The Truth About Annual Performance Reviews
- Daniel Tyrrell
- Feb 2
- 3 min read
Updated: Mar 27
By: Danielle Giannone
Performance reviews can be an extremely valuable tool to increase the overall performance of your organization. If used correctly, performance evaluations will let your employees know if they are performing above, below or at expectations. The assessment should also show employees the areas they should focus on to improve their performance so they can immediately take action to improve.
The Truth About Annual Performance Reviews
Sadly, many managers rush through this process or just go through the motions of completing performance reviews at the end of the year, not using them as the valuable tool they can be. Even more concerning is that some managers use it not as an objective tool based on goals but as a subjective tool to rate individuals they consider promotable more highly. A subjective performance review allows managers to promote people they like, who are similar to them, or who don't rock the boat. In other words, subjective reviews lead to biased and inequitable practices.
Top 3 Ways to Create Equitable Performance Evaluations Across Your Organization
Ensure all employees have SMART goals and develop a rubric outlining the criteria for assessing an employee's performance.
Require managers to include specific examples for each area being evaluated in the performance review.
Involve several people in the evaluation process of an individual's performance.
How Managers Can Leverage Annual Performance Reviews to Improve Performance
Performance assessments should never come as a surprise to your employees. If employees feel blindsided or surprised by how you are rating them, you should take time to look at how effective your one-on-one meetings are.
Have you been consistently open and direct about the employee’s performance? Have you been giving feedback in the moment whether positive or constructive?
The key to helping an employee improve their performance or to ensure they continue to do the things they do well, is to provide specific examples of the behaviors you have observed. Delaying this feedback until a review means missing out on valuable time to help individuals grow, as the more time that passes from the examples mentioned in the review, the less effective it will be, and/or they may not remember the moment.
As a manager, the #1 most important lever you have toward achieving your goals is the performance of your team. The more you can help employees improve, the better everyone does.
How Managers Can Drive Performance Throughout The Year
Set clear SMART goals for every individual tied to team and organizational goals and include employees in the goal-setting process to get maximum buy-in and commitment.
Set milestones for goals to review during weekly check-ins to ensure they are on track.
Give feedback in the moment when you observe behaviors that don’t support their success or the team’s success and/or when you observe behaviors you want to continue! Take notes of these conversations throughout the year to refer to when writing the performance review.
Communicate clearly and consistently how the team is doing toward accomplishing goals.
Allocate time in team meetings for each member to share their progress towards goals, what's working, and what areas they may need help with.
For more insights and tools on how to be a more effective manager read our related articles: How To Set Effective Goals & Why Are Goals So Hard To Accomplish?
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