During the performance review, what should be explained if it is the employee's first review?

The correct focus during an employee's first performance review is to explain the process and purpose of the reviews. This is crucial in creating a clear understanding of what the employee can expect during the review and how it will benefit their professional development. The review process informs the employee about the evaluation criteria, frequency of reviews, and what is expected of them moving forward. It helps to set the stage for open communication and allows the employee to know how their performance will be assessed, which can alleviate some anxiety that often accompanies performance reviews, especially for those who are new to the concept.

Discussing the performance standards of the industry would provide context but does not directly address the specific process of the review at hand. While understanding the financial status of the company may be vital information for an employee, it is not directly related to their individual performance review process. Similarly, the direct reports structure may pertain to an employee's role within the organization but is not a priority at the time of their first performance assessment. Therefore, focusing on the review process and its purpose is the most pertinent to ensure the employee feels informed and prepared.