Performance reviews: the ultimate guide for managers and HRs

Traditional performance reviews often feel like a bureaucratic checkbox. And for good reason: according to Gallup, only 14% of employees strongly agree that performance reviews help them grow.

Companies that invest in regular, personalized, and strategically aligned feedback get much more in return — higher retention, motivation, and engagement. In those organizations, performance reviews are not dreaded meetings on the calendar — they’re part of the growth culture.

In this guide, we’ll explore how to build a performance review process that actually works.

A performance review is a structured conversation between a manager and an employee, where they reflect on the past period, exchange feedback and set direction and goals for the future.

But modern reviews are more than just "evaluations" — they are:

• A tool for aligning with OKRs and KPIs
• A moment to strengthen soft skills
• A way to understand employee motivation

When done well — and paired with metrics and personalization — performance reviews become essential to talent development.

The core goals of performance reviews are:

• Growth and development: identifying strengths and improvement areas
• Goal alignment: linking personal contributions to team and company goals
• Recognition: celebrating wins and progress
• Transparency: creating space for honest discussion
• HR analytics: forming a data base for L&D, retention, and career planning

According to Leapsome, companies with regular, high-quality reviews are 21% more likely to achieve their business goals on time.

Annual reviews no longer cut it. A more flexible system:

• Quarterly reviews: brief and focused — perfect for OKR-driven teams
• Biannual reviews: deeper analysis of soft/hard skills
• Monthly check-ins: help maintain momentum and motivation

Tip: Combine quarterly reviews with continuous feedback tools (like 1:1s, shout-outs or real-time KPI comments).

Choose or combine the following formats based on your culture and team needs:

• Manager-led reviews — classic 1:1 conversations
• Self-assessments — powerful tool for self-awareness and ownership
• 360-degree feedback — insights from peers, reports, and supervisors
• Project-based reviews — evaluation based on outcomes of key projects
• Pulse reviews — quick, regular feedback snapshots

A good performance review isn’t a one-person act — it’s a collaborative process:

• The employee — not just the subject, but an active participant through self-review
• The manager — facilitator, coach and feedback partner
• HR — process owner, ensuring fairness and consistency
• Colleagues — in 360° formats, add valuable context and perspective

1. Prepare

• Gather KPIs, OKRs, peer feedback
• Review past goals
• Ask the employee for a self-assessment

2. Conduct the meeting

• Start with achievements
• Discuss improvement areas using real examples
• Encourage open discussion: "What matters to you? What’s blocking you?"

3. Close the loop

• Set 2–3 new goals or development areas
• Log all outcomes in your performance system
• Schedule a follow-up check-in

📌 For goal-setting, see “How to use OKRs and KPIs together”

AI isn’t here to replace managers — but it makes their job easier:

• Trend analysis: who’s improving, who’s stuck?
• Bias detection: spotting language or patterns that need attention
• Automation: collecting data, sending reminders, summarizing feedback
• Personalization: recommending learning paths or identifying workload issues

A great performance review isn’t a task — it’s a conversation that builds trust, boosts motivation, and links personal growth to company success.

Don’t be afraid to adapt your format, ask better questions, or experiment with feedback tools. Just remember: performance reviews should help people move forward — not just get judged.