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How To Effectively Review Employee Performance?

Reviewing the performance of employees provide considerable benefits to organisations. However, skipping performance review or poor implementation of performance management programs lead to detrimental organizational outcomes. Let’s understand the domain, its process and implementation in depth.

What is a performance review?

A performance review is a process followed by organisations to ensure that the employee is delivering his or her KRAs and also serves as an opportunity to voice his / her concerns on their performance, work place environment, support, tools & training required to enhance their performance.

Each organisation may have different methodologies on Performance Reviews but the key take away of all reviews will need to have the following parameters for review depending on the job function and level of responsibility.

- Choose the Right Candidate for the Right Task
- Check if he / she is fit and has the skill sets to perform the role being offered
- Check if the candidate needs handholding and periodic training to deliver the task
- Check if the reporting manager is competent enough to guide the employee and get the best out of the employee
- Define the KRAs / Goals at the beginning of the job role
- Define the measurement parameters
- Asses and allocate the correct weightage to each of the parameters
- Define & design the point allocation matrix
- Set timelines of the review (Quarterly)
- Ensure that the KRAs are explained to the employee at the beginning of every Review Season
- Have informal reviews periodically (Once a Week / Fortnight or so)
- Give feedback to the employee & guide them

Once these basics are in place then the Review process can be rolled out. Some of the key things to be kept in mind by the Manager during the review process:

- Make it a point to communicate to the employee the positive aspects of their performance, and recognize them for their efforts
- Have a positive attitude, and articulate the negative aspects in a way the employee is not demotivated – but be direct
- Take a 360-degree feedback by also talking to other co-workers with whom the employee interacts
- Prepare the points to be discussed before the review meeting
- Give time for the employee to fill out their own ratings and reviews
- Having a healthy conversation is the key to a successful performance review process
- Let the Employee voice out their reviews and support required before you share your reviews and rating
- Ensure you explain in detail why you have a particular rating for each parameter

Every team wants an employee who is motivated and excited about his / her ability to grow, develop and contribute for the rise of the organisation. Aim for performance review meetings in which the employee talks more than half of the time. You can encourage this conversation by asking questions such as:

• What do you think will be the most challenging aspects about your goals for this quarter?
• What support can we provide that will help you achieve these benchmarks?
• What are your hopes for your achievements this year?
• What do you think I should change to be a better manager for you?
• How often would you like to receive reviews & feedback?
• What kind of schedule can we set up so that you don't feel micromanaged, but I receive the feedback that I need as to your progress on your goals?
• Would you like to draw an agenda for our weekly one-on-one meeting?

Following these few steps diligently will help managers be effective and nurture talent at their organisation, and also have a better relationship with their teams, which in turn propels the team and the organisation on a successful growth path.


Satish is the Integrator at Creative Factor Group. As a co-founder and business operational expert, he has been helping organisations collaborate, find purpose and break functional roadblocks to thrive in the opportunities in the developing business markets. Connect with him satish@creativefactor.in



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