What is a performance review?

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

The goal of a performance review is to use the feedback received for professional improvement, and identify any areas of concern. However, performance reviews 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; and
• Attendance, punctuality and behaviour in the workplace.

Check out our 360° Feedback Template to gather feedback from all angles on an employee’s performance.

How can performance review templates help?

Performance review templates are useful because they provide a standardised way for you to have productive and impactful conversations. They can also be easily adapted to suit different industry or team needs.

More importantly, a performance review template provides a guideline for you to follow through the entire process, keeping you in check so you won’t miss any key areas or topics while conducting the actual review.

Using a performance review template also makes the process more structured and formal — which is important to keep as the organisation continues growing. Regardless of how the size of the team changes, the feedback process should be universally standardised across the organisation.

When you’ve created an effective performance review process you’re happy with, it’s essential to stick to it and follow through. It provides greater visibility and transparency across the business as employees know what to expect, and reduces bias in the performance management process.

A well-designed performance review template provides employees with ample space for self-evaluation and honest communication, as well as a rating scale to track overall performance.

Overall, it helps to strengthen the relationships between managers and their direct reports, and creates a healthy work environment that everyone can thrive in.

Who’s responsible for conducting performance reviews?

The line manager of an employee is usually responsible for conducting performance reviews, as they work the closest together in day-to-day tasks and also understand the employee’s role and responsibilities the best.

In special cases, it could also involve a more senior leader or someone from Human Resources.

How often should you conduct employee performance reviews?

Once upon a time, performance reviews were held annually, with no other form of review or feedback process throughout the year. And although we say once upon a time, the reality is, many organisations are still using this cadence.

This means that there are millions of employees out there feeling left in the dark when it comes to their performance because it is only reviewed at annual appraisals.

When you think about it, an entire year of work achievements being discussed in an

hour-long meeting just doesn’t make sense… How can you possibly discuss all of your achievements from one year, in one hour?

Review meetings aren’t an effective tool to determine an employee’s performance if they’re only conducted once a year. They need to be used in conjunction with other meetings like 1:1s.

When determining the cadence of your teams’ performance reviews, you need to find what works best for you and your organisation.

There are a few things to consider:

• Are managers holding weekly 1:1s with their direct reports?
• Does your company culture embrace feedback?
• Is the current review structure and cadence working for your team?
• Does your team want more feedback?

If you need some recommendations, here are some options we’ve come up with:

Feedback schedule example 1:

• 1x bi-annual performance review
• Weekly 1:1 with direct reports with a set list of questions
• Defined quarterly goals using OKRs
• 1x annual salary review

Feedback schedule example 2:

• 1x quarterly performance review
• Fortnightly 1:1 with direct reports with a set list of questions
• Defined quarterly goals using OKRs
• 1x annual salary review

No matter what you choose, you should continually embrace a culture of regular feedback and employee/manager catch ups. Not only can it improve communication, performance and overall engagement, it also ensures that no surprises occur during your performance reviews. If you don’t, you’re missing out on vital opportunities for professional development that will only propel your workforce forward.

What can you use the performance review template for?

Here’s a full list of use cases for the performance review template:

• Quarterly performance review: An evaluation an employee’s performance every three months
• Monthly performance review: An evaluation of an employee’s performance every month
• 90-day performance review: An evaluation of an employee’s performance during the onboarding period
• 360 Performance review: A comprehensive feedback process that gathers information about an employee from multiple sources

Tips for conducting effective performance reviews

Before the performance review, you should: 

1. Block out time in your calendar and send invites to your direct report(s)

First things first – you need to lock in a time and date for the performance review. Make sure you give ample notice to your direct reports (more than two weeks is ideal). You should also set aside more time than you think is necessary, to create a buffer in case you run over. The last thing you want is to have to stop the conversation because you didn’t have enough time.

2. Create a career development plan

When you send a performance review calendar invite to your direct reports, include a link to a career development questionnaire. You should ask them to fill it in prior to the meeting.

