A Manager's Guide to Effective Employee Performance Reviews (with Templates)
Employee performance reviews are an integral part of the management process, and when done effectively, they can help you identify areas of improvement for your team members and ultimately improve your organization's overall performance.
Why Employee Performance Reviews Are Important
Employee performance reviews are a crucial aspect of any organization's management process. They allow managers to assess employee performance, identify areas of improvement, and provide feedback to help employees grow professionally. Performance reviews also help to build a stronger relationship between managers and their team members, as they provide an opportunity for open and honest communication.
Employee Performance Review Templates for Google Sheets and Microsoft Excel
Before getting started with all of the tips and best practices for conducting employee performance reviews, get started by downloading one of my Employee Performance Review templates. Simply grab the version you want below!
How to Conduct Effective Employee Performance Reviews
To conduct effective employee performance reviews, follow these steps:
Step 1: Set Clear Goals and Expectations
To ensure that your employees understand what is expected of them, set clear goals and expectations. This includes outlining job responsibilities, performance expectations, and key performance indicators (KPIs). When setting goals and expectations, be specific and ensure that they are achievable.
Step 2: Provide Ongoing Feedback
Providing ongoing feedback throughout the year is crucial for effective performance reviews. Regular check-ins with team members can help to identify potential issues early on and provide an opportunity for course correction.
Step 3: Prepare for the Review
Before conducting the performance review, prepare by reviewing employee performance data and notes from previous check-ins. This will help you to provide specific examples of both positive and negative performance.
Step 4: Conduct the Review
During the performance review, be sure to give specific feedback and examples of areas where the employee excelled and areas where they could improve. Encourage an open dialogue and provide support to help employees improve in areas where they may be struggling.
Step 5: Follow Up
Following up with employees after the review is an important part of the process. Set goals for improvement and ensure that employees have the resources and support they need to achieve them. Regular follow-ups can help to track progress and provide additional feedback.
How to Deliver Positive Performance Evaluation Feedback
Every year, organizations are pushed to become more competitive. Having performance reviews that take place on a yearly basis is one way for businesses to monitor their employees' progress. Technological advances have also made it possible for companies to complete these reviews much easier by providing access online to the forms and reports needed.
Employee performance reviews should be an opportunity for managers to give positive feedback as well as constructive criticism about where an individual has succeeded or struggled throughout the year. It can also help managers make any necessary changes to ensure that goals are being met moving forward.
Here are some things that managers need to consider when giving positive praise during an annual review:
Keep it short: There's nothing worse than having a manager drone on about something you've already heard a million times. Short and sweet is the most effective way to go about it.
Be specific: It's important for managers to be as specific as possible when detailing their positive feedback. This will help ensure that employees can apply what they've learned going forward.
Set a goal: By setting a goal, managers not only provide an opportunity for positive reinforcement, but also help keep employees focused on what needs to get done next year.
Provide motivation: Consider providing employees with some type of cash bonus or award if you're really happy with their performance throughout the year. Not only does this provide further encouragement but it gives something concrete that employees can use to continue building upon their success in the future.
These are all important points that managers should take into consideration when it comes to giving positive feedback to their employees.
One thing to keep in mind is that constructive criticism should not be confused with negative feedback. While both are important tools for forging success, they serve completely separate purposes. Positive praise will encourage employees by keeping them motivated. Negative feedback, on the other hand, helps strengthen performance by identifying areas where improvement needs to be made.
So remember managers: before getting into what your employees did wrong, always start off your reviews with something positive!
How to Deliver Negative Performance Evaluation Feedback
A manager may never enjoy giving negative feedback, but it is an integral part of the job.
The annual review process provides a great opportunity for managers to identify areas that need improvement in their employees and give them clear guidance on how to proceed.
As much as possible, feedback should be aimed at behaviors or actions, not people.
Additionally, it can help to provide specific examples of times when these behaviors were noticed (positive or negative) so the employee knows what they actually do/don't do well in terms of day-to-day work habits or interactions with their colleagues. If there have been several instances where something has happened over time then it's not really feedback, it's just complaining.
Employee reactions to negative feedback also vary by temperament. Some people are more inclined to shut down and stop listening when things get difficult. Others may be more likely to lash out even if they know that person giving the feedback is right. Still others may become overly emotional or defensive. These differences are important for managers to consider when delivering negative feedback so as to avoid triggering a less productive reaction in their employees. While some will manage this better than others, it is important for managers to prepare themselves with strategies on how best to approach these situations without losing control of the conversation.
