How Best to Undergo a Performance Review with an Employee

Performance reviews are a key component of employee development, engagement, and organisational success. When approached correctly, these reviews offer an invaluable opportunity to align expectations, provide constructive feedback, set goals, and strengthen the employer-employee relationship. Conversely, when mishandled, they can lead to demotivation, confusion, and even attrition.

This article outlines best practices for undergoing a performance review with an employee, encompassing preparation, structure, communication, and follow-through. Whether you are conducting annual appraisals, quarterly check-ins, or mid-year reviews, the principles outlined here are universally applicable and tailored to support a productive, professional dialogue.

1. Purpose and Objectives of a Performance Review

Understanding the objectives behind a performance review is the foundational step in conducting one effectively. A performance review serves several purposes:

• Assessment of Performance: Evaluating the employee’s achievements, challenges, and contributions.
• Feedback and Development: Offering insights into strengths and areas for improvement.
• Alignment with Organisational Goals: Ensuring individual performance supports wider business objectives.
• Career Development: Discussing aspirations, training opportunities, and potential career paths.
• Recognition and Motivation: Acknowledging accomplishments to reinforce engagement and morale.

Without a clear understanding of these objectives, the process risks becoming a box-ticking exercise rather than a meaningful developmental conversation.

2. Preparation: Setting the Stage for Success

Thorough preparation is crucial. A poorly prepared manager can undermine the credibility and effectiveness of the review process. Key preparation steps include:

a. Reviewing Performance Data

This includes:

• Reviewing KPIs, OKRs, or other performance metrics.
• Collecting 360-degree feedback from colleagues or clients.
• Analysing outputs relative to agreed goals or job descriptions.
• Assessing previous performance reviews and progress made.

b. Employee Self-Assessment

Encouraging the employee to complete a self-assessment prior to the meeting fosters reflection and accountability. It provides insight into how the individual perceives their own contributions and highlights any disparities in perception that may need addressing.

c. Structuring the Review

Develop a structured agenda that includes:

• A recap of key achievements and challenges.
• Discussion points on each major responsibility or goal.
• Time allocated for the employee to share their views.
• Space to explore development needs and future plans.

d. Setting a Professional Tone

Choose an appropriate setting—ideally private, comfortable, and free from distractions. Schedule the meeting in advance, allowing adequate time to have an unhurried, thoughtful discussion.

3. Conducting the Review: Techniques for a Constructive Dialogue

The way a performance review is conducted greatly influences its impact. The aim should be to foster an open, honest, and forward-looking conversation.

a. Begin with Context and Positivity

Start by restating the purpose of the review and expressing appreciation for the employee’s work. Framing the conversation positively sets the tone for a productive session and reassures the employee that the meeting is not solely about criticism.

b. Use Balanced and Evidence-Based Feedback

Feedback should be specific, objective, and balanced:

• Positive Reinforcement: Highlight accomplishments and positive behaviours with examples. This boosts morale and encourages repetition of good practices.
• Constructive Feedback: Address areas for improvement with tact, focusing on behaviours rather than personality traits. Use evidence to support your observations and avoid generalisations.

The “SBI” model (Situation–Behaviour–Impact) is particularly effective:

“In the client presentation last week (Situation), you articulated the solution clearly and responded to questions confidently (Behaviour), which reassured the client and helped secure the deal (Impact).”

c. Encourage Two-Way Communication

Invite the employee to share their perspective at every stage. Use open-ended questions such as:

• “How do you feel about your performance this quarter?”
• “What challenges have you faced?”
• “What support could help you succeed?”

Active listening, empathy, and non-verbal cues (e.g., eye contact, nodding) reinforce that their input is valued.

d. Discuss Development and Career Goals

Effective reviews explore not just past performance but also future potential. Identify skills gaps and offer guidance on training, mentoring, or projects that support career growth. Enquire about the employee’s aspirations and collaborate on realistic development plans.

e. Set SMART Goals

Set clear and achievable goals using the SMART framework:

• Specific
• Measurable
• Achievable
• Relevant
• Time-bound

This creates a shared understanding of expectations and provides a benchmark for future performance evaluations.

4. Handling Challenging Conversations

Some reviews involve sensitive topics, such as underperformance, behavioural issues, or interpersonal conflicts. These discussions require delicacy and professionalism.

a. Remain Objective and Respectful

Focus on facts, avoid emotional language, and steer clear of personal judgments. Maintain a calm and composed demeanour even if the employee becomes defensive.

b. Clarify Expectations and Consequences

If improvement is required, clearly articulate what needs to change, by when, and the consequences of failing to meet expectations. This should be documented in a performance improvement plan if necessary.

c. Provide Support

Ensure the employee knows that support is available. Offer access to coaching, mentoring, or additional resources. Reinforce that the organisation is invested in their success, not merely evaluating them for punitive purposes.

5. Documenting the Review

Accurate documentation of the review is essential for accountability, legal compliance, and tracking progress. A written summary should include:

• Key discussion points.
• Commendations and concerns.
• Agreed goals and timelines.
• Professional development actions.

This should be shared with the employee, who should have the opportunity to review and confirm its accuracy. Digital platforms such as performance management software can facilitate this process.

6. Post-Review Follow-Up and Continuity

A common mistake is to treat performance reviews as annual or biannual events. For reviews to be effective, they must be part of a continuous performance management cycle.

a. Regular Check-Ins

Schedule regular one-to-one meetings to revisit goals, offer feedback, and adjust plans as circumstances evolve. This reinforces a culture of accountability and support.

b. Monitor Progress and Offer Feedback

Track progress against the goals set during the review. Provide feedback consistently—both positive and corrective—so that employees feel guided and recognised throughout the year.

c. Recognition and Reward

Where performance is strong, consider appropriate rewards—whether through bonuses, promotions, or public recognition. This affirms the value of high performance and sets a benchmark for others.

7. Creating a Culture of Continuous Feedback

The most effective performance reviews occur in organisations where feedback is part of the daily rhythm, not an annual event. Fostering a culture of open, constructive communication ensures that reviews are seen as developmental rather than judgmental.

Leaders and managers should role-model feedback-seeking behaviour, encourage peer recognition, and celebrate learning from setbacks. This cultural shift can dramatically enhance both individual and team performance.

Wrapping Up…

Conducting a performance review with an employee is a multifaceted process that requires thoughtful preparation, empathetic communication, and a focus on continuous improvement. When approached as a collaborative, two-way dialogue, performance reviews can be a strategic tool for enhancing employee engagement, aligning efforts with organisational goals, and unlocking potential across your workforce.

By establishing clear expectations, delivering feedback with clarity and respect, and following through with action, managers can transform performance reviews from administrative formalities into high-impact conversations that drive meaningful growth.

A performance review should not be an isolated event, but part of an ongoing commitment to development, recognition, and success—both for the individual and the organisation as a whole.