People · business glossary
What is Performance review?
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
definition
A structured, periodic conversation assessing how an employee has performed against expectations.
Performance review explained
A performance review is a regular assessment of an employee's work against goals, with feedback and plans for development.
example
A quarterly conversation reviewing KPIs, strengths, one area to improve and support needed.
why it matters
It aligns individual work with business goals and supports growth.
common mistake
Holding reviews only once a year, so feedback comes too late to help.
Frequently asked questions
What is Performance review?
A structured, periodic conversation assessing how an employee has performed against expectations. A performance review is a regular assessment of an employee's work against goals, with feedback and plans for development.
Why does Performance review matter?
It aligns individual work with business goals and supports growth.
What is a common mistake with Performance review?
Holding reviews only once a year, so feedback comes too late to help.
Related terms
KPI (key performance indicator)
A specific, tracked number used to judge whether a role, team, or business is performing as expected.
KRA (key result area)
The specific responsibilities and activities a role is expected to own, which together produce its KPIs.
Culture
The accumulated, often unwritten patterns of behaviour and belief that shape how people actually act inside a business.