A yearly performance review is a formal evaluation of an employee’s performance over a 12-month period. It typically includes feedback, goal assessment, and compensation discussions.
It’s the traditional approach to performance management.
Annual reviews often come too late to address issues or support improvement. They focus on past performance instead of future growth.
Modern companies complement or replace them with continuous feedback systems.
Performance evaluation against goals.
Manager and employee feedback.
Development discussions.
Compensation or promotion decisions.
When combined with ongoing feedback, yearly reviews provide structure and documentation. On their own, they are often insufficient.
A company uses yearly reviews as a summary of ongoing monthly check-ins rather than the only performance conversation.