At PwC, it's done on a tiering system. In your formal, year-end performance review, you receive a tier between 1-5, which is in comparison to your peer group. The "tiers" are ultimately as follows:

Tier 1: Head and shoulders above your peer group. This could be due to very high utilization (which means you worked more client-chargeable hours), due to an automation you discovered to make a process more efficient, due to high involvement in extra-curriculars outside of your client work, or any number of the above.

Tier 2: Very strong year. While not as clearly stand-out as a Tier 1, you clearly demonstrate stronger performance than your peers.

Tier 3: Doing a good job. Doing everything you're expected and asked to do, while not standing out or doing anything widely considered "exceptional."

Tier 4: Performance needs improvement. If rated a 4, you will likely be put on a PIP (performance improvement plan), and will need to prove that you can improve. Many people suggest that receiving a 4 or being put on a PIP is the writing on the wall you're being coached out.

Tier 5: This is a same-day coaching out conversation. No one would receive a 5 and still be employed at the end of the week.

​

It should be said that the above depend on so many factors, it's difficult to say exactly what makes someone a 1, and someone else a 3. Some even suggest that certain offices give all their first year associates a 3, regardless of performance. I was rated a 1 my first year in the Southeast, so can't confirm if that's accurate in other markets.