You can choose to go through this during the review, or schedule in some time for a follow-up meeting. It’s important you get your direct reports thinking about how they want their career journey to progress, and how you can help them get there.

Need some inspiration? We’ve created a career development plan template that your direct reports can fill out.

3. Review how their goals and performance are measured

Before you get started, it’s important to determine how you’re measuring their performance. Do they have sales targets? Or customer satisfaction scores? Is it based on their output or ability to meet their objectives and key results (OKRs)?

These are all questions you need to consider prior to the performance review meeting. You should create a document that has their actual performance and results, compared against their expected performance.

4. Identify areas of improvement

As a manager, you know what the areas of improvement are for your direct report. Your role is to mentor those you manage, so identifying areas of improvement plays a critical role in helping them develop. Whether it’s time management, attention to detail or technical ability, this is the time to encourage your employee(s) to develop in specific areas.

5. Assess whether additional training is required

Once you’ve identified areas for improvement, you should assess whether additional training is required. Although you don’t have to hand-hold them through choosing a specific course, you should let them know the areas where you think a course would prove beneficial. This is about empowering them to choose an area of interest, and letting them take the wheel with their learning and development.

6. Identify their achievements and strengths

Now that you’ve identified areas for improvement and assessed whether additional training is required, it’s time to move onto the good stuff. Reviewing achievements and strengths is one of the most important parts of a performance review, and can really help inspire and motivate your direct report(s).

You should point out specific projects, events or skills where they did a great job, recognise the great work they’ve done and encourage them to continue striving for bigger and better results.

7. Create and send a self-evaluation form to your direct report

When it comes to evaluating performance, it’s important to understand both your view and your direct reports’ point of view. At the end of the day, everyone has different work ethics and standards, so it’s important to see where both parties stand.

For example, you might think your direct report is doing a fantastic job. However, they might be placing additional pressure on themselves to perform and believe they could be doing more. This is your chance to get on the same page when it comes to performance.

This is where the self-evaluation performance review template in this bundle comes in!

During the performance review, you should:

8. Avoid rushing through the performance review

The most important part of a successful performance review is giving your undivided attention. This is time dedicated for your direct report to walk through their achievements and results, and it’s crucial you provide your full attention.

You don’t want to rush through the process – focus on actively listening to what they have to say and provide constructive feedback wherever possible. Remember that it’s a two-way conversation, so give them the attention they deserve and avoid dominating the conversation at all costs.

9. Share areas for improvement

Dedicate the majority of the performance review to discuss achievements, strengths and areas for improvement. Encourage them to provide quantifiable results and talk through areas where they’ve gone above and beyond in their role. You should also be providing feedback throughout the process and discuss any areas where thoughts differ.

10. Talk through the self-evaluation

Self-evaluation is an important part of the review process as you can see how aligned you and your direct report(s) are. You want them to be self-aware around their own performance, so it’s important to provide feedback — especially if your opinions as a manager are different.

If your employee has been with the organisation for more than one year, we suggest comparing it to the previous performance review, and identifying any areas where performance has dramatically improved or declined.

11. Provide actionable steps for career development and goals

It’s important to know the aspirations and goals of your employees. By being aware of what they’d like to achieve, you can give them more responsibility and provide training so they can work their way to their dream position.

As a manager, you can keep them accountable and motivated to achieve their best and guide them on their career journey. You want your team to know that you’re invested in their career development and want to see them achieve greatness.

What do you write in an employee performance review report?

Your employee performance review report should essentially encompass everything you’ve discussed during the session, for easy reference in the future.

We’d recommend the following structure:

• Review the employee’s job description
• Clearly state how their goals and performance are measured
• Recognise all their achievements thus far, and strengths
• Identify areas for improvement
• Self-evaluation discussion
• Actionable steps for career development and goals
• Feedback on overall performance
• Recommendation (pay raise, promotion, etc if applicable)

Best practices when providing constructive feedback

Giving feedback to your employees is an incredibly powerful tool. It can help your team achieve more and inspire them to innovate. It also improves communication, builds trust and helps you get the most out of your team.

According to PWC, nearly 60% of survey respondents reported that they would like feedback on a daily or weekly basis — a number that increased to 72% for employees under age 30.

If you want to ensure you’re giving constructive feedback, here are some tips:

1. Do it during 1:1 meetings

Giving someone constructive feedback in front of others can make them feel uncomfortable, embarrassed, and also undermine their confidence. It can also make them resentful and defensive if they feel that it was uncalled for or given out of the blue.

1:1 meetings on the other hand, provide a safe space for managers and their direct reports to build trust and strong relationships whilst having honest and open conversations. It provides the perfect opportunity for managers to give constructive feedback privately in a more informal and relaxed setting, so employees will see it in a more positive light.

Need some guidance on what to cover during your 1:1 meeting? We’ve got a handy template right here.

2. Be mindful of your tone and delivery

Even if you’re giving your direct report valuable feedback in a private setting, your tone and delivery is crucial. Lead the conversation by first pointing out what they are doing well, so they have a clear idea of what your expectations are. Keep the conversation focused on their work performance and how you’re keen to help them continue developing those skills.

For areas where you find them lacking, provide specific examples to demonstrate how it’s hurting their performance, and provide steps for actions to be taken. A great way to do this is utilising the SBI model — Situation, Behaviour, and Impact. This model can be used in peer-to-peer feedback as well. An example would be:

Situation: When you presented your proposal to our client…

Behaviour: …you presented everything succinctly. However, I observed that you did not listen to the client when they interjected, and you spoke over their comments instead of acknowledging their concerns.

Impact: I observed our client shaking their head with displeasure. This means that they did not walk away with a good experience, and we did not close the deal as a result.

3. Work on solutions together

Now that you’ve explained the situation, the behaviour they’ve shown, and the impact it has caused to the business — what’s next?

Give your employee the chance to first respond to your feedback, so you can better understand their perspective and they can also address the situation properly by explaining their rationale for behaving the way they did.

Once that’s done, provide them with suggestions or steps they can take to improve. Ask them how they feel about it, and whether they are open to taking those actionable steps. It’s important to establish that there are no hard feelings involved — your main goal is their personal and professional development.

You should also emphasise your willingness to help them, and ask them if they require any specific support from you in regards to this. If they feel that you’ve been lacking in any way as a manager that could have contributed to this, it’s also crucial for you to be receptive to receiving feedback yourself.

What happens after a performance review?

After the performance review has been completed, you should encourage your team to develop a plan for their short and long term career goals. Split the plan out into the next 3, 6 and 12 months, and write each goal down. You should also schedule these meetings into your calendar at these time breaks, to ensure you both stay accountable and regularly track progress.

Focus on SMART goal setting: (Specific, Measurable, Attainable, Relevant, Timely).

For more tips on performance reviews, download our comprehensive performance review guide.

Discover a better way to conduct your performance reviews

If you’re looking for an all-in-one people management platform to help manage your performance reviews, Employment Hero can help. Say goodbye to paper-based systems, and hello to digital performance reviews instead.

Performance reviews don’t have to be a dreaded and painful process for all involved. When you use online performance review systems, managers can keep a running log of notes on an employee throughout the year. This helps paint a complete picture about the individual’s performance over time — not just the immediate past, as it tends to be the case with paper-based reviews.

It also helps to increase goal visibility by automating the areas around creating, monitoring and measuring performance against corporate goals. Managers can ensure that individual goals are pinned to company-wide objectives, and easily stay in touch with an employee’s progress during every phase of goal completion.

Automating performance reviews will undoubtedly save significant amounts of time across the business and free managers from all the tedious paperwork. Notifications to managers are also automated, which eliminates the hassle of chasing down managers to complete feedback forms.

With an online system, everyone can easily log into the system when it’s convenient for them, and workflows ensure that performance review phases are completed in the right order.

Keen to find out more? Speak to one of our business specialists today to learn more about how Employment Hero could transform your business.

Download our template now.