A Performance Rating is an assessment or evaluation given to an employee to measure and communicate their level of performance and contribution in their role. It is a systematic way of providing feedback and measuring an employee's accomplishments, skills, and behavior against predetermined performance criteria or goals.

Example
A rating scale of 1 to 5, with 1 being the lowest and 5 being the highest, may be used. Based on this scale, an employee's performance may be rated as a 3, indicating satisfactory performance, or a 4, indicating above-average performance. The performance rating is typically determined through a combination of ongoing feedback, regular performance evaluations, goal achievement assessments, and supervisor assessments. It serves as a basis for making decisions related to compensation, promotions, training and development opportunities, and performance improvement plans. The performance rating process is designed to provide employees with a clear understanding of their performance expectations, areas of strength, and areas for improvement, as well as to enable managers to differentiate performance levels and make informed decisions regarding employee performance.