6 Steps to Make Your Performance Reviews a Success

The annual performance review (APR) has received its share of criticism over the years. Some companies have even completely eliminated it. However, as a manager whose love language is not verbal praise, the annual performance review has been an important tool for me to give employees structured feedback, including praise. It’s also a tool that can move company goals and values forward and set standards for pay conversations. When implemented correctly, the APR can be successful, as long as there is purpose behind it.

Here are 6 steps I believe must happen to make the APR successful:

1. Understand the purpose 

Decide the WHY behind doing a review. Some examples could include:

• To reinforce company values and the way employee’s work ties in

• To determine training, promotions, and pay increases

• To aid in succession planning and career pathing

• To track employee growth

There are so many reasons you may want to do APRs and you don’t have to pick just one.

2. Decide who is involved 

This is especially important if performance reviews have any bearing on pay increases. If a company is large enough to have a comp team, they should weigh in. It can also be helpful for leadership to have input, particularly if there are specific limits when salaries are increased for merit or promotion. 

3. Company wide standards

Will there be 360 feedback? Will employees have to write a self-review? Will it only be managers who write reviews? These are the questions that must be answered in advance of the roll out. Consider specific guidelines on how and when employees will be evaluated. Is there a process that everyone will follow, regardless of title/level within the company? Communicate these guidelines in advance of the start, so employees can start thinking about their own development, or that of their direct reports. 

4. Train managers 

Human Resources should help train managers on set standards for the review. Setting company standards is futile unless managers are properly trained on how to complete and deliver the APR. 

5. Managers take the lead 

When an employee is required to ask for a review, this results in a system that is inequitable, inconsistent, and lacking in purpose. Take the lead in not only the performance conversation, but proactively asking about career development throughout the year. Have weekly one-on-ones to keep employees engaged and motivated to meet and exceed their goals. Employees want to know they’re being invested in, and this is one way managers can retain great talent. 

6. Continuous, regular feedback 

The annual performance review should never be the one time a year an employee receives feedback. Managers must be trained to give feedback on the spot as well as have regular check-ins (like a one on one) with their employees. In addition, I believe a formal review is even more effective—and less time consuming—when it actually happens two times a year instead of just one.

Building out a process for performance reviews that is people and purpose centric is imperative. The process should align with your company mission and reinforce values of equity and inclusion. Taking these steps can take your APRs from a “have to to do” to a beneficial tool everyone looks forward to using.