Review Procedures

You can use the following procedures when dealing with an employee’s performance, whether it is positive or negative:

How often to conduct reviews. Performance reviews provide employees with a periodic evaluation of how well the work being performed measures up to your expectations. Therefore, while an annual salary review may be sufficient, you should conduct performance reviews more often.
Rewarding good employees - salary/promotion. Extra efforts by employees on behalf of your business can be rewarded by promotions and/or increases in compensation. Expressing your appreciation and/or providing some kind of award or reward is appropriate if a promotion or raise isn't possible.
Corrective actions for problem employees. Either coaching or disciplinary action is a proper response for problem employees, depending on the behavior involved.
If the employee disagrees. Whatever form the documentation for disciplinary action takes, allow for employee comments and signature. If the employee disagrees with the action, you have documentation that you participated in this process with the employee.