Performance Reviews: A Manager’s Guide

Performance reviews are crucial for effective people management. Yet for many managers, HR professionals, and business leaders, they often feel like a time-consuming task.

Done well, feedback offers an opportunity to align individual efforts with business goals, boost employee engagement and drive professional growth. Done poorly, they risk becoming a tick-box exercise that leaves both managers and employees feeling frustrated.

Whether you’re a seasoned HR manager refining your review process or a small business owner managing a growing team, this performance review guide is designed to help you navigate performance reviews with clarity and confidence. 

We’ll walk you through best practices, common pitfalls and practical tips to ensure your feedback processes are fair, constructive and genuinely valuable, for you, your employees and your business.

What’s in the performance review guide?

In this performance review guide, we’ll cover:

• A more effective way to reflect on performance
• How often you should be discussing performance
• What you should be doing before, during and after a review
• How to give valuable feedback
• Performance, professional development, professional improvement and 1:1 templates

Download performance review guide now. 

What is a performance review?

A performance review is an assessment with an employee and their direct manager to evaluate their work, define strengths, identify weaknesses, review professional goals and plan for the future.

The goal of an employee assessment is to use the feedback received for professional improvement and to identify any areas of concern. However, these meetings are not limited to these areas; they can also include discussions around:

• How the employee is currently progressing towards goals
• How effective their working style is
• Soft skills such as time management and communication
• Attendance, punctuality and behaviour in the workplace

How to conduct a good performance review?

A good employee performance review guide is a well-structured, constructive and objective evaluation of an employee’s efforts at work. The process provides valuable feedback that helps employees understand their strengths, areas for improvement and opportunities for growth.

You’ll know you’ve run a successful employee performance review when you have the following outcomes:

• Clear objectives which focus on specific job-related criteria, such as key performance indicators (KPIs), OKRs or goals and competencies relevant to the employee’s role.
• Evidence and documentation – as a manager, you should prepare for the review by gathering relevant data and documentation, such as performance metrics, project outcomes and examples of the employee’s work. But remember that the information that comes out during a performance review shouldn’t be a surprise to your employees. Your employees should know how well or how poorly they are doing on an ongoing basis to ensure maximum workplace productivity and to keep an ongoing dialogue about workplace expectations.
• Two-way communication – the review should be a two-way conversation, allowing the employee to share their thoughts, concerns and goals.
• Constructive feedback that is specific, actionable and framed in a way that encourages improvement rather than discouragement, highlights achievements and successes, but also addresses areas for development with clarity and sensitivity.
• Career pathway or career progression opportunities – the employee is clear about progression and growth opportunities, such as training, workshops or mentoring.
• SMART goals which align the employee’s efforts with the organisation’s objectives.
• Follow-up and support – after the review, provide ongoing support and follow-up and schedule regular check-ins or one-to-ones to track progress.

Most companies conduct employee assessments at least every six months. However, more regular check-ins ensure you stay informed and address team issues promptly.

A successful performance review guide process can also lead to more engaged employees, increasing productivity and driving profitability in your business.

How do you create an effective performance review process?

Let’s look at seven simple steps to creating an effective performance process.

1. Notify employees about performance reviews in advance

To set you and your team up for success with appraisals, you need to let them know in advance when their performance review will take place. Giving them time to prepare helps them reflect on their achievements and any challenges they’ve faced, leading to a more productive and meaningful conversation.

2. Have a specific goal

You need to make sure that both you and your employee know what the purpose of the meeting is as well as what you hope to accomplish. 

Prepare ahead of time by gathering relevant information, identifying key points to discuss and focusing on providing specific, meaningful feedback. Make sure any required forms or feedback are completed before the meeting. Avoid using a one-size-fits-all approach. Each employee’s performance is unique and your review should reflect that.

3. Have a meeting agenda ready

One of the best ways to ensure everyone is prepared is by creating a meeting agenda. Our advice is to send it to your employee a few days before the meeting takes place. 

Some of the most important points to cover during a performance review and to include in your agenda are:

• Do the employee’s day-to-day actions align with your business objectives?
• Is the employee held accountable for their duties and expectations?
• Are there documents to support your employee’s work habits?
• Does the employee need to be recognised or awarded for performing well?
• Is the employee compensated clearly and fairly for their work initiatives?

4. Have a positive attitude

Performance reviews should be constructive and positive, so avoid being negative. 

Remember to talk about the positives and thank your employee for their hard work or recognise their input on projects they’ve worked on. When discussing room for improvement, make sure you are offering actionable changes that your team member can go away and implement. 

Consider discussing things such as:

• How can you work together to resolve a particular problem? 
• What could you or they do differently to make sure that the problem doesn’t keep happening?

Work together with your employee to come up with solutions so both parties walk away from the meeting feeling positive. 

5. Honesty is the best policy

The only way to have a productive performance review is if you are honest from the get go. This is your opportunity to openly discuss any issues with your employee. 

Bringing up concerns in a formal setting gives your team member the chance to voice their opinion on the matter and also gives them some time afterwards to resolve any setbacks.

For a truly effective performance review, encourage your employee to be completely honest. As managers, you need to make sure that you’re supporting them fully and that you’re providing space for employees to be honest.

• Is there anything I can do to support you more?
• Is there any training or guidance you’d like to take part in?
• Is there anything you’re not happy about?

Keeping an open line of communication like this will help employees to feel valued, listened to and more secure in their work environment. It also means they’ll approach you more readily in the future.

6. Make it a collaborative process

When you are conducting a performance review, make sure that it’s not a one-way conversation and that you are open to your employees feedback and concerns.

Try not to leave any questions or problems unresolved and instead, come up with a plan or solution that has actionable goals and timelines.

It’s also important that you can discuss a future-focused plan together.

Is there an opportunity for your employee to improve their performance? Let them know that you will be monitoring their performance a little more closely and give them dates as to when they can expect a future performance review. Maybe your employee has been asking for a raise. This would be a great time to let them know if and when that could come to fruition and discuss why or why not.

After the performance review has taken place, make sure that your employees understand what has been discussed at the meeting. Let them summarise their thoughts about the meeting and make sure that they don’t leave with any questions unanswered.

7. Talk about career development

People want to know that they have opportunities to progress, grow, challenge themselves and thrive with your company. Your employee performance review is the perfect time to discuss the plan in place for employee development.

Make sure you’re openly asking them what they hope for in the future at that company. Are they happy in their current role? Would they benefit from further training or learning opportunities? 

Understanding what makes your team tick and how you can enhance their growth is likely to enhance job satisfaction and employee engagement. 

Supercharge employee assessments with the performance review guide

Employee assessments are essential for any business. However, as an HR manager or business owner, knowing where to start can be challenging. This is where our performance review guide can help you out. 

At Employment Hero, we can do much more than just enhance your assessment process. Our Employment Operating System takes the traditional isolated aspects of employment and integrates them into a seamless, human and AI-powered solution that empowers employers, employees and job seekers alike. 

Find and hire top talent with SmartMatch, seamlessly onboard new hires, automate complex payroll, drive employee engagement and more!

Download the performance review guide.