Best Practices for Conducting Employee Reviews

Performance reviews are a necessity for most companies—that is, if they expect their employees to get better at their jobs. But while they might be necessary, it doesn’t mean they are always conducted correctly.

A good employee review is one that focuses on improving performance and offers employees constructive feedback they can use to grow both personally and professionally. When a performance review is done incorrectly, it can actually make an employee recoil, decrease their productivity, and make them feel unappreciated. In other words, conducting employee reviews can either be morale boosters or morale killers.

Why Should You Conduct Employee Reviews?

Employee reviews are a key component of doing business. Essentially, when done right, they can improve employee performance and even protect your company from liability issues down the road. Employee reviews also:

• Prevent any appearance of discrimination or favoritism


• Give management a chance to assess staff, adjust employee and hiring needs, and identify strengths and weaknesses


• Provide employees with the feedback they need (both positive and negative)


• Give employees an opportunity to share their own feelings, ideas, and opinions

Uniformity is Key

It doesn’t matter how big you are, how many employees you have, or how high in the business certain employees have climbed; the goals of your employee reviews should be uniform across all fronts. They should be used to communicate with your employees about what they are doing right, what they could improve on, and the goals you have for both them and the business going forward. Ultimately, it’s important to provide thorough employee assessments, and make sure they’re fulfilling all of the duties of their job. Whatever you do, remember that your feedback needs to be supportive and positive. Performance reviews are about improvement, not punishment.

You should conduct employee reviews for all employees at the same time—whether it be on a specific date (such as August 1^st of every year) or at set benchmarks (such as six months into the job). Conducting employee reviews on a schedule can also protect your business from any claims of discrimination or favoritism. In addition to regularly scheduled reviews, it’s also important to provide ongoing feedback so there are no surprises when it’s time for their annual review.

Avoid Negativity

Even if you need to communicate negative feedback, there is a right and a wrong way to go about expressing it. Negative messages create a negative review experience, which will be counterproductive in motivating your employees to get better. Deliver negative issues in a positive light and provide your employee with a solution. For example, if you notice your employee is showing up to work late, consider talking to him about his schedule, discovering the reasons he’s late, and possibly adjusting his schedule.

Keep it Private

Only management personnel should be privy to what is included in an employee’s performance review. They should never be shared, published, or easily accessed by other employees in your business.

Set Benchmarks

A lot of companies haphazardly conduct employee reviews, and avoid following a set benchmark schedule. Set benchmarks long before employees are even hired to fill a position, which includes defining goals for the position and creating an ideal employee profile. The position should also be able to grow with an employee’s personal and professional development.

Employee reviews—when done right—are powerful tools for both your business and your staff. And beyond just helping employees get better at their jobs, they can also help prevent turnover. Learn more about conducting employee reviews and reducing turnover by picking up your copy of Practical Tools to Manage Costly Employee Turnover today.

Best Practices for Conducting Employee Reviews