Are Performance Reviews Necessary?

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There is a lot of discussion about whether or not performance reviews are necessary. While it’s true that a company can function without them, there is certainly a benefit for the company and the employee if you make performance reviews a regular part of your organization.

Performance Reviews Help Identify Strengths

Quality employees are hard to find. Sometimes, it takes development to get an employee to the place that they need to be. That is when performance reviews come in. This process is all about identifying strengths and weaknesses so that employees have an opportunity to grow. The time investment in helping a current employee develop is much more efficient than firing and hiring someone new.

Creates a Transparent Rewards System

Performance reviews make it easier to establish a rewards system that everybody can learn and follow. You can clearly outline the types of rewards that correlate with certain achievements. Not only does this give something for employees to work toward, but it keeps the process simple to follow for both the employee and the employer.

Improves Communication

Performance reviews are a great communication tool. This allows employees and their leadership to discuss any issues and work through problems at a much lower level. The system that you put in place should encourage discussion which will improve working conditions overall.

Performance Reviews Help Set Goals

Goals are a driving force for employees. Identifying weaknesses shouldn’t be a negative thing. Instead, it should be an opportunity for employees to establish a goal for themselves and then make the moves necessary to achieve that goal.

Streamlines Processes

There is a lot of valuable information on performance reviews. It allows supervisors the opportunity to learn more about their employees and identify pain points that they may have. Having that feedback to refer back to can help alleviate problems in the future and could assist in creating policies and procedures that would be beneficial to the entire team.


Performance reviews can help a company communicate effectively with employees, establish goals, and understand what employees need in order to thrive. The information is invaluable, and if the process is conducted properly, it could be a huge time saver.

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