Performance Reviews That Actually Work

Most performance reviews are a waste of time. Employees dread them, leaders rush through them, and nothing really changes as a result of them. But it doesn’t have to be this way.

Here’s how to conduct performance reviews that actually improve performance.

The Simple 4-Step Process

Step 1: Employee Self-Review

Start every review by asking:

• “What went well this period?”

• “What was challenging?”

• “Where do you want to improve?”

This immediately makes it a conversation. Remember, employees are often harder on themselves than you would be.

Step 2: Share Specific Examples

Give feedback using this simple format:

• What happened: “In the client meeting last Tuesday…”

• What you observed: "you prepared answers for their main concerns…”

• The outcome: “this helped us close the deal faster.”

Always be specific. Instead of “You’re not detail-oriented,” say “I’ve identified three errors in reports this month.” Give them something concrete to work with and always connect it back to why it is important.

Step 3: Pick 1-2 Things to Focus On

Don’t try to fix everything at once. Ask the employee what they most want to work on, then agree on 1-2 specific areas.

For each area, define:

• What good looks like (specific behaviors or outcomes)

• How you’ll help (training, resources, support)

• When you’ll check in (monthly is usually good)

Step 4: Schedule Regular Check-ins

Block time for monthly meetings to discuss progress. Don't wait for the next performance review.

The Follow-Up (This Is Where Change Actually Happens)

The review meeting is just the beginning. Real improvement happens through

regular one-on-one meetings to discuss progress and remove obstacles. Feedback should be provided immediately- Don't wait until the next performance review to address issues or celebrate wins as they happen. If someone is struggling to improve, work to identify the root cause and provide the right level of support they need to be successful.

How to Know It’s Working

Performance reviews are effective when:

• Employees come prepared and engaged

• People actually achieve their development goals

• Performance issues get resolved faster

• Employees start asking for feedback regularly

• Top performers stay

The Bottom Line

Good performance reviews are really just good conversations about work. They’re collaborative, specific, and focused on helping people be successful in their roles.

Stop treating them like an item on your to-do list and start treating them like coaching sessions. Your employees will appreciate this approach and your business will benefit from it.