Its not mandatory to conduct performance reviews in swings, but it does look like fun.(c) Bewakoof via Unsplash
As this year comes to an end, you will probably be both giving and receiving those dreaded annual performance reviews. Is it an exaggeration to say that everybody hates performance reviews?
In most cases the reviews are poor and ineffective, and in many cases, they don’t happen at all. After almost three decades advising senior executives, I continue to be astonished by how many senior-level managers tell me “Actually, I’ve never gotten a performance review from my boss.”
Bosses surely know that performance reviews are necessary not only for the company, but for the professional development of their direct reports. Furthermore, managers usually know exactly what their direct reports need to hear to help hone their performance. However, the formal feedback process is often a mind-numbing set of dated and bureaucratic forms and templates that mostly get in the way of giving constructive feedback.
And when it comes time to deliver that feedback many managers lose their nerve and avoid saying what really needs to be said. Oddly enough, it is often the overconfident boss who balks when he has to give constructive feedback. Managers today are not trained to give constructive feedback (or have been poorly trained through bad experiences receiving performance reviews as employees) and are handicapped by company cultures that are often not feedback-positive. Finally, and rather sadly, in many cases “feedback” is given without the best intentions. (Criticism, it should be noted, is not feedback.) MORE FOR YOU
Most employees don’t look forward to performance reviews either. We’ve all had poor ones in the past, and it can be painful to sit in your boss’s office while she awkwardly tells you where you’ve missed the mark, even if it’s bookended by neutral or even positive feedback. Worst of all, too often the year-end performance feedback is news to the recipient, who is likely thinking “I wish you had brought this up sooner – I could have fixed it.” The fact that these reviews can impact compensation and/or promotions makes it difficult to absorb and process feedback effectively in real time. (How many times have you sat through a performance review only to leave numb and later wish that you had asked more questions?)
I admit I’ve become a little obsessive about how to give better feedback. Just ask one of my clients, and she will likely nod and say, “Ah, yes, Mark and his ‘four questions’!” I’m obsessed with constructive feedback because I know from decades of experience that feedback is absolutely critical to develop people, create positive execution loops, enhance trust, and drive performance. And in spite of our aversion to giving and getting feedback, I believe it’s not difficult to get much better at doing it.
Performance reviews can be dreaded by managers and employees alike. However, done right, they can be incredibly valuable for improving employee performance and engagement. In this comprehensive guide, we’ll cover everything you need to know to conduct effective performance reviews.
What are Performance Reviews?
A performance review is a formal evaluation of an employee’s job performance and overall contribution to the company over a certain period of time. It provides the opportunity for managers to give feedback, praise accomplishments identify areas for improvement set goals, and determine development needs.
Performance reviews are typically conducted annually, but can be done more frequently, like every 6 months The review period covers the time since the employee’s last review
Why Performance Reviews are Important
Regular performance reviews provide many benefits for both managers and employees
- Provides a formal record of performance for compensation reviews and promotion decisions.
- Identifies areas where employees are excelling or could improve.
- Encourages open communication between managers and direct reports.
- Aligns individual goals with company objectives.
- Motivates employees by celebrating wins and providing constructive feedback.
- Determines training and development opportunities.
Bottom line: Effective performance reviews lead to improved employee performance, engagement, and retention.
How to Prepare for Performance Reviews
Conducting quality performance reviews requires advance preparation. Here are some tips:
Set Expectations Upfront
At the start of each review period, clearly set expectations for what success looks like. Define goals, responsibilities, and metrics employees will be evaluated on. This provides clarity on what needs to be accomplished.
Maintain Ongoing Feedback
Don’t wait for the review to give feedback. This should be an ongoing process throughout the year. Praise good work frequently and address problems immediately.
Review Goals and Metrics
Gather data on metrics you’ll reference in the review. Evaluate achievement on past goals set. This provides tangible examples for evaluation.
Get Input from Others
Speak with the employee’s coworkers, stakeholders, and your own manager to get insights you may lack from day-to-day interaction. But keep these conversations confidential.
Have Employees Self-Assess
Ask employees to complete a self-review ahead of time. This allows them to reflect honestly on their own performance and prepares them for the discussion.
Remove Biases
We all have unconscious biases. Before writing reviews, check yourself for biases based on gender, race, age, tenure, personality, etc. Rely on facts, not feelings.
With preparation, you’ll be equipped to conduct more effective, evidence-based reviews.
How to Conduct Performance Reviews
The review meeting itself is the pinnacle of the process. Follow these best practices:
Set a Positive Tone
Frame the meeting as a positive opportunity for growth and communication. This sets the tone for an open, constructive discussion.
Discuss Self-Assessment
Have the employee share their self-review first. This allows them to voice their own perspective and feel heard.
Balance Positive and Constructive Feedback
Acknowledge areas they excel in, not just weaknesses. But don’t avoid difficult feedback. Be candid about where they must improve and the impact it has.
Cite Concrete Examples
Don’t rely on general impressions. Provide specific examples that reinforce your assessment proactively gathered. This adds credibility.
Let Employees Speak
Don’t dominate the meeting one-way. Provide opportunities for the employee to respond to feedback, ask clarifying questions, and share their perspective.
Set Goals Collaboratively
Involve employees in setting their goals for the next review cycle. Collaboration leads to greater buy-in and commitment.
End on a Positive Note
Reinforce your confidence in their capabilities, your support as their manager, and your enthusiasm about their growth potential.
With the right communication approach, you can make performance reviews constructive for all.
What to Include in Performance Reviews
Well-structured documentation is key for performance reviews. Here are important elements to include:
Evaluation Summary
Provide an overview summarizing the employee’s major accomplishments, strengths, areas for improvement, and overall performance rating for the review period.
Scoring
Evaluate performance on core competencies using a numeric rating scale, like 1-5. This quantifies assessments for comparison. Include descriptions of each numeric rating.
Goal Achievement
Review each goal set last review and objectively rate achievement. Provide examples demonstrating outcomes.
Strengths
Highlight key strengths exhibited and how they contributed value. This motivates continuance of desired behaviors.
Areas for Improvement
Note skills, behaviors or knowledge needing development. Explain the business impact and how addressing these will lead to greater success. Offer concrete steps to guide improvement.
Employee Feedback
Summarize the employee’s self-assessment feedback and input during the meeting. Capture their perspective.
Future Goals
Define key performance goals and development goals for the next review cycle. Collaborate here.
Overall Commentary
Provide additional context around the performance highlights and ratings. Share your overarching perspective on their performance and potential.
Signatures
Have the manager, employee, and any witnesses sign the review to formalize it.
Supporting Documentation
Attach any documents that support assessment, like goal trackers, peer feedback, etc.
Thorough documentation provides helpful reference until the next review cycle.
Performance Review Rating Scales
To standardize assessments across the organization, utilize a rating scale. Some popular options:
Numeric Scales
Rate performance on a numeric scale, like 1-5. This quantifies the evaluation for easy comparison. For example:
- 5 – Exceptional
- 4 – Exceeds Expectations
- 3 – Meets Expectations
- 2 – Needs Improvement
- 1 – Unacceptable
Graphic Scales
Use graphics like stars, circles or scales demonstrating gradations from poor to excellent performance. Visuals can resonate better than numbers for some.
Descriptive Scales
Rate employees on descriptive scale like:
- Exceptional
- Exceeds Expectations
- Meets Expectations
- Needs Improvement
- Unsatisfactory
Describe what each level entails.
Choose a rating scale that aligns with your organizational culture and needs.
Performance Review Examples
Review examples help managers understand what effective reviews include. Here are excerpts from two sample reviews:
Positive Review Example:
Sarah exceeded expectations this review period. She led her team to beat revenue goals by 15% through creative marketing campaigns that generated significant buzz. Her campaigns were executed flawlessly and she effectively managed collaborations across multiple departments. Sarah excels at developing novel strategies and is always seeking new ways to push boundaries. She deserves much credit for the success of the product launch. Sarah is eager to take on more responsibility and I’m confident she has the capabilities to lead an expanded team. Going forward, I would like to see Sarah focus on delegating more tactical execution to develop leadership skills. I highly encourage Sarah to pursue management opportunities. With her visionary thinking and execution capabilities, she has tremendous potential for advancement.
Constructive Review Example:
This review period did not meet expectations for Chris. He missed two client deadlines which put key accounts at risk. Chris delivers technically sound work but struggles with time management. He tends to get lost in details and lose sight of deadlines. These missed deadlines caused clients to express dissatisfaction. Timeliness is essential in our industry. Going forward, Chris needs to improve prioritization, delegation, and communication when he is feeling over capacity. I want to see Chris leverage support from team members rather than trying to do everything himself. Let’s meet bi-weekly over the next quarter to track progress on utilizing time management tools and meeting project milestones. With some adjustments, I believe Chris can get back on track to meet expectations.
After Performance Reviews: Following Up
The work doesn’t stop after the review meeting. Be sure to follow up in these ways:
Share Final Documentation
Send the employee a copy of the final performance review for their records. Follow any company protocols on getting signatures and storing reviews.
Track Progress on Goals
Check in regularly on progress towards growth goals and improvement areas. Provide coaching and support to facilitate achievement.
Recognize Good Performance
Notice and praise instances where the employee demonstrates behaviors you want to reinforce. This motivates continuance.
Start Preparing for Next Review
Note examples throughout the performance period to reference in the next review. Set reminders to solicit peer feedback and prepare self-assessments again.
Performance management is an ongoing process, not just an annual event. Follow through after reviews to maximize their impact.
Performance Review Tips for Managers
Beyond the fundamentals covered, here are some additional tips for managers:
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Focus on the future – The purpose is to improve future performance, not dissect the past.
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Listen – Let employees speak without interruptions. Hear them out.
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Be specific – Vague feedback is unhelpful. Provide concrete examples.
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Own your feedback – Use “I” language rather than blaming
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What didn’t go as well as you wanted this year?
Manager’s objective: Identify weaknesses and growth opportunities with a focus on performance improvement. Introduce feedback on blind spots in a way that will be well-received. (Where there are real performance deficiencies, try to get the recipient of the feedback to call them out and request coaching.)
Probing questions might include:
- What can you learn from?
- What would you have done differently knowing what you know now?
- Where and how can you improve yourself?
Looking ahead to next year, what are your most important goals or “Big Rocks”?
Manager’s objective: Ensure the direct report is focusing his efforts on the right priorities. Coach on effective execution.
Probing questions might include:
- Why did you choose those goals rather than others?
- How will you measure your results?
- What’s your plan or roadmap to execute?
- Who do you need to engage and collaborate with to be successful?
How to Conduct a Performance Review When You’re a Manager or Leader
How do you prepare for a performance review?
After covering past performance metrics, focus the bulk of the review on setting goals or creating an action plan for overcoming challenges. Prepare 1-2 weeks in advance: You should carefully plan the performance review meeting and pre-prepare, so both parties have time to reflect. Be sure to send out the employee evaluation ahead of time.
How to conduct an effective performance review?
As a manager, remember these tips for conducting an effective performance review: Check-in regularly throughout the year: There shouldn’t be any big surprises during performance evaluations. Be sure that you’re periodically checking in with employees on a weekly or monthly basis.
How can performance reviews improve employee performance?
Performance reviews can help employees re-focus workload and motivation according to strengths and opportunities for improvement. Consider how frequently you conduct these evaluations. Employees might prefer an annual formal evaluation with more frequent informal assessments, like a monthly “check-in,” to let them know how they’re doing.
How do you end a performance review?
End the performance review on a positive note. Your review should end with mutual understanding and respect. You don’t want your employee to feel like they’re in the dark going forward. Instead, equip them with achievable business goals, a sense of optimism, and an employee performance plan moving forward.
