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How to Conduct an Effective Performance Review

Boost employee engagement and retention with effective performance reviews. Learn how to run productive review meetings that drive growth and business success.

Reading Time: 6 minutes

Posted On 23rd of April, 2025 Adecco

employee and manager discussing performance review

Performance reviews are a critical part of any successful workplace. They help foster communication, improve employee engagement, and contribute to better performance across the team. For HR professionals, managers, and business owners, knowing how to handle performance reviews effectively can make the difference between retaining high-performing employees or dealing with increased turnover. 

This blog will walk you through the key steps to conducting performance reviews that drive growth, align employee goals with company objectives, and ensure long-term success. 

What Is a Performance Review and Why Is It Important? 

A performance review, also known as a performance appraisal or evaluation, is a structured conversation between a manager and an employee to discuss the individual’s overall performance during a specific review period. It is both an assessment of past performance and a tool for future planning. 

Performance reviews are a key part of performance management systems, offering an opportunity for employee development and professional growth. By providing performance feedback and identifying strengths and areas for improvement, these reviews help create a clear understanding of expectations and goals, ultimately driving better performance across the organization. 

Why Performance Reviews Matter 

  • Support Employee Development: By highlighting opportunities for growth and offering actionable feedback, reviews help employees build new skills and competencies. 

  • Enhance Engagement:Employees who feel seen and valued are more likely to stay engaged and productive. 

  • Align with Company Goals: Performance reviews ensure employee efforts contribute to broader business objectives. 

Preparing for the Performance Review Process 

Creating a meaningful review starts with preparation. Here's how to prepare for a productive performance review process.

1. Set a Clear Review Period 

Define the review period (e.g., quarterly, biannual, or annual performance reviews) and communicate timelines in advance to give employees ample time to prepare. 

2. Collect Objective Metrics 

Use measurable data to assess employee performance, including sales metrics, project completion rates, or customer satisfaction scores. This ensures evaluations are unbiased and grounded in reality. 

3. Review Past Performance 

Look at previous reviews, key accomplishments, and any feedback provided during the year. This context helps highlight trends and progress. 

4. Provide a Self-Assessment 

Encourage employees to complete a self-assessment. Templates and structured forms work well to help employees reflect on their own achievements and challenges. 

5. Use Regular Feedback Tools 

Performance evaluations should not come as a surprise. Utilize frequent check-ins and feedback tools throughout the year to keep conversations ongoing. 

Structuring an Effective Performance Review Meeting 

When it comes to conducting the review itself, careful structure and communication are key. 

Create a Comfortable Environment 

Opt for a private, distraction-free setting to ensure the conversation feels safe and professional. 

Focus on Two-Way Conversations 

Effective performance reviews should feel like a dialogue, not a monologue. Allow employees to share their perspectives, challenges, and aspirations. Active listening is essential. 

Address Specific Areas of Performance 

Use real-time examples to illustrate an employee’s good performance or areas for improvement. Be clear and focus on competencies and teamwork where applicable. 

Set Goals and Align with Company Objectives 

Collaboratively set employee goals for the next year, ensuring they align with broader business objectives. This helps employees see their role within the organization’s success.

Giving Constructive Feedback with Specific Examples 

One of the trickiest parts of a performance conversation is delivering feedback. Here’s how to strike the right balance. 

Highlight Both Strengths and Areas of Improvement 

Start by praising good performance and tangible achievements, then transition into areas where improvement is needed. Balance is key to building trust. 

Use Real-Time Examples 

Focus on specific examples from the review period. For instance, instead of saying, “Your communication has been poor,” say, “During the July project rollout, team members noted a lack of updates, which delayed progress.” 

Deliver Feedback Respectfully 

Critique behaviours, not the person. Always frame feedback constructively to encourage growth, not defensiveness. 

Collaboratively Setting an Action Plan for Growth 

The outcome of any performance review should be an actionable plan for professional development. 

Co-Create an Action Plan 

Work together to set measurable goals, whether it’s acquiring new skills, improving communication, or taking on leadership responsibilities. 

Suggest Professional Development Opportunities 

Identify training programs, mentorship opportunities, or additional resources to support employee growth. 

Encourage Continuous Improvement 

Remind employees that improvement is an ongoing process. Regular check-ins can help track progress and ensure goals remain relevant. 

Following Up After the Review 

Performance reviews are not one-and-done conversations. Following up ensures that feedback leads to action. 

Schedule Regular Check-Ins 

Set follow-up meetings to discuss progress against the action plan and address any challenges employees may face. 

Monitor Employee Progress 

Keep track of employee progress using performance ratings and documentation from earlier review conversations. This helps keep everyone accountable. 

Performance Reviews and Retention: The Bigger Picture 

Effective performance management has a direct impact on retention. When employees feel valued and see a clear pathway to growth, they’re more likely to stay engaged and committed. 

Support High-Performers 

Show appreciation for your top talent. Employees who feel invested in are more likely to remain with the organization.

Address Poor Performance Early 

Proactively addressing issues helps avoid long-term challenges and ensures underperforming employees understand what is expected moving forward. 

Common Mistakes to Avoid 

Here are some pitfalls to watch out for during the appraisal process. 

  • One-Sided Reviews: Focus on dialogue, not monologues, to keep reviews collaborative. 

  • Vague Feedback: General comments like “Good work” lack actionable insights. Instead, be specific. 

  • Not Linking Feedback to Business Goals: Always tie conversations back to the company’s objectives. 

Tools and Templates to Support Your Process 

Simplify your performance management systems by leveraging tools and templates. 

  • Performance Review Templates: Use standardized templates to evaluate performance consistently. 

  • Self-Evaluation Forms: Help employees reflect and provide meaningful input. 

  • Documentation Software: Streamline record-keeping with systems like Trakstar. 

Final Tips for Success 

Performance reviews are an ongoing process that requires consistency and care. Here are some final tips for success. 

  • Be empathetic in your review conversations. 

  • Foster a culture where feedback is a regular part of employee engagement. 

  • Leverage platforms like LinkedIn to share insights and build your employer brand. 

Looking to improve your performance review process? 

Need help with talent management? Contact Adecco Canada today to build a high-performing team. Contact us now for expert HR support. 

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