How to Improve Performance Reviews as a Manager

Employee reviews allow individuals to better understand expectations, standards, and performance. They strengthen the relationship between the manager and employee and provide a chance for both sides to be transparent about what improvements can be made to increase performance and achievement. They help you get to know your employees better so you can identify their weaknesses and strengths, which may not have surfaced in their day-to-day role.

Performance reviews also tell the employee that you care about their performance and them.

Define success first

Understand that each person is different

Don't make performance reviews negative

Focus on the future instead of dwelling on the past

Make reviews personal

Conduct performance reviews regularly

Define success first

Every time you welcome new employees, they should know what they need to achieve to be successful. Start by setting clear expectations about what is expected of them and what they should accomplish. What are you paying them to do, and what value can they add to the business? Success should be rated on whether they produce defined results.

Once everyone knows what success looks like, reviewing their performance based on defined expectations and achievements makes it easier.

Success should directly link to the company’s broader goals and team objectives. Break down what success looks like at each level, whether it’s quarterly sales targets, efficiency metrics for operations, or quality benchmarks for project completions.

Understand that each person is different

Everyone has unique strengths, weaknesses, talents, skills, and motivations. Great managers use those differences to maximize employee performance and potential. Understand that people will also do similar tasks in different ways. For example, someone with high empathy may build strong relationships through excellent listening and seeing things from someone else’s perspective. In contrast, someone with excellent communication skills will create a similar relationship by capturing people’s attention through engaging conversation. Both lead to the same results through different methods.

Take the time to identify what makes a person who they are so you can develop those skills further or provide them with training and development in areas they need improvement.

Success is not just about outcomes but also the skills and behaviours needed to achieve them. Define the critical skills each role requires, such as problem-solving for engineering roles or adaptability for customer-facing roles. For a balanced view, include immediate goals (like quarterly targets) and long-term development goals (such as acquiring new skills or taking on more responsibility). Performance reviews should reflect an ongoing dialogue, not just annual meetings. Regular check-ins can help you and your team stay aligned on success criteria and adapt them as needed.

Don't make performance reviews negative

Many managers approach performance reviews with a long list of harsh critiques, which is why many employees dread them. This promotes unhealthy and unproductive conversation, negatively affecting your professional relationship.

Addressing challenges and concerns is essential; however, you should always approach these topics with constructive feedback and a plan of action to support them to improve. Explain how you think they can improve and evidence of how it will work.

Spend more time discussing strengths and future expectations, as this increases employee engagement. Create a plan to work together to achieve more, and assess what support they need to get there.

Focus on the future instead of dwelling on the past

Traditional performance reviews are unpleasant because they often focus on past mistakes that cannot be changed or fixed, and feedback is given far too late. This can negatively impact people and make them feel like their efforts are overshadowed by a single mistake.

Focus on progress toward goals and how people have overcome mistakes. What are their opportunities for development? What is motivating them? And what do they want to achieve in the future?

Focusing on the future also encourages employees and managers to adapt goals as their work priorities change. Setting and adjusting those goals together will help the employee develop more ownership and continually clarify what success looks like. With their manager's help, an employee will also set more realistic, practical goals.

Make reviews personal

Working in a high-performing team is great; however, individuals also want recognition and feedback personally. Get to know your employees so you can make your reviews as personal as possible. Take the time to learn their impact on your business, their strengths, and their weaknesses so you can tailor their feedback and measure their success accurately. Everyone should have different goals, so different measures of success should depend on their experience and seniority.  

People may also need different levels of praise and feedback. Some prefer it personally, whereas others prefer praise more publicly.

People will feel more valued if you make their reviews personal. Reference specific examples of their work and behaviour rather than general statements. For instance, instead of saying, “You did well on Project X,” mention the unique way they approached a challenge or detail a specific instance where they added value. This shows you’re genuinely invested in understanding their contributions.

Making reviews personal also requires a focus on individual goals for the future. Ask about their career goals and how they envision their role evolving. Listen to what excites them and see how you can support their aspirations. This makes the review a two-way conversation and shows you’re invested in their growth. Learn what motivates each team member. If one person is motivated by autonomy, find ways to give them more responsibility; if another values collaboration, set goals that involve teamwork. Personalizing goals to their drivers can increase engagement.

By including these elements in the review process, you’ll make each session feel like a valuable and tailored experience for your team members.

Conduct performance reviews regularly

Performance reviews don’t need to be annual, quarterly, or monthly. They can be as often as you like or need them to be.

New starters may need weekly performance reviews, whereas someone who has been with you for a long time may benefit from bi-monthly reviews. Regular performance reviews improve overall performance, employee engagement, and promotion opportunities and identify training needs.

Most importantly, regular catch-ups and performance reviews strengthen relationships and loyalty.