Table of Contents
What Is an Employee Performance Review?
A performance review is a formal assessment in which managers evaluate an employee’s work performance, identify relevant strengths and weaknesses, offer constructive feedback for skill development, and assist with goal setting.
The two primary goals are:
- deliver an accurate and actionable evaluation of the employee’s performance
- develop that person’s skills in line with current and future job requirements
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There are several different types of performance review examples, including:
- annual performance reviews
- quarterly performance evaluations
- monthly performance check-ins
- weekly one-on-one meetings
- project-based reviews
- 360-degree feedback from multiple sources (peers, direct reports, clients)
The right mix depends on your organization’s needs, but it’s generally best to use a combination of regular check-ins supplemented by formal reviews. Regardless of format, the spirit of the review should be future-focused and centered on promoting employee growth and development.
Why Are Performance Reviews Important?
Effective performance reviews are a powerful tool for driving both individual and organizational success. Key benefits include:
- aligning individual roles and responsibilities to broader business goals
- clarifying job expectations and setting employees up for success
- providing employees with regular, constructive feedback on their performances
- identifying development goals and career paths
- motivating employees by demonstrating their contributions are valued
- enabling recognition and rewards for strong performance
By tying individual performance to organizational objectives, reviews keep everyone working toward a shared vision of success. Managers can also use them to help inform an employee’s performance improvement plan and promote improved interpersonal skills in the workplace.
How to Conduct a Great Performance Review
Delivering a meaningful, growth-oriented review conversation requires advance planning. Key steps include:
Schedule ample meeting time and minimize distractions
Gather and review relevant input, such as the employee’s self-evaluation, peer feedback, and job description
Prepare specific feedback with examples of strengths and areas for development
Ask the employee to come ready to share their perspectives and questions
Discuss top priorities and co-create SMART goals to work towards before the next review
During the conversation, focus on behaviors and outcomes rather than personality traits. Share feedback with empathy and position it as an opportunity for growth. Actively seek the employee’s input and be open to their feedback as well.
Performance Review Criteria Examples
Specific evaluation criteria will vary based on the role, level, and organization; however, most performance reviews typically cover the following:
- Goals, performance, and results
- Demonstration of company values and culture
- Job-specific skills and competencies
- Behavioral skills like collaboration, communication, and problem-solving
- Compliance with policies and procedures
To ensure a well-rounded assessment, gather input from multiple sources, including the employee’s self-evaluation, peer and client feedback, and your observations.
How to Phrase Things Carefully in a Performance Review
When delivering feedback, avoid generic phrases in favor of specific guidance. For example:
Instead of: “You had a great year! Let’s aim even higher next quarter.”
Try: “Your work on the ABC project exceeded expectations and demonstrated strong project management skills. For the next quarter, I’d like to see you take on a stretch assignment to continue developing your capabilities in this area.”
Effective performance reviews require careful communication. Here’s what to embrace and avoid:
Embrace:
- Using specific behavioral examples: “Your presentation to the client last month effectively addressed their concerns and led to a 20% increase in our contract value.”
- Focusing on actions and outcomes: “By implementing the new inventory system, you’ve reduced stockouts by 30% this quarter.”
- Providing balanced feedback: “While your technical skills are strong, there’s an opportunity to improve your project management abilities.”
- Using “I” statements: “I’ve noticed that you consistently meet deadlines, which greatly contributes to the team’s success.”
Avoid:
- Using absolutes like “always” or “never”: These are rarely accurate and can put employees on the defensive.
- Making personal attacks: Focus on performance, not personality.
- Comparing employees to each other: This can create resentment and is not constructive.
- Using vague praise or criticism: “Good job” or “needs improvement” without specifics is not helpful.
Examples of effective phrasing:
Instead of: “You’re not a team player.”
Say: “I’ve observed that you often work independently on projects. How can we find more opportunities for you to collaborate with the team?”
Instead of: “Your work is sloppy.”
Say: “I’ve noticed some inconsistencies in your reports. Let’s discuss some strategies to enhance the accuracy and presentation of your work.”
Instead of: “You need to be more proactive.”
Say: “I’d like to see you take more initiative in identifying and addressing potential issues before they escalate. Can we brainstorm some ways to achieve this?”
Remember, the goal is to provide specific, actionable feedback that’s focused on future improvement. By phrasing feedback carefully and constructively, managers can turn performance reviews into powerful tools for employee development and organizational success.
How to Prepare for a Performance Review
When prepping for a performance review, use these tips to set the right tone for a constructive two-way dialogue:
Schedule the meeting at least two weeks in advance
Ask the employee to complete a self-evaluation and come prepared with questions
Write out your feedback, citing specific examples
Draft an agenda covering past performance and future goals
Allow ample time for the employee to respond and add to the discussion
The most productive reviews feel more like a conversation than a top-down evaluation. Approach it with a spirit of curiosity and a genuine desire to understand the employee’s experience and support their continued growth.
How to Write a Performance Review
Writing an effective performance review requires careful preparation and thoughtful composition. Here are key steps to follow:
Gather relevant information
Review the employee’s job description
Collect performance data and metrics
Consider feedback from colleagues and clients
Review past performance reviews and goals
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Start with a clear structure
Introduction summarizing overall performance
Detailed assessment of key performance areas
Discussion of strengths and achievements
Areas for improvement and development
Future goals and objectives
Use Specific Examples
Cite concrete instances of performance, both positive and areas for growth
Quantify achievements where possible (e.g., “increased sales by 15%”)
Be Objective and Balanced
Avoid personal biases
Provide a mix of positive feedback and constructive criticism
Other Considerations
Discuss actions and results rather than personality traits
Use clear, professional language
Avoid jargon or overly complex terms
Be direct but tactful in addressing areas for improvement
Include actionable feedback
Offer specific suggestions for improvement
Outline steps for skill development
Set SMART goals
Leave space for the employee’s self-assessment and comments
Ensure the review is clear, concise, and free of errors
Remember, the written review should serve as a basis for a productive face-to-face discussion, not a substitute for it. Use it as a tool to promote a healthier company culture and guide meaningful conversations about performance and development.
Cementing Progress After the Performance Review
The performance review is a critical milestone, but it’s not the end of the road. Sustaining progress requires an ongoing effort from both manager and employee:
Provide the employee with a written summary of their review
Have them formally acknowledge receipt and add their comments
Schedule regular 1:1s to check on goal progress and maintain alignment
Look for opportunities to provide coaching and real-time feedback
Recognize and celebrate incremental wins along the way
Performance management works best as a continuous dialogue, not a once-a-year event. By adopting a future-focused, employee-centric approach to reviews, you can transform them from a dreaded chore into a meaningful tool for driving individual and organizational success.
Wize Words
Employee performance reviews provide a powerful opportunity to acknowledge contributions, fuel employee development, and drive organizational alignment and results.
By positioning reviews as a two-way growth dialogue, you can boost employee motivation, productivity, and retention—all of which are essential for business success.
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