How to do an effective Performance Review if you’re a first time manager

If you’ve recently been promoted or have a new manager in your department who has their own team for the first time, chances are, you (or your new manager) might be a bit daunted by the prospect of having to review their team’s performance for the first time. Here we take you through the steps.

No matter how you conduct a performance review, there are a couple of key principles it’s crucial to adhere to:

Key Principles of delivering a Performance Review:

1. Performance Reviews should provide honest feedback. about your team member’s performance, even if this means an uncomfortable conversation needs to be had. Ultimately, if you aren’t straight with your team members, they will never know that they aren’t meeting your expectations, and consequently can’t make adjustments accordingly, and in the process you will only get more frustrated, so it’s failing both of your not to honest.
2. Performance Reviews should be as objective as possible. Your opinion and perspective of someone’s performance should be based on tangible evidence and objective information as far as possible. Emotions should have no influence in the Performance Review.
3. Performance Reviews should focus on capabilities to focus on building, not weaknesses. Bad experiences outright the good ones. As a manager your role is to build up your team’s capabilities and individual confidence levels. This means, even when giving honest hard feedback, your framing is key. You should be aiming to balance your good vs improvement points in a 5:1 ratio to maintain the spirits of your team members but inform them of where they need to work on.
4. Back up your statement with specific examples. Nothing is less helpful than being given feedback but not understanding when this event occurred. Always give examples.
5. Dont do all the talking. A Performance Review is a two-way conversation, make sure you are listening as much as your are talking.

How to do a Performance Review:

1. Preparation

• Review Past Performance: Look at the employee’s performance over the entire review period, not just recent events. Consider objectives, key performance indicators (KPIs), and projects completed.
• Collect Feedback: Gather input from various sources, such as peers, direct reports, and managers. This provides a well-rounded view of the employee’s contributions and areas for improvement.
• Review the Employee’s Self-Assessment: If your company uses self-assessments, review the employee’s perspective on their own performance. It helps create alignment and identify any discrepancies that need to be addressed.
• Document Examples: Bring specific examples of successes and areas for improvement. These real examples will make your feedback more actionable and clear.

2. Set a Collaborative Tone

• Start with Positives: Begin by acknowledging the employee’s accomplishments and strengths. Highlighting positive aspects of their performance helps to build trust and opens the door to more constructive discussions.
• Invite Reflection: Encourage the employee to share their thoughts, including how they felt about their performance, what challenges they faced, and what they need to succeed. This ensures the review feels collaborative rather than confrontational.
• Frame Feedback Constructively: When discussing areas for improvement, focus on behaviours and outcomes rather than personal attributes. For example, say “I noticed there was a delay in the project; let’s discuss how we can improve that” rather than “You are always late with projects.”

3. Discuss Achievements and Progress

Discussing achievements reinforces positive behaviour and shows your team member that their efforts are noticed and appreciated.

• Review Goals Achieved: Compare the goals set at the beginning of the review period with what the employee has accomplished. Highlight major wins, such as completed projects, improvements in skills, or meeting/exceeding KPIs.
• Celebrate Milestones: Even if the employee didn’t fully achieve every goal, celebrate the milestones they’ve hit along the way.
• Recognise Challenges Overcome: Acknowledge any significant challenges or obstacles the employee has overcome, and discuss how they handled them.

4. Provide Clear, Actionable Feedback

• Be Specific: Vague feedback is unhelpful. Instead of saying “You need to improve communication,” try “I’ve noticed some communication gaps with the team during project X. Let’s talk about how we can streamline updates.”
• Balance Praise and Constructive Feedback: While it’s important to highlight areas for improvement, balance it with praise for what the employee is doing well. This creates a more positive experience and motivates the employee.
• Offer Solutions: Rather than just pointing out what’s wrong, offer actionable steps the employee can take to improve. For example, “To improve your project management, I recommend using a task-tracking tool like Trello to stay organized.”

5. Set Future Goals

• Set SMART Goals: Goals should be Specific, Measurable, Achievable, Relevant, and Time-bound. This makes them clear and easy to track. See our blog here on SMART targets
• Align Goals with Career Development: Understand the employee’s long-term career aspirations and align some of their goals with their development interests. This fosters engagement and helps retain talent.
• Link Goals to Company Objectives: Make sure that the employee’s goals align with the broader objectives of the company. This helps them understand how their work contributes to the company’s success.

6. Discuss Development and Support Needs

An important element of an effective review is discussing the employee’s professional development and identifying areas where the company can provide support.

Topics to Discuss:

• Skills Development: Are there any skills the employee wants to build or improve on? How can you help facilitate this, whether through training, mentorship, or job rotation?
• Career Aspirations: What are the employee’s long-term career goals, and how can the company support them in reaching those goals?
• Resource Needs: Does the employee need additional resources, tools, or support from the company to meet their goals and improve their performance?

7. Document and Follow Up

After the review, it’s essential to document the key takeaways and agree on action items. This ensures accountability and provides a reference for future discussions.

Best Practices for Follow-Up:

• Summarise Key Points: Document the main points discussed, including accomplishments, areas for improvement, and the goals set for the next review period.
• Create an Action Plan: Outline the specific steps that both the employee and the manager will take following the review. Include timelines and any support the employee will receive.
• Check-in Regularly: Don’t wait until the next review cycle to follow up. Schedule regular check-ins to monitor progress, address challenges, and adjust goals as necessary.

8. End on a Motivational Note

An effective performance review should leave the employee feeling motivated and excited about the future. Be sure to close on a positive, forward-looking note.

How to End the Review:

• Express Confidence: Let the employee know that you believe in their ability to meet their goals and continue growing in their role.
• Offer Support: Reinforce that you’re there to support their development and success, and encourage them to approach you with any questions or challenges.
• Look Ahead: Frame the future as an opportunity for growth and improvement. This creates excitement for what’s to come.

Conclusion

An effective performance review is a powerful tool for improving performance, fostering employee growth, and aligning individual goals with the company's objectives. By preparing thoroughly, offering constructive feedback, and setting clear goals, managers can ensure that reviews are productive and beneficial for both the employee and the organisation.

When done right, performance reviews strengthen relationships, boost engagement, and pave the way for continuous improvement.