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 
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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 
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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. 
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See how we have helped other small and medium businesses
 get their business compliant with provincial legislation.

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