How to Structure an Annual Performance Review Process
A well-designed performance review process does more than evaluate past performance, it helps shape your team's future. Whether you're implementing a traditional annual review, a 360-degree feedback system, or both, the key is to create a structure that aligns with your business goals and supports individual growth. Here's how to build a strategic review process that delivers value.
What Is an Annual Performance Review?
An annual performance review is a structured evaluation of an employee's performance over the past year. It often includes a self-review, manager assessment, and a formal discussion focused on achievements, challenges, and development goals.
Key Elements of an Annual Review:
Goal alignment and progress
Core competencies and role expectations
Strengths and development areas
Performance ratings or scoring
Development plans and goal setting for the year ahead
What Is a 360 Review?
A 360-degree review collects feedback from multiple sources: peers, direct reports, cross-functional colleagues, and supervisors. It offers a more well-rounded view of an employee's contributions, interpersonal skills, and leadership impact.
Annual reviews provide structure and continuity while 360 reviews offer broader insight and reduce manager bias. Together, they enhance feedback quality and team alignment.
How to Build the Right Review Process
At The Hazel Group, we design customized performance review frameworks based on:
Company size and team structure
Role types and levels (individual contributor vs. manager)
Organizational goals and culture
What you want to do with the results (e.g., development planning, promotion readiness, succession planning)
Our Strategic Approach Includes
Designing tailored review architecture
Recommending or setting up review tools in a Human Resources platform
Creating custom question sets aligned to competencies and values
Providing templates and training for managers and employees
Helping analyze results and translate insights into action
Supporting development plans and follow-up conversations
Why This Matters
A strategic review process boosts engagement, retention, and leadership development. It helps clarify expectations, recognize contributions, and identify growth paths for every team member.
Whether you're building your first review process or upgrading your current system, The Hazel Group can help you structure meaningful performance reviews that drive employee development and organizational success. Schedule a consultation with The Hazel Group today.