Evaluation Tips for a Manager Preparing for a Performance Review
Looking at the big picture, annual reviews are a great opportunity for employees to ask questions about performance standards, salary increases or other company-specific concerns. They're also good for setting goals moving forward into the new year.
If you're looking for additional tips, here are some suggestions:
Have an agenda in mind - Reviewing an employee's work can take a while so it's important to go into the meeting with an agenda. Create a list of items you want to cover and be sure to wrap up each one before moving on.
Follow your company's procedures - What's the standard format for this type of meeting? Are you required to go through a set number of slides or topics? Follow your company's policies and procedures to make sure you're on track.
Prepare in advance - Sitting down and going over an individual's work, accomplishments and goals takes time so prepare in advance . Gather materials to support your feedback and keep a list of topics or questions that may come up during the meeting.
Stay focused - Make sure the annual review is a productive conversation . It's easy to go off on tangents but it's more beneficial to stay focused and prioritize what needs to be covered.
Be specific - Use examples from your employee's performance to support your feedback. Specific examples are less subjective than general statements so people can better understand where they stand in relation to their goals and how they can improve in the future.
Take detailed notes - Make sure you don't miss anything important . Write down action steps or details that come up during the meeting so you can follow up on them later.
Be honest - If you don't know the answer to a question or aren't sure how to handle something, be honest . It's important that employees feel comfortable asking questions and having an open dialogue about their performance.
Plan follow up meetings - A year is a long time so it may take more than one meeting to go over everything . Plan time to meet again before the year is up so you can discuss any changes or ways to improve moving forward.
Evaluate how it went - After your meeting, take some time to reflect on how it went . How was the conversation? Were both of you satisfied with the outcome? Make sure you both feel good about the process.
Follow up in writing - Once you've had your annual review, follow up with a written summary . This will help everyone stay on track when moving forward and make it easier to remember what was covered during the meeting.
As an added bonus, here are some sample questions to use for employee evaluations:
What are your greatest strengths?
What is your greatest area of professional development?
What did you accomplish this year that you are most proud of?
How do you think our company can better support your efforts in the future?
Employee Self-Evaluation Tips When Preparing for a Performance Review
Be honest about your strengths, weaknesses, opportunities for improvement and future goals. Similar to an annual review, management should be aware of what you're personally trying to achieve during your time at the company.
Keep your evaluation concise and free of irrelevant information. All feedback should align with the year's performance so focus on specific tasks, projects or accomplishments related to their role in the company.
Be open about how you want to be evaluated. If you have specific tasks, projects or accomplishments that are important to your role, make sure they are included in the evaluation process.
Speak up if there's anything you don't understand or if you feel like there is feedback missing. Don't be afraid to say what you think! It's better to take ownership of an issue early on so it can be addressed sooner rather than later.
Ask for clarification if you're unsure about anything. If there is something that isn't clear, speak up! There's nothing wrong with asking questions or having a conversation to fully understand the annual review process.
Keep track of your accomplishments throughout the year. This will make tracking your progress easier when it comes time to discuss your performance during the annual review.
Think about what you want to achieve next year and how ERS can better support your efforts. Take some time before the meeting to think about your future with the company - this will make it easier for you to determine what direction you want to take in the coming year.
Ask for feedback from your manager on areas where you can improve. This will give you a clear understanding of what needs to be improved in order to achieve your goals.
Tips for Conducting Remote Performance Reviews
Since 2020, a large majority of performance reviews have had to be conducted remotely, thanks for the global pandemic. If you do have to conduct a remote performance evaluation, make sure to use a video conference service so everyone is on the same page. It is much better than just having a phone call conversation. It's also important to use actual websites or tools during your meeting rather than just relying on email for communication.
Consider using free tools like Skype or Google Meet to conduct remote meetings.
Create personal accounts on collaborative tools to use during your meeting. You can post links, documents and files that employees will need for the year-end review. This makes it easier to communicate because everyone is working off of the same page.
Ensure employees have access to required tools before your meeting begins. If you leave them out, there's a chance they won't receive the information in time.
Always have a backup plan in case something goes wrong with your video conference service. There's nothing worse than struggling to communicate during an important meeting!
No Matter What, Don’t Skip Out on Performance Evaluations
Develop a system for open dialogue between managers and their employees so people can ask questions about the annual review process. This is especially important for people who are new to the company as they'll need guidelines on what's expected from them during the year and how they can be recognized for their efforts.
