A performance cycle is the defined period - commonly annual, sometimes split into half-year or quarterly cycles - over which an employee's goals are set, progress is tracked, and performance is formally assessed at the end.
What it means
The cycle gives performance management its rhythm: goals set at the start anchor everything that follows, regular check-ins through the cycle keep them current, and the appraisal at the end closes it out before the next cycle's goals are set.
Where it fits in
Merit increases and the next cycle's goal-setting are typically timed to follow directly from the prior cycle's appraisal, so the cadence of the performance cycle often drives the timing of pay-review decisions too.
Key rules
- The recurring period goals, tracking and appraisal run within.
- Commonly annual, sometimes split into shorter sub-cycles.
- Anchors the rhythm of the whole performance management process.
- Often drives the timing of merit increase decisions that follow it.
