How Often to Conduct Reviews

A performance review provides an employee with a periodic evaluation of how well the work being performed measures up to your expectations. A performance review is different from a salary review, which often reflects factors that don't relate to the employee’s performance. While an annual salary review may be sufficient, you should conduct performance reviews more often.

Consider a performance review to be a special type of constructive feedback. These periodic appraisals give you an opportunity to establish goals for each employee. Periodic reviews also provide an opportunity to get input from an employee’s coworkers regarding their evaluation of the employee’s performance. They also demonstrate that you've made a long-term commitment to your employees and that you don't consider them expendable.

Tip

Remember that some employees will exceed your expectations and this is an opportunity to let them know that their good work isn't going unnoticed.
The easiest way to do this is to take some time every six months or so, but at least once a year, to meet with each employee and evaluate his or her work. During the meeting you should go over your expectations for the job the employee holds, and discuss how he or she is meeting these goals. If the employee is not meeting expectations, you should make clear exactly what he or she needs to do to correct performance, and give a time limit for improvement. If the employee needs further instruction or job training, explain how this can be achieved. Finally, write a memo for the employee's file describing your conversation, and have him or her sign and date it.

Constructive feedback. Giving successful feedback requires that you:

have explicit, clear expectations of what should occur
know exactly what behavior and performance occurred and what must be done to resolve or improve the situation
have honest, candid, and direct face-to-face communication
know why the business requires a change in behavior
know how you will monitor the work situation to ensure that the behavior change occurs

Some things stand in the way of effective feedback. Some employment atmospheres are not open, and lack of candor inhibits true communication, especially about difficult issues. Remember, too, that criticism hurts. Avoid these pitfalls to make your constructive feedback most effective:

Procrastination makes the situation worse. Behavior in the workplace doesn't often change and a problem usually gets worse. Waiting until a situation is desperate is unfair, wasteful, and counterproductive. It also makes it harder for you to keep your cool when the problem is finally addressed.
Conversation may seem artificial. Initially it may seem artificial to follow a script. However, failure to act has more dangerous consequences than the perception that it is difficult to give constructive feedback. Try to be as conversational and natural as possible, but don't make it your primary focus. You're there to change behavior.
Timing the conversation is tricky. Constant, regular communication is the ideal, and it is true that immediate feedback is most effective. But do not initiate any conversation if your own emotional state affects your objectivity or knowledge of the situation. Avoid feedback conversations if it is particularly busy, if privacy can't be guaranteed, if either party is tired or upset, or if it’s too late for the conversation to have a meaningful impact.
Criticism may seem personal and mean-spirited. Attacking the individual is beyond the scope of a business conversation. Besides that, it almost guarantees that the desired behavior change will not occur permanently and leaves you open to legitimate criticism. Never criticize the individual personally, but rather focus on the actual behavior.
Anger and defensive behavior are unpleasant, especially when directed at you. When challenged, the best strategy is respectful and active listening. Let the other person vent. As difficult as it may be to have employees verbally attack you, the process of getting it off their chest may actually help them be less resistant to change and, by listening carefully, you may learn something that you need to know.
Failing to ask the right questions can be costly. For the constructive feedback to be effective, it must be comprehensive. You must probe to get all of the facts and the perceptions. Have a list in front of you to ensure that you cover all of the issues.
Having hidden agendas is destructive. Honest and open dialogue doesn't allow for either party to play games or use the situation to further another purpose.
Trying to do too much in one meeting isn't a good idea. Focus on one issue at a time. Addressing many concerns may overwhelm the employee and may be too much to adequately address and resolve in one conversation.
Failing to plan and rehearse can be costly. You can practice and learn to give feedback well. You must practice to improve your skill level until the complex process of putting together all of this material becomes second nature.
Failing to document the conversation and your actions is not smart. Since there is always the possibility that the conversation may be misconstrued or may form the basis for disciplinary action at a point in the future, you must document that it occurred. Additionally, the documentation makes it easier to follow up in an organized manner.