Introducing a mid-year review cycle can be the "most impactful addition" that HR leaders can make in their employee performance management strategy, according to a new report.

Advice from the 2027 State of HR Report from PerformYard, a performance management software provider, underscored the need to add a second review cycle a year to boost outcomes in the organisation.

"Adding a second review cycle makes the biggest difference," the report read.

It pointed out that increasing the number of reviews is the "first step" on a path organisations take as they mature, going from two cycles in their first year to five cycles by their fifth year.

"Going from one review cycle a year to two raises the review completion percentage from 84% to 90%. Organisations running three or more cycles a year also finish each review 28% faster than organisations running one," the report read.

'Exciting' shift in performance management

The advice comes in the wake of a "really exciting" shift in how managers assess employee performance, where review forms are shorter but delivered more frequently.

"We are seeing a really exciting change in how employee performance is managed," said Sean Dunn, CEO of PerformYard.

The findings revealed that a typical performance review now has fewer questions, down from 17 in 2022 to 14 in 2026. Despite this, the typical written answers gathered from these fewer questions have grown 25% longer over the same period.

"Over the last few years we've observed a shift toward ongoing performance conversations throughout the year. More touchpoints means more opportunities to coach employees, which leads to quicker career development, and tangible organisational output," Dunn said.

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