How often should employee performance be reviewed?

Employee performance reviews have long been a cornerstone of organizational development. But the traditional once-a-year sit-down with a manager — complete with awkward silences, generic feedback, and a few vague goals — is no longer cutting it. In today’s dynamic business environment, especially for small to mid-sized businesses, timely and intentional feedback isn’t a “nice-to-have” — it’s a must.

So, how often should employee performance be reviewed? The short answer: more often than you think. The long answer? Let’s explore it.

The Problem with Annual Reviews

The once-a-year review has been the default in many companies for decades. It’s formal, it’s familiar, and it’s often dreaded — by employees and managers alike.

Here’s why annual-only reviews fall flat:

• Delayed feedback leads to stagnation. If you wait 12 months to talk about performance, any issues or achievements are stale by the time you address them.

• They’re often biased by recency. Managers tend to remember what happened in the last 30-60 days, not what happened 6 or 9 months ago.

• Employees feel unsupported. When feedback is infrequent, employees may feel like they’re operating in a vacuum — especially in remote or hybrid environments.

• They’re resource-intensive. Gathering documentation, scheduling, and completing formal reviews once a year creates a bottleneck in HR workflows and leads to rushed assessments.

The bottom line: annual reviews are too little, too late.

Quarterly Reviews: A New Standard for Agility and Alignment

Quarterly reviews hit the sweet spot between consistency and manageability. Here’s why many modern businesses are moving to a quarterly cadence:

✅ Faster Feedback Loops

Feedback that’s delivered close to the time of the action is more impactful. Quarterly reviews allow for timely course-corrections and recognition.

✅ Improved Goal Alignment

With shifting business priorities, quarterly reviews let managers adjust employee goals in real time, keeping the whole team aligned with broader company objectives.

✅ Better Employee Engagement

Employees want to know where they stand. A Gallup study showed that employees who receive frequent feedback are 3.6 times more likely to be engaged at work.

✅ Early Intervention on Performance Issues

Quarterly conversations help catch red flags early, allowing you to provide coaching before underperformance becomes a habit.

Monthly Check-Ins: Micro Conversations, Major Impact

If you really want to supercharge your team’s performance, consider layering in monthly one-on-one check-ins alongside quarterly reviews.

These aren’t formal reviews — they’re quick, intentional conversations that cover:

• Workload and priorities

• Wins and challenges

• Support needs

• Progress toward goals

Monthly check-ins promote psychological safety, demonstrate that managers are accessible, and give employees a sense of momentum.

What About Informal Feedback? Do That Too.

While structured reviews are important, informal feedback is the glue that holds great performance cultures together.

This includes:

• Recognition in team meetings

• A Slack message or quick email

• Constructive feedback in the moment

• A hallway “great job on that presentation”

Think of informal feedback as the fertilizer for performance growth — small, regular doses lead to better long-term results than once-a-year dumps of information.

Tailoring Review Frequency by Role or Tenure

Not all employees need the same level of review. Consider adjusting your approach based on:

🆕 New Hires

• Weekly check-ins in the first month

• Monthly reviews for the first 90 days

• Quarterly reviews thereafter

📈 High Performers

• Still benefit from regular check-ins to maintain motivation and stretch goals

• Less micromanagement, more coaching and recognition

📉 Underperformers

• May require bi-weekly meetings, performance improvement plans (PIPs), and close tracking

Best Practices for Conducting Performance Reviews

Whether you go quarterly, monthly, or a hybrid approach, the quality of your reviews matters as much as the frequency.

1. Be Specific

“Do better” is not feedback. Use data, examples, and metrics when possible.

2. Balance Positives and Opportunities

Even with underperformers, balance constructive criticism with recognition of what is working.

3. Document Everything

Use shared documents or performance management software to track conversations, goals, and follow-ups.

4. Make It a Dialogue

A review should be 50/50: half manager input, half employee reflection. Encourage questions and collaboration.

5. Set SMART Goals

Specific, Measurable, Achievable, Relevant, and Time-bound goals give employees a clear path forward.

The ROI of More Frequent Reviews

Some business owners resist increasing review frequency out of concern it’ll create “more work.” Ironically, the opposite is true.

Here’s how more frequent performance reviews actually save time and money:

• Reduced turnover: Employees who feel supported are more likely to stay.

• Fewer HR issues: Problems are addressed early before they spiral.

• Improved productivity: Clarity and coaching drive better output.

• Better culture: Regular feedback builds trust, motivation, and loyalty.

Technology Tools That Make It Easier

Modern HR tech makes implementing regular reviews a breeze. Consider using:

• Lattice, 15Five, or Culture Amp for structured reviews

• Asana or Trello for tracking personal goals

• Slack or MS Teams for informal recognition

Even Google Docs or Excel can work in a pinch — what matters most is consistency.

Signs It’s Time to Rethink Your Review Cadence

You might be overdue for a performance management upgrade if:

• You’re only reviewing once a year or less

• Your team seems unclear on their goals

• Managers struggle to give feedback

• High-performers aren’t being recognized

• Low-performers go unaddressed for months

If any of these sound familiar, it’s time to implement a rhythm of feedback that builds momentum — not just moments of evaluation.

Timeframe	Review Type	Purpose
Monthly	1-on-1 Check-In	Relationship building, support
Quarterly	Formal Performance Review	Goal tracking, course correction
Annually	Strategic Review	Big-picture career conversation

Final Thoughts: Feedback Is a Culture, Not a Calendar Event

The frequency of your reviews is a reflection of your leadership priorities. When feedback is baked into your culture, performance doesn’t feel like a report card — it becomes a shared, continuous journey.

Whether you’re running a naturopathic clinic, a tech startup, or a growing bookkeeping firm, how often you review performance tells your employees how much you value their contribution — and how committed you are to helping them succeed.

So don’t wait until year-end. Make reviews a rhythm, not a reaction.

🔁 Next Steps

1. Audit your current performance review process

2. Pilot quarterly reviews with a small team

3. Train your managers to give timely, constructive feedback

4. Use tech to stay organized

5. Build feedback into your weekly rhythm

And if you're not sure where to start — reach out. We help businesses design performance processes that grow people and profit.

This Q&A does not constitute legal, accounting, or tax advice and

does not address state or local law.