Employee Performance Review

Meaning & Definition

Employee Performance Review is a systematic process whereby the manager of the employee is required to assess the performance of the employee for a particular period of time. Employee performance review includes the evaluation of goals, KPIs, and performance achievements. The process of performance review is carried out on a quarterly, semi-annual, or annual basis.

Important Aspects of Employee Performance Review

• Offers feedback for performance improvement.
• Aligns the goals of employees with the goals of the organization.
• Helps in promotions, salary increments, and bonuses.
• Supports in identifying training and development requirements.
• Enhances transparency and accountability in performance management.

Legal & Regulatory Considerations

There is no specific statutory compliance that is directly related to this term.

However, performance reviews that are documented are significant in the following areas:

• Performance-related salary adjustments
• Promotions and succession planning
• Defending against claims in disciplinary or termination actions

Clear and unbiased review processes reduce workplace issues and legal risks.