What is an End of Year Review? A Comprehensive Guide for Employees and Managers

Call your direct reports into a meeting room (or online meetings these days), give them an official-looking document, and begin the same, tired conversation of what worked and what didnt.

Ditch this approach if you want to reinforce star performers and guide the average ones. This guide includes everything you must know about year-end reviews, including:

An end of year review, also known as an annual review, is a formal performance evaluation that assesses an employee’s job performance and contributions over the past year. End of year reviews are an important part of career development and help set expectations for the year ahead.

In this comprehensive guide, we will cover everything you need to know about end of year reviews from the perspective of both managers and employees.

What is the Purpose of an End of Year Review?

There are several key purposes of conducting end of year reviews:

Review job performance The primary goal of an end of year review is to critically assess how well an employee performed in their role over the past year. This includes examining strengths areas for improvement, goals met, and goals missed.
Provide feedback: The review process facilitates open communication between managers and direct reports. Employees receive constructive feedback on their work and behaviors.
Set future goals: The manager and employee collaborate to set goals, performance objectives, and career development plans for the next year.
Determine training needs: Performance gaps identified in the review can highlight areas where additional training or mentoring may be beneficial.
Decide on promotions Annual reviews often inform decisions about pay raises, bonuses, and promotions Top performers may be rewarded.
Boost employee morale: Reviews let employees know they are valued. Praise and recognition for achievements can improve job satisfaction.

Overall, the end of year review meeting serves as a checkpoint for managers to align on expectations with employees and guide their progression.

When Should End of Year Reviews Happen?

Most companies conduct annual reviews once a year near the end of the fiscal or calendar year. For example, an employee review in December would assess performance from January 1st to December 31st.

Here are some typical times when reviews occur:

Fiscal year end (common fiscal year ends: June 30, September 30)
Calendar year end in December
Anniversary of employee start date

While formal evaluations typically happen annually, more frequent check-ins are recommended too. Quarterly reviews or monthly one-on-one meetings provide multiple touchpoints to give feedback.

What Does a Good End of Year Review Look Like?

An effective end of year review should be:

Thorough: All aspects of the employee’s performance are evaluated in detail.
** Objective:** Assessments focus on facts, data, and observable behaviors, not personal opinions.
Developmental: The focus is on growth by building on strengths and improving weaknesses.
** Collaborative:** Employees should provide self-feedback and be involved in setting new goals.
Positive: Even in areas needing improvement, feedback is delivered constructively.
Focused: Priority is given to 3-5 biggest accomplishments and development needs.
Forward-looking: While assessing the past year, the emphasis is planning objectives for the future.
Well-documented: Evaluations are recorded and shared with employees.

End of Year Review Process Step-by-Step

Here is an overview of the key stages of conducting annual reviews:

1. Set Expectations

Schedule review meetings in advance so employees can prepare.
Communicate the format, assessment criteria, and desired outcomes.
Establish guidelines for self-evaluations if required.

2. Gather Data on Performance

Collect feedback and performance metrics from various sources.
Evaluate achievement of past goals.
Review work products, projects, and contributions.
Consider strengths demonstrated and skills gained.

3. Complete Performance Evaluations

Managers complete their assessments.
Employees fill out self-evaluations if required.
Compile supporting documents and data.

4. Discuss the Review

Manager and employee meet to discuss the review.
Provide feedback and evaluation of past performance.
Review goals and discuss areas for growth.
Set objectives for the upcoming year.

5. Document the Review

Record key discussion points, performance ratings, and new goals.
Share formal documentation with the employee.
Incorporate into personnel files.

6. Follow Up On Development Plans

Identify training, mentoring, or resources needed.
Continue providing support and feedback throughout the next year.
Check in on progress toward goals periodically.

What are Some Common Rating Scales for Performance Reviews?

Reviews typically include performance ratings across key competencies to benchmark employees against standards. Some popular rating scales include:

1-5 rating: (1 = Unsatisfactory, 5 = Exceptional)
Letter ratings: A, B, C, D, F
Descriptive ratings: Exceeds Expectations, Meets Expectations, Needs Improvement
Percentage scales: 1-100% or an 80/100 rating

The ratings translate evaluation criteria like quality of work, productivity, reliability, and interpersonal skills into measurable ratings.

Key Things Employees Should Do to Prepare for an End of Year Review

As an employee, adequate preparation is essential to having a productive review meeting. Here are some tips:

Reflect on your achievements: Document your accomplishments and contributions over the past year. Quantify your achievements with data.
Review past goals: Assess your progress and whether you met expectations set in your prior review.
Assess your strengths: Identify the skills and competencies you leveraged effectively. What were your biggest strengths this past year?
Consider your weaknesses: What areas do you see needing improvement? Where do you need more mentoring or training?
Gather feedback: Ask colleagues for input about your performance. Consider 360 feedback.
Set goals for next year: What projects or areas of growth should you focus on next? Draft 2-3 proposed goals.
Prepare questions: Note any questions you have about your role, career path, or the company’s future plans.

Coming prepared with talking points demonstrates engagement in your development and facilitates an open dialogue.

How Should Managers Conduct End of Year Reviews?

As a manager, thoughtfully facilitating the review meeting leads to a meaningful experience for your employee. Here are some best practices:

Eliminate distractions: Find a quiet, private space and avoid interruptions. Give the meeting your full attention.
Set a positive tone: Start the conversation on a friendly, encouraging note to put employees at ease.
Be objective: Reference data, facts, and observations. Avoid biases or personal opinions.
Listen actively: Let employees share their perspective. Ask follow up questions without interrupting.
Give specific feedback: Highlight 1-2 key strengths and concrete areas for improvement. Provide examples.
Define expectations: Clarify how performance ratings translate into exceeded, met, or未met expectations.
Align on goals: Discuss 3-5 top goals for the employee to focus on next year.
Close positively: Recap the discussion and express confidence in their future growth.

Proper planning leads to structured, engaging review meetings that motivate employees.

Example Questions to Ask Employees in an End of Year Review

Guiding the discussion with thoughtful questions fosters an open and meaningful dialogue. Consider asking:

What were your biggest accomplishments this past year? Which are you most proud of?
What goals from last year do you feel you met successfully? What contributed to that success?
What goals were you unable to complete? What obstacles or challenges prevented completion?
Where have you made your greatest areas of improvement and growth over the past year?
Which aspects of your job role do you feel most confident in? Which areas are you still working to strengthen?
What training or development opportunities would help you improve in the coming year?
What are your top 3 priorities that you want to focus on achieving next year?

Asking insightful questions shows genuine interest in the employee’s point of view while gathering valuable insights about their experience, growth needs, and motivations.

Tips for Employees on Responding to Feedback in Reviews

Hearing critical feedback can be difficult. Employees should keep these tips in mind:

Listen openly: Don’t interrupt or get defensive. Hear your manager out fully.
Ask clarifying questions: If you need examples or context, follow up for greater understanding.
Respond professionally: Even if you disagree, stay calm and collected. Avoid emotional reactions.
Accept critiques: View negative feedback as an opportunity for improvement, not a personal attack.
Find the value: Try to learn something from even the most difficult feedback. Evaluate if there are any valid points you can apply.
Summarize key points: At the end, restate the core feedback highlights and your key takeaways.
Say thank you: Express appreciation for your manager taking the time to thoughtfully review your performance.

Handling feedback with maturity paves the way for growth. The right mindset turns critiques into constructive lessons rather than sources of discouragement.

Best Practices for Managers Delivering Performance Feedback

When giving critical feedback, managers

what is end of year review

How to conduct a year end review?

Before the meeting, the employee should review their performance and create a list of goals and objectives for the upcoming year. They should also take the time to reflect on their accomplishments, successes, and challenges to discuss during the meeting.

During the meeting, the manager and employee should focus on what went well and what could be improved. The manager should be open to listening to the employees ideas and discussing potential solutions. The employee should also be prepared to ask questions and provide feedback.

what is end of year review

Once the meeting is over, the manager and employee must create a follow-up plan to ensure that the employee is held accountable for their goals. The manager should provide feedback and support to help employees reach their goals.

Overall, performance conversations can be difficult, but with the proper preparation, focus, and follow-up, these conversations can be productive and beneficial for both the manager and the employee.

Also read: Online meeting etiquette rules to follow.Keep record of all your year-end reviews. Record, transcribe, and summarize your online meetings.

Don’t base feedback solely on results

Be careful not to rely solely on results while giving positive feedback. Sometimes even after giving their all, the project could fall through for several reasons outside anyones control. In such a scenario, holding your employees accountable might be unfair.

Communication Tips for Performance Reviews: What to Say in Your Performance Review

What is a year end review?

“Year end reviews” refer to the formal or informal assessments, evaluations, or appraisals that take place at the conclusion of a calendar or fiscal year. Year end reviews often involve managers or supervisors assessing the performance of their employees.

What is a year-end review?

A year-end review is a type of performance evaluation that happens at the end of a calendar or fiscal year. Some companies have fiscal year ends in different months, such as May or September. Ultimately, you can opt to conduct your reviews based on the fiscal year end or the calendar year end.

What is an end-of-year employee review?

The end-of-year employee review is a formal assessment of employees to evaluate performance, challenges, weaknesses and improvement points. The review meeting is a perfect opportunity for both employees and managers to get constructive feedback on their perspectives. Employees and managers also get a chance to ask work-related questions.

What is an example of a successful end of year employee review?

Successful end of year employee review examples include an exchange—rather than one-way feedback, use these moments as an opportunity for employees to share their perspectives on their performance, career aspirations, and any challenges they may have faced.