Employer Advice on How to Conduct an Effective Performance Review

  • Performance & Appraisals
Employer Advice on How to Conduct an Effective Performance Review
Kiljon Shukullari

Kiljon Shukullari, HR Advisory Manager

(Last updated )

Like most small business owners, you may be operating without a human resources team. If this is the case, you’re also likely handling employee matters on your own, which can put you in a tough spot when it comes to prioritizing.

This is where an annual performance review becomes essential to making employee management as efficient as possible. More than this, there are three areas of employee management where performance reviews support your business:

  • Overall performance
  • Employee engagement
  • Retention

What are the features of an effective performance review?

An effective performance review means that you are providing valuable feedback and working with your employees to:

  • Go over results, whether positive or negative
  • Set goals and reasonable targets
  • Outline priorities and define work plans
  • Manage performance expectations
  • Discuss new opportunities for growth

It’s important to think about how you can address these points as you go through the evaluation process.

How do I conduct an effective performance review?

When it comes to conducting performance reviews, there are five steps we recommend:

Establish a performance management system

Schedule an annual check-in and adopt a structured process that is consistent for all employees.

Be transparent

Communicate openly about the evaluation process. Make sure your staff knows what to expect. This will help them prepare accordingly.

Hold an effective meeting

Prepare an agenda for the meeting. It should cover:

  • The employee’s key performance indicators
  • Their success in meeting the said KPIs
  • Areas where the employee has performed well
  • Areas where they need to improve
  • Your positive feedback balanced with constructive criticism
  • Support and suggestions for improvement
  • Your employee’s career goals. Help them chalk out a plan to achieve these.

Get it in writing

Keep a record of the conversation to revisit later for check-ins, as well as for disciplinary or promotion purposes.

Follow-up often

As an employer, you can shape the employee experience by checking in regularly, asking the right questions, and following up on your conversations.

Check in with your employees when you can. You can do so either through one-on-one meetings or when they successfully meet their goals and targets. This way, you are holding them accountable for their performance and engaging with them constantly.

Do you have questions related to HR and employee management?

Our experts can help you develop company policies as well as with any other HR, health and safety, or employment advice you need. See how we have helped other small and medium businesses get their business compliant with provincial legislation.

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