Job Performance Evaluation and Performance Review

Use this customizable PeopleGoal Job Performance Evaluation and Performance Review Policy template as an outline for your company’s performance review policies.

The PeopleGoal Job Performance Evaluation and Performance Review Policy describes the process of job performance evaluations and reviews, what employees may expect from performance appraisals, and how performance evaluations are linked to employee compensation or bonuses. Download the policy template to PDF and simply adjust the information in the brackets to suit your company’s needs.

What is a Job Performance Evaluation or Review?

Performance evaluations or performance reviews are used to monitor employee growth and satisfaction as well as to express company needs and objectives for the upcoming year. The purpose of a performance review is to provide an opportunity for employees to develop through professional activities, open a regular and meaningful conversation between the company and its employees, and to identify documented performance plans.

What types of Job Performance Evaluations are included in this policy?

Every company's performance evaluation and review process is different. How often and in what format you conduct your reviews is specific to your organization, so it's helpful in your policy to include an overview of each type of appraisal and how often employees should expect to evaluate their job performance. Included in this policy are two types of reviews.

You can build out your own performance evaluations using our 5 Templates for Performance Reviews as a start.

5 templates for performance reviews

Special Performance Review

Special performance reviews are an informal opportunity for the Department Managers to commend employees or teams for their performance results. These performance evaluations may be held in person or in writing. The purpose of special performance reviews is to issue a one-time reward to employees who have been ‘exceptional’ in their departments. For example, if an employee works as part of a team and exhibits more than what is required from them, a special performance review may take place.

‘Exceptional’ employees perform additional duties, set positive examples for others, and regularly exceed company targets. If an employee demonstrates the exceptional standard by:

  • Taking the lead on new assignments;
  • Showing up early to company meetings;
  • Maintaining a positive attitude under pressure;
  • Increasing department revenue; and
  • Bringing positive attention to the department through their work product.

Special performance reviews may result in the award of a one-time bonus. These reviews differ from Annual Performance Reviews, as they do not take place at regular intervals. Special performance reviews, and the associated bonuses, are limited to once a year. The Executive Director of the company is responsible for reviewing the work of all supervisors. Work reviews for other staff are the responsibility of the appropriate supervisor.

For more information about one-time special performance bonuses for employees, see the One-Time Bonuses section of the employee handbook.

Annual Performance Review

Annual performance reviews are a formal opportunity for Department Managers and employees to exchange observations about the working relationship over the previous year. These performance reviews must be held in person, and documented in writing. The purpose of the review is to have an open and honest discussion regarding employee and department performance.

During the annual performance review, the Department Manager is expected to evaluate the standard set by the prior year, set goals for the oncoming year, and determine whether an employee has earned an annual bonus. Department Managers are expected to review the quality of an employee’s performance, attendance, dependability, and attitude. Employees may make suggestions for improving the working relationship. Needs of the company must be communicated clearly by Department Managers and other supervisors.

In preparing for the review meeting, employees should understand that their Department Manager may review documentation and notes of past performance discussions, performance expectations based on job description, records of compliments and complaints made for/against the employee in the previous year, and sample work products from the employee.

For more information about annual bonuses for employees, see the Annual Bonuses section of the employee handbook.

Disclaimer: The PeopleGoal Policies are general templates and should only be used as a basis for company policies. Please take into account all local, state, and federal laws when drafting your company’s final policies. This is not a legal document or a contract, and PeopleGoal will not assume any legal liability associated with the use of this document.

Want to learn more about the job performance evaluation and performance reviews cycle? Head over to our Essential Guide to Performance Reviews to learn about the history of annual appraisals, current trends and industry best practices, and tips for employees and managers when completing their evaluations.

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