What is a performance review?
Quick answer
A performance review is a scheduled conversation and written record, often yearly or twice a year, where a manager and employee look at how the person is doing against the expectations of the role. It covers results, strengths, areas to improve and goals for the next period.
Last updated
Updated · By Robert Breen
Why it matters for a small business
A good review means nothing in it is a surprise. It pulls together feedback that should already have come up in regular check-ins, records it fairly and sets clear goals. Employees learn where they stand, and managers have a record that explains raises, promotions or extra support.
Reviews can also create risk when they are vague or inconsistent. Comments about personality, age, family or health have no place in them, and ratings should tie to the job's real expectations. Rules around documentation and discipline vary by state, so have HR or an employment attorney look at your process, especially before a review leads to a formal warning.
In a real lesson: Turn an Interview Debrief into a Scorecard and a Candidate Follow-Up (Recruiting & HR)
The Interview Debrief to Scorecard lesson is about hiring, not reviews, but its method carries over directly. At Willow Bend Physical Therapy, a made-up clinic, Hannah from HR asks ChatGPT to score a candidate on each must-have as Strong, Partial or Not discussed, with a short quote as evidence.
The same request says "Don't guess at age, family, health, religion or anything else that isn't job-related." When a panelist mentions the candidate's kids, Hannah says to leave it out, and the scorecard does. A review written the same way rates each expectation with an example and leaves out anything unrelated to the work.
The Summarize a Meeting Transcript lesson adds the habit of writing "Not stated" instead of guessing. Neither lesson writes a review. If a review leads to a formal plan, the performance improvement plan prompt can structure a draft for HR to check.
Try this lesson free or read the step-by-step guide.
Common confusions
Performance review vs one-on-one
A one-on-one meeting is a frequent, informal check-in. A review is a scheduled, written summary of a longer period. Good one-on-ones make reviews easier and less surprising.
Performance review vs performance improvement plan
A review covers everyone on a regular schedule. A performance improvement plan is a specific written plan for someone who is not meeting expectations, with goals and dates.
Tips
- Rate against the expectations in the job description, not against other employees' personalities.
- Keep a running note of examples during the year so the review does not rely on memory.
- If AI drafts a review, give it only work-related notes and edit the result in your own words.
Related terms
More Business terms
Where you use it: free lessons
- Turn an Interview Debrief into a Scorecard and a Candidate Follow-Up (Recruiting & HR) (ChatGPT, 9 min)
- Summarize a Meeting Transcript with ChatGPT (ChatGPT, 9 min)
Prompt templates that use it
Frequently asked questions
- How often should performance reviews happen?
- Many companies hold them once or twice a year, with regular one-on-ones in between. What matters most is that feedback is ongoing, so the review only summarizes it.
- Is it safe to use ChatGPT for performance reviews?
- Use a business account that does not train on your data, leave out personal details and keep the judgment with the manager. Follow your company's policy, and have HR review anything tied to pay or discipline.