Performance reviews are a crucial element of ensuring employee development, fostering a culture of feedback and growth. If they are done well, they inspire, motivate, and set employees on the path to greater achievements. But when reviews miss the mark, they can lead to confusion, disengagement, and even turnover. In this blog article we share our top tips on how your organisation can conduct performance reviews that make a real difference.
1. Set Clear, Measurable Objectives
Before any review takes place, ensure that employees have clear, well-defined objectives aligned with broader company goals. Specific, measurable, achievable, relevant, and time-bound (SMART) goals ensure clarity on expectations and make performance reviews fairer and less subjective.
Tip: Throughout the year, encourage managers to document employee progress against these goals. Keeping an ongoing record will make performance reviews more objective, evidence-based and ensure they are kept up to date.
2. Create a Culture of Continuous Feedback
Performance reviews shouldn’t be the first time employees hear feedback. Establishing a culture of regular feedback—weekly check-ins, monthly one-on-ones, and quarterly reviews—allows managers to address challenges and celebrate wins promptly. Continuous feedback leads to fewer surprises during formal reviews, making them more of a summary than delivering a surprise review.
Tip: Encourage managers to regularly ask employees for feedback as well. It’s a great way to improve trust and gain mutual respect.
3. Prepare for the Review Meeting
Preparation is crucial for both managers and employees. Encourage managers to review notes, track achievements, and assess goal progression ahead of time. The employee should also come prepared to discuss their own achievements, challenges, and any areas where they need support.
Tip: Offer employees a simple self-assessment form before the review. This helps them reflect on their progress and gives managers insight into how employees view their own performance.
4. Conduct Balanced, Constructive Conversations
During the review, emphasise both strengths and areas for improvement. Avoid making it a one-sided conversation; instead, encourage a dialogue. Ask open-ended questions like, “What accomplishments are you most proud of?” or “What could help you achieve even more?” This approach makes the review feel less critical and more supportive.
Tip: Use the "SBI" model (Situation, Behaviour, Impact) for feedback. Describe the situation, the observed behaviour, and its impact. This framework ensures feedback is specific, is based on what is observed and minimizes misunderstandings.
5. Focus on Development and Future Goals
A forward-looking approach is essential. Once past achievements and challenges have been discussed, shift the focus to the future. Set new goals, identify training needs, and discuss career aspirations. This demonstrates that the organisation is invested in the employee’s long-term success.
Tip: Collaboratively create a development plan with clear action steps. Setting milestones for these goals helps employees feel more motivated and accountable.
6. Document the Review Process
After each review, managers should document the discussion, agreed-upon goals, and any development plans. Documentation ensures accountability for both parties and provides a reference point for future reviews.
Tip: Use a consistent format across the organisation for documenting reviews. It will streamline the process, simplify tracking, and make it easier to analyse trends or identify common areas for team development.
7. Follow Up Regularly
A performance review should be the start of an ongoing conversation. Schedule periodic follow-up meetings to discuss progress toward goals, address any new challenges, and provide feedback.
Tip: Managers can set reminders for follow-up sessions to ensure no one is left wondering about their progress or development plan.
8. Don’t cancel
We are all busy in our everyday roles, but try to avoid cancelling or rearranging a performance review wherever possible. It sends a message to the employee that their review is not important to you and can lead to low morale.
Tip: Schedule in advance and don’t allow other meetings to take priortity
Performance reviews, when done effectively, are a valuable tool for employee engagement and growth. They build trust, enhance communication, and show employees that their contributions matter. By following these strategies, your organisation can transform performance reviews from dreaded events into powerful moments for alignment and motivation. If you’re looking for additional support in refining your review process, we at Rico HR consultancy can help. Contact us on hello@ricohr.co.uk for more information.
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