Performance review

What is a performance review?

A performance review is a structured conversation between an employee and their manager to reflect on achievements, challenges, and growth opportunities over a set period. It’s a collaborative process that evaluates contributions, aligns expectations, and shapes future goals.

A well-run performance review fosters open dialogue, builds trust, and strengthens the working relationship between employee and manager.

How does a performance review work?

Performance reviews typically occur on a regular schedule‌ — ‌annually, biannually, or quarterly‌ — ‌and are designed to be two-way conversations. Key parts often include:

• Employee self-reflection: The employee shares their accomplishments, lessons learned, and areas where support is needed.
  
  
• Manager insights: The people manager offers observations, feedback, and recognition, along with constructive input on development areas.
  
  
• Goal alignment: Both parties assess progress on goals and adjust them based on evolving priorities.
  
  
• Career and development planning: Together, the employee and manager identify future opportunities, training needs, and pathways for growth.
  
  

Some organizations incorporate 360-degree feedback, performance metrics, or peer input for a broader perspective.

Why do companies use performance reviews?

Effective performance reviews benefit both the company and the individual by:

• Encouraging continuous growth and learning.
  
  
• Strengthening the employee-manager relationship through honest, respectful dialogue.
  
  
• Ensuring individual efforts align with team and company goals.
  
  
• Recognizing contributions and identifying opportunities for recognition or growth.
  
  
• Supporting transparent decisions around compensation, promotions, or role changes.
  
  

Examples of performance reviews 

• An employee and manager meet quarterly to exchange feedback and adjust goals.
  
  
• A company uses monthly check-ins to replace formal annual reviews, fostering continuous, trust-based dialogue.
  
  
• A new hire and their manager conduct a 60-day review to ensure expectations are aligned and the employee feels supported.
  
  

Performance review vs. feedback vs. performance management

While performance reviews, feedback, and performance management all support employee development, they serve different functions in a healthy workplace.

• Performance review: A scheduled, structured conversation reflecting on past performance and future direction.
  
  
• Feedback: Frequent, real-time or informal insights exchanged between team members, peers, and managers.
  
  
• Performance management: The overarching, ongoing process of setting goals, giving feedback, tracking progress, and enabling success.
  
  

When combined, these elements help create a continuous culture of performance and improvement.

Things to consider with performance reviews

To make performance reviews meaningful and inclusive:

• Foster a psychologically safe environment for open, two-way conversation.
  
  
• Prepare in advance. Both employee and manager should come prepared with reflections and data.
  
  
• Use clear, equitable criteria that focus on outcomes, not just personality or style.
  
  
• Prioritize action. Reviews should lead to decisions, resources, or support that help the employee move forward.
  
  
• Consider cultural and regional differences in communication and feedback.
  
  

How Remote can help

Running performance reviews across a distributed workforce can be complex, but Remote makes it simple. With Remote Perform, you can complete performance reviews in minutes, not weeks. Discover how Remote Perform helps you run 360 review cycles with less manual effort and more impact.