Prior to meeting
Review feedback already given during the review period.
The performance review shouldn't be the first time the employee has heard about a problem (or their good work). Performance issues, as well as positive feedback, should be addressed or noted at the time they occur and reiterated during the review.
If you have communicated performance concerns in the past, such as in a written or verbal warning, the performance review is an opportunity to remind the employee of past discussions and provide documentation.
Apply a standardized rating scale.
Use a standardized performance appraisal form and system to rate employees on their pre-established objectives and goals for the review period. For example, many employers use a 1-5 rating system.
When rating the employee, determine how successfully the employee is performing each of their assigned objectives and goals. Include detailed comments and examples to support the rating.
Whatever system you use, make sure the criteria are valid, job-related, and applied consistently to all employees. Ensure that the feedback and ratings are accurate and don't reflect conscious or unconscious biases.
Never fault an employee for activity that is protected. For example, many federal, state and local laws give employees the right to job-protected leave and prohibit retaliation against employees who exercise their rights to take leave. If an employee takes protected leave, you may not count this time against the employee when assessing their attendance or performance. There are a number of other laws that protect employees for engaging in other types of conduct, such as lawful off-duty activities.
To help keep performance appraisals in line, many employers require them to be reviewed by company leadership or human resources prior to being delivered to employees.
Reduce distractions.
When scheduling the performance review meeting, choose a mutually convenient time and a private location. Consider the employee's workload and schedule the meeting after a major project or deadline.
Additionally, when merit increases are combined with performance reviews, employees may focus solely on the pay increases and become disengaged from the performance discussion. To avoid this, some employers have two separate discussions, one dedicated to performance and one to communicate any merit increase.
Regardless of how you handle the situation, encourage the employee to focus on the performance evaluation, so they can understand their ratings, learn what they need to do during the next review period, recognize what they are doing well, and ask any questions they have.
Consider steps to encourage a two-way conversation.
The performance review should be an interactive discussion between you and the employee. To help promote a dialogue, you can ask the employee to evaluate their own performance prior to the meeting.
During the meeting
Open the meeting.
Start the meeting off by explaining that the purpose of the review is to improve performance and/or acknowledge strong performance and foster professional growth. Focus on the exchange of feedback and collaborate on action plans for the future.
Lead with the positive.
Even though an employee may receive a positive review overall, they may get wrapped up in the negative. To help, start the conversation with positive feedback before delving into areas where the employee needs to improve.
While you should acknowledge the positive aspects of every employee's performance, don't avoid or dance around negative feedback — be clear and straightforward and provide examples of any performance issues. Additionally, provide strategies and suggestions for improving performance.
Review progress toward SMART goals and set new ones.
The performance review should address the employee's progress in meeting current goals and establish goals for the next review period. Many employers aim for three or four goals per review period. To the extent possible, include the employee in the goal-setting process. Goals should be SMART — Specific, Measurable, Attainable/Achievable, Relevant and Time-bound.
If an employee was unable to meet their goals or believes new goals are unattainable, discuss the specific reasons why. Be flexible and adjust goals impacted by resource constraints or other circumstances beyond the employee's control.
Be ready to re-focus the conversation.
The performance review should be a constructive conversation, not a debate. If the employee presents new information that is relevant to the performance review (e.g., they claim to have made more sales than indicated in the review), let the employee know that you will look into the new information following the meeting. Avoid making any promises that would change the performance rating, and schedule a follow-up meeting if necessary.
Ask the employee to acknowledge receipt of the review.
At the end of each performance review, ask the employee to sign the written review. If the employee refuses to sign, explain that the purpose of the signature is to confirm that the employee received the information, not that they necessarily agree with it.
If the employee disagrees with the performance review, give the employee an opportunity to provide a written statement explaining why they disagree with the review. If the employee still refuses to sign, note that on the performance record and then date it. Retain a copy of the performance review in the employee’s personnel file.
After the meeting
Follow up.
Check in with the employee regularly to discuss their progress and offer assistance as needed.
As mentioned above, even if the employee’s performance is stellar, make sure recurring, one-on-one meetings are taking place to find out if they are facing challenges and need help.
Conclusion
Train supervisors on the importance of accurate, objective performance ratings, and hold them accountable for following the process consistently. Additionally, have checks and balances in place where performance evaluations are reviewed by upper management or human resources. And consider having recurring connection conversations with all employees on their performance throughout the year to ensure you discuss both examples of work that went well and areas to improve.
