How often should performance appraisals typically be conducted?

Conducting performance appraisals annually is a widely accepted practice in many organizations for several reasons. An annual review allows for a structured and comprehensive evaluation of an employee’s performance over a significant period. This timeframe is long enough to observe trends in performance, assess achievements, and identify areas for improvement.

Annual appraisals also align with business cycles, allowing managers to evaluate employee contributions in relation to overall organizational goals, such as budgeting and strategic planning. Furthermore, this frequency ensures that employees receive feedback at least once a year, which is crucial for their development and engagement in their roles.

While continuous feedback or more frequent discussions about performance can enhance employee engagement and performance, an annual appraisal serves as a formal checkpoint to document performance, recognize achievements, and facilitate conversations about career development and future goals. This balance helps maintain momentum throughout the year while providing a systematic approach to performance management.