How to Improve Performance Reviews as a Manager

Employee reviews give individuals the opportunity to understand expectations, standards, and performance better. They strengthen the relationship between the manager and employee and give 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 send a message to the employee that you care about their performance as well as them as a person.

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 a new employee, they should know what they need to achieve to be deemed 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 results, which are defined.

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

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 targets for sales, 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 by seeing things from someone else’s perspective, whereas someone with great 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 about 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 both 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 a single annual meeting. 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, which can have long-term effects on your professional relationship.

Addressing challenges and concerns is important; however, you should always approach these topics with constructive feedback and a plan of action on how you are going 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 on how you can work together to achieve more, and assess what support they need to get there.

Focus on the future instead of dwelling on the past

One reason why traditional performance reviews are unpleasant is that 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 goal progress 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 adapting 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 get to know 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 depending on their experience and seniority.  

People may also need different levels of praise and feedback, some of which 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 truly invested in understanding their contributions.

Making reviews personal also requires a focus on personal 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 that 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 making these elements part of the review process, you’ll make each session feel like a valuable and tailored experience for your team member.

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.