This article is written to provide you a brief overview of what formal performance evaluations are, and the most common evaluations implemented in businesses today.
Whether it be weekly, monthly, quarterly, mid-year, or annually there are no set rules on how businesses are to conduct their formal performance evaluations. In this part of the series, we are going to touch on the most used Formal Performance Evaluation Cycles, which are Mid-Year Reviews and Annual Reviews.
The frequency and depth of the review processes vary between companies based on their practices, size, and goals of the evaluations; however, the intent behind them generally remains the same. Most appraisal cycles provide leaders the opportunity to have a formal conversation with their employees, usually semi-annually and/or annually around individual/team goals progress, competencies, training & development plans, and to provide feedback on employee performance to date including an initial or final score on performance.
Mid-Year Reviews typically happen in June or halfway through the year, hence the term “Mid-Year.” The main purpose of this check-in is to help open the lines of communication between the employee and their leader to assist with building relationships and a cohesive team, as it can be challenging at times to informally meet.
Leaders will use this dedicated time to collaborate on developing action plans to achieve results, adjust individual/team goals, report on goal progress, improve performance, and ensure their expectations are aligned.
Annual Reviews are the most common business practice in performance reviews, occurring once a year. This is when employees receive their final performance score and evaluation for the year. These scores and evaluations can be used for a variety of reasons like performance management, compensation management, or employment management.
Remember, no employee or leader should be surprised by the final outcome!
Now that you have been introduced to what Formal Performance Evaluations are, please stay tuned for part 3 of this series when we discuss Informal Performance Evaluations.