Performance Reviews

By Entrepreneur Staff

Pencil

Performance Reviews Definition:

An analysis of an employee's work habits undertaken at a fixed point in time to determine the degree to which stated objectives and expectations have been reached

Everybody who works for you needs to know where they stand and how they are doing compared to your expectations of them. Many companies have formal review systems to let employees know how their performances stack up. Reviews may be conducted as often as every three months, but annual reviews are most popular.

Each review should go over the goals that were set when the employee started the job or during the last performance evaluation. Then the review should examine how well the employee has done toward reaching these goals. The employee should be asked to rate his or her performance, in addition to relying on objective measurements such as sales figures. You and the employee should then discuss the desirability of trying to reach goals that haven't yet been achieved, and you should both set goals for the future.

But reviews and evaluations are--often justifiably--viewed as little more than formalities that accomplish little or nothing in the way of true feedback. To make formal evaluations go more smoothly, and to eliminate any surprises on the employee's part, give feedback at the time something occurs to warrant it.

More from Employees

Absenteeism

An employee's deliberate or habitual absence from work

See full definition

Consultants

A person engaged to provide professional advice or services for a fee, but not as an employee of the business that engages him or her

See full definition

Cross Training

Teaching your employees the skills and responsibilities of another position at your company to increase their effectiveness

See full definition

Hiring

The practice of finding, evaluating, and establishing a working relationship with future employees, interns, contractors or consultants

See full definition

Latest Articles

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.