the company's strategic goals. 

Therefore, understanding what a review is is crucial. It is a formal procedure for assessing an employee's performance that helps management and HR to gather structured information about work results, strengths, and weaknesses of the personnel.

A review becomes not just a control mechanism but also a development tool that allows employees to receive constructive feedback and identify their own professional growth areas.

What is a review and what goals does it serve

A review is a systematic evaluation of an employee's work over a defined period, usually a quarter or a year, with the aim of analyzing achieved results, competencies, and behavioral indicators. The main goals of conducting a review are:

  • to determine the compliance of the performed work with the company's expectations;

  • to identify strengths and areas for development of the employee;

  • to support motivation through feedback;

  • to plan career development and professional training;

  • to justify decisions regarding bonuses, promotions, or transfers to other positions.

A review helps create a transparent personnel management system and fosters trust between the employee and management, as the employee receives an objective evaluation of their work, while the manager receives structured information for decision-making.

How a review differs from daily performance evaluations

what is a review

Daily performance evaluations are usually informal and include current task monitoring, observing the effectiveness of duty performance, and short comments from the manager regarding mistakes or accomplishments. A review differs from such daily monitoring in that:

  • it has a formalized nature and is usually conducted according to predetermined criteria;

  • it evaluates work results over a certain period, rather than individual actions;

  • it includes structured feedback with specific recommendations;

  • it can be used for planning career development and motivation;

  • it involves the participation of the HR department and management in a standardized process.

Thus, a review does not replace daily control but complements it, providing a systematic approach to evaluating the results and competencies of the employee.

Main types of reviews

main types of review

There are several main types of reviews that companies apply depending on the evaluation goals:

  1. Performance Review – focuses on the achievements of the employee, fulfillment of key performance indicators (KPI), and project results.

  2. Competency Review – assesses skills, professional competencies, and behavioral characteristics necessary for working in a specific position.

  3. 360-degree Review – involves feedback gathering from managers, colleagues, and subordinates, providing a comprehensive picture of an employee's behavior and interaction in a team.

  4. Development Review – aimed at determining potential for career growth, necessary training programs, and development of professional skills.

  5. Project or periodic review – evaluating an employee's work within a specific project or over a defined time period (e.g., a quarter).

Each type of review has its advantages and allows the company to adopt a flexible approach to reviewing personnel depending on specific tasks and needs.

How reviews are conducted in the company

how to conduct a review in a company

The process of conducting a review consists of several stages:

  1. Preparation. Evaluation criteria, performance indicators, and key competencies by which the employee will be evaluated are determined.

  2. Information collection. The manager analyzes achievements, results of tasks performed, feedback from colleagues and subordinates (in case of a 360-degree approach).

  3. Preliminary evaluation. An analytical card of the employee is formed with an evaluation based on defined criteria.

  4. Conducting the meeting. During the personal meeting, the manager discusses the evaluation results with the employee, praises achievements, points out areas for development, and discusses future plans.

  5. Documenting results. The results of the review are documented, goals for the next period are defined, as well as possible training, promotion, or adjustment plans.

  6. Further monitoring. The implementation of the development plan and achievement of new KPIs is tracked throughout the subsequent period.

It is important for the review to be conducted constructively, without evaluating the employee's personality, focusing on outcomes and potential for development.

The impact of regular reviews on productivity and employee motivation

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