Run performance reviews that actually improve performance

Coordinate with the direct manager to book a 45-60 minute meeting for the performance evaluation. Choose a private setting away from daily distractions. Send a calendar invite with the purpose clearly stated so both parties can prepare adequately for a productive conversation.

Review the employee role, responsibilities, and career trajectory. Outline specific goals for the next review period - include measurable targets, skill development areas, and stretch assignments. Use SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound) to ensure goals are actionable. Align individual goals with team and company objectives.

Based on the goals defined by the manager, identify training courses, mentorship opportunities, and resources needed for employee growth. Check budget availability for external training programs. Create a realistic timeline for skill development activities over the review period that balances workload with learning.

For senior manager evaluations only: CEO or executive leadership reviews the evaluation, proposed compensation changes, and promotion recommendations. Ensures alignment with company budget and strategic priorities. Provides final sign-off before communicating decisions to the employee.

Gather objective data first - metrics, completed projects, goals achieved or missed, and key accomplishments. Then collect feedback from peers, direct reports, and stakeholders for a complete picture. Document specific examples of both strengths and areas for improvement. Come to the review with facts, not just impressions.

Ask the employee to rate their own performance against established goals. Have them document: What went well? What could improve? What support do they need? This self-reflection creates a starting point for meaningful conversation and often reveals blind spots on both sides.

Have an honest two-way conversation in a private setting. Start with wins and accomplishments, be direct and specific about performance gaps, and listen more than you talk. Ask open-ended questions to understand the employee perspective. No surprises - if feedback was given throughout the year, this should feel like a summary, not a reveal.

Collaboratively define 3-5 clear, measurable goals for the next period. Use SMART criteria: Specific, Measurable, Achievable, Relevant, Time-bound. What skills should they develop? What results should they achieve? What milestones mark progress? Write them down clearly and ensure mutual agreement on expectations.

Record the key points from the discussion: performance ratings, agreed goals, development plans, and any compensation or role changes. Both parties should sign off on the documentation for HR records. Schedule a check-in meeting for 30-60 days later to track early progress on goals and address any obstacles.