Ah, the performance review… the human resources tool that everyone loves to hate. Managers and employees alike struggle to find value in reviews, but when done right, they guide career development and keep the organization moving forward.
With turnover still high in many organizations, and with so many workers still in a remote or hybrid environment, I’d argue that goal setting, performance check-ins, feedback and performance reviews are more important than ever. The tips below will work well virtually or in-person.
Goal setting: Start with the big picture. What are the company’s goals? How does each employee contribute to the bottom line? Once employees understand the big picture, they can draft their own goals. How will they personally move the needle? When employees pen their own goals, they have more ownership, commitment and a stronger likelihood that the work gets done even when the manager is not around.
•Take your time: Sharing company vision and generating employee goals doesn’t need to happen in the same conversation. It’s OK to let employees sleep on it and come back with their ideas in a few days.
•Ask questions: How can you contribute? What can you do that would move us forward? How could you help solve this problem? How would you go about that? When do you think you could do that? What support would you need?
Check-ins and status reviews: Goals are great, but not if they are written in disappearing ink (or buried in your Human Resources Information System). How do you keep them top of mind and drive continual progress?
•First, establish a consistent meeting time. Even if it occasionally gets rescheduled, a standing meeting ensures a time, a safe space and a pattern of dialogue that builds trust and drives performance. When you meet with your employee regularly, most of what you’ll talk about is positive. You get the chance to say things like, “yes, good job, thank you and keep going.” You can be the hero. Without a regular one-on-one schedule, managers tend to only come around when something’s broken or off track. When you’ve taken the time to establish trust and a safe venue, employees will tell you about which goals are at risk before you must be the villain.
•Second, use Google Sheets, OneNote, Predictive Index Perform, your HRIS or some other shared, real-time means of visualizing the goal, the status, notes and next steps. The power of seeing an action item and a deadline written on the screen creates clarity and a sense of urgency. When chatting with your employee, watch for non-verbal attitude indicators such as shoulder shrugs, slouching, sighs, foot-tapping and nail-biting, which might be signs the employee has not bought into their goals. Open-ended questions are your friend here, too. A few of my favorites are: “What would you change about this plan? What’s getting in your way? What’s going well? Can you give me an example? How are you feeling about this?”
The actual performance review: The key to performance reviews is remembering that most of your team members are average performers or better. (Poor performers tend not to hang around too long in most organizations). Your team members who show up and meet or even exceed their goals every day should leave their review feeling encouraged, appreciated and empowered. The true crime of reviews is when the rock stars of your team leave their review feeling beaten up and frustrated, like they’ll never please you. Don’t let this happen.
First, embrace the weird. “I know these conversations are awkward anyways, but I don’t want to the weirdness to distract from the fact that this is an important conversation. So let’s make the most of it.” Second, say thank you. “I probably don’t say it enough, but thanks for everything you do.” Give specifics. Third, let them talk. “How do you think the year (or quarter) went? What were your highlights? Challenges?” Finally, remember to focus on the positives. For someone meeting expectations, it’s fine to provide constructive feedback, but phrase it in the context of “to take it even further next time” or “to continue development in this area” or “to really knock it out of the park” rather than “you shoulda or coulda.”
If you are dealing with a poor performer, just cut to the chase. “Your performance is not where it needs to be. There are a few areas where you are not on track. I believe you can turn it around, if you’re ready to commit.” Share examples and use your tracking tool to gