In the recent times, more and more organizations are moving towards Quarterly performance reviews and discarding their annual appraisal systems. This article explains the entire process and provides the ‘Quarterly performance review template’.
Organizations have realized that Quarterly performance reviews provide a much better reflection of the employee’s performance. These type of reviews force the employees and the managers to pay close attention all year long.
Benefits of Quarterly Performance Review
The objective of implementing a quarterly employee review system is to ensure that the organization gets the following advantages –
- Quarterly performance reviews allows managers to revise goals more quickly in the face of changing environmental demands. Business environment has got very dynamic in the past few years and an organization has to quickly adapt to the new situations & scenario to remain competitive.
- Quarterly employee review helps in ensuring regular feedback to the employees. It enforces that the manager sits individually with each team member and provide detailed feedback on his/her performance for the quarter.
- It helps in avoiding “Recency error” which is more likely in annual performance reviews.
- Recency error means that an employee is more likely to be rated on the basis of his recent performance/non-performance. The most recent performance is likely to have the most impact on the overall performance rating. Ideally the performance of the entire year should be evenly looked at for performance rating, but in recency error, unintentionally the major weight-age goes to recent performance.
- Suppose you are being rated by your manager for the entire year. If you have not performed well in just the previous month and failed in a project just before the appraisal, then due to recency error, your rating will be less because last month’s failure will be fresh in the mind of the manager.
- Quarterly performance reviews avoid the recency error effect as the performance is reviews for a smaller period and the manager is more likely to objectively analyse the performance of a relatively shorter time period.
- Quarterly performance review system provides a constant motivation to the employees as High performance results in an immediate recognition & reward rather than waiting for an entire year.
- There is a continuous reinforcement for good performance as the results are quick and apparent.
- As the annual goals are divided on a quarterly basis –
- The goals seem to be more achievable, by the employee.
- It helps in avoiding Procrastination as the employees don’t have an option of postponing the action towards the end of Appraisal year.
- It provides an opportunity to periodically review and take corrective actions before it is too late.
Quarterly Performance Review process
1. Quarterly Goal Setting
The employee and the manager should mutually discuss and set the performance goals for the quarter, before the start of the particular quarter.
The goals which are set must be SMART (i.e. Specific, Measurable, Achievable, Relevant & Time-bound).
2. Execution for achievement of quarterly goals
Once the goals are set, the employee can focus on the achievement of goals. The manager should provide all required support and facilitate the achievement of the goals.
3. Quarterly Review and feedback
At the end of the quarter, the performance should be evaluated. The actual achievement against the goal should be measured. This should first be done by the employee himself/herself – i.e. self-appraisal. Subsequencly, the manager should review the performance and give the rating and feedback to the employee.
The employee should discuss about the issues faced and what additional support he/she needs from the manager. The manager should give feedback about improvement of performance.
Along with the performance review of the quarter, the goal setting for the next quarter should also be done so that the employee is clear about the deliverable for the new quarter.
Quarterly Performance Review Template
It is extremely important to use the right format or template for the quarterly review process. You can see the review template below –
This quarterly performance review template has the following key features –
- Provision for setting Quarterly Goals along with targets. Goals are to be sent at the beginning of the quarter.
- Space for self-appraisal by employee – The employee can write his actual achievements here.
- Space for Self-rating – Employee can write his/her self-rating here.
- Space for comments by Manager – Here the supervisor can write his comments about the performance of the employee
- Space for Rating by Manager – The supervisor can write the final rating here after discussion with the employee.
- Feedback & Comments by Manager – Here, the manager can write the feedback which can be useful for improving the performance.
- Comments by Employee – Here the employee can write his final comments about his discussion with the manager related to the feedback and his agreement with the performance rating and feedback.
You can download the editable quarterly performance review template here and use it as per your requirement –
A quarterly performance review system is one of the key steps in making a Performance Driven Culture in the organization. In the coming years, we will witness most of the organizations making a move to the quarterly performance reviews.
We hope that you find the quarterly performance review template useful in your journey towards improving the performance reviews.