What is the main purpose of performance reviews?

The main purpose of performance reviews is to show employees areas of strength and improvement. These reviews serve as a structured opportunity for managers and employees to discuss how well the employee is doing in their role, which includes acknowledging accomplishments and identifying skills or areas that could benefit from development.

Performance reviews are essential for fostering open communication, allowing employees to receive constructive feedback, and encouraging personal and professional growth. By highlighting both strengths and areas needing improvement, reviews can motivate employees, set clear expectations, and guide them in their career development. This aspect helps create a more engaged workforce, where employees feel valued and are informed about how to enhance their contributions to the organization.

While determining salary increases, preparing for audits, and collecting feedback on supervisor performance can be associated outcomes of performance reviews, their primary intent is focused on employee development and growth.