What is the primary purpose of performance reviews for team members?

The primary purpose of performance reviews for team members is to evaluate achievements and set future goals. This process allows for a comprehensive assessment of an employee's contributions and strengths, linking individual performance to the organization's objectives. By discussing accomplishments, areas for improvement, and setting measurable goals for the future, performance reviews serve as a vital tool for personal and professional development. This aligns employees with the company's mission, helps identify training needs, and encourages ongoing conversations about career progression and skill enhancement.

In contrast, promoting team members based solely on tenure does not account for their actual performance or contributions. Using performance reviews to punish underperforming employees detracts from the intended constructive feedback and development focus. Similarly, while assessing customer satisfaction may be relevant for certain roles, it is not the primary goal of a performance review, which centers on employee growth and achievement evaluation.