How to conduct a Performance Review

Performance reviews are the cornerstone of growth, development, and success for both employees and organizations. In previous articles we’ve already highlighted the relevance of conducting effective performance reviews and we’ve given you examples and templates to use. However, we haven’t told you how to conduct a performance review!

A well-structured performance review can be a powerful tool for recognizing and improving employee performance. But it also helps align individual goals with organizational objectives, and foster a culture of open communication and continuous improvement . Do you want to know how to conduct a performance review correctly?

The following words will guide you through the intricate process of designing, launching, and managing a performance review to achieve meaningful results . We’ll explore the key steps, best practices, and strategies to create a performance review process that not only evaluates past events but also lays the foundation for future success.

Preparing for a performance review

To ensure that performance reviews are both effective and constructive, it is crucial to approach this process with careful planning and thoughtful consideration . There are various aspects that organizations should take into account when preparing for a performance review. From setting clear goals and communicating the process to employees, to defining the right questions and measurement scales. If you still want to discover how to conduct a performance review, the process starts right here!

1. Analyzing your company
2. Setting clear objectives
3. Evaluating how this process fits with others
4. Defining the purpose of the performance review
5. Defining the right time and periodicity
6. Including the right questions
7. Choosing the right measurement scale
8. Choosing a performance review platform
9. Communicating the purpose and process to employees

Analyzing your company

Before conducting a performance review, it’s highly important to turn your attention inward and thoroughly analyze your company. This self-reflection can significantly impact the quality and effectiveness of your performance review process .

Understanding your company culture, values, and goals will enable you to tailor performance reviews to align with your organization’s specific situation, needs and objectives . Take the following into consideration:

• Align with company culture and values: recognize and embrace your distinct culture and values in your performance reviews. When employees see that the evaluation process is aligned with the culture and values, they are more likely to feel engaged and motivated. It also reinforces the importance of these values in the daily work of your employees, contributing to a more cohesive and purpose-driven workforce.

Setting clear objectives

Setting clear company goals forms the foundation upon which the entire process rests and is essential for its success. Without having previously defined goals, the practicality of the evaluations will be reduced .

• Clarity and alignment: having clear objectives provide both managers and employees with a roadmap for the performance review process. Without well-defined goals, the review can become a vague and subjective review, making it difficult to assess progress and make meaningful improvements.

Evaluating how this process fits with others

Consider how the process fits within the larger context of your company’s various operational and talent management processes . The synergy between performance reviews and these processes are key to creating the perfect performance review.

• Other people management process: performance reviews are intricately linked to your other people’s strategies. Consider how the feedback and data gathered during performance reviews can contribute to talent acquisition, training and development, and compensation decisions, among others. This will help you create a more efficient approach to engaging your workforce.

Defining the purpose of the performance review

Keep in mind that you will need to design your performance review based on what you want to achieve with it. The purpose sets the tone, expectations and outcomes of the review process. It also determines the questions employees will be asked to answer . Here you have a list of a few examples of performance reviews’ purposes:

• Evolution and goals at 6 months: this review focuses on tracking the employee’s evolution over the prior six months and how their goals are expected to develop in the upcoming half-year. It serves as a valuable approach for establishing forthcoming objectives.

If any of the aforementioned purposes align with the idea you have in mind, don’t forget to take a look at this article about performance review examples . There you’ll find 8 downloadable templates and 260 questions to include in your reviews.

Defining the right time and periodicity

Choosing the right timing and frequency for conducting performance reviews plays a pivotal role in ensuring the effectiveness and relevance of the evaluation . Don’t forget that it also impacts the overall employee experience significantly.

• Regularity and consistency: employees need to know when to expect their performance reviews. Whether they are conducted annually, quarterly, or even more frequently. This regularity ensures that the review process becomes an integrated part of the company’s culture.

Including the right questions

Choosing the right questions serve as the backbone of the review process as they shape the quality and depth of insights gathered .

• Alignment with purpose: do you remember the different purposes of performance reviews we previously talked about? As we mentioned above, it will serve to design the questionnaire of your performance review .

Choosing the right measurement scale

Once you’ve decided which questions you’ll include, choose the scale that best fits each of them. We recommend creating short descriptions of each of the options and integrating them into the evaluation to ensure that participants understand scales perfectly.

Here are some scales you can use:

• Numerical Scale 1 to 4: use this scale when you need to make a decision, as people need to have a clear opinion as there is no middle ground.