What is a performance review cycle?

The performance review cycle, also called the HR cycle, the HRM cycle or the appraisal cycle, covers every moment when managers talk with their people about their development. We prefer to call it the performance review cycle, because terms like HR cycle or HR conversation suggest the HR department is always involved, which is absolutely not necessarily the case. Most of the conversations in the cycle take place between an employee and their manager. It is the HR department's job to safeguard the process of the cycle. So it is not the case that an appraisal or the review cycle happens as a conversation with HR.

How do you set up an appraisal cycle?

The review cycle can be set up in a number of ways. Many organisations still work with a traditional annual cycle, which has three fixed moments:

At the start of the year you set goals together in a goal-setting or planning meeting. Halfway through the year you discuss those goals in a progress meeting or performance review. At the end of the year you evaluate the goals in a performance appraisal, which is another name for a performance review.

More and more organisations are moving away from this traditional cycle and this traditional way of appraising. They are introducing the new way of appraising and switching to a new HR cycle, which can also simplify the process. It is sometimes called the new-style review cycle. It means employees are given far more control over their own development, and the three fixed conversations a year are a thing of the past. The online or digital review cycle is much more continuous. Employees and managers are in continuous conversation about growth and development.

How can a review cycle tool support this process?

It is important to support the new-style review cycle with a good tool. For the younger generation in particular this is an absolute must. Having grown up with technology, they know better than anyone how to work with it. Anchoring the cycle in a tool makes the process far easier to engage with. A tool also makes it clear at any moment where you stand and lets you break the whole process into small steps. The Treams goals module can help you with that. The Treams tools also contain examples of review cycles and tips for employees. You can find out more in the free Treams masterclass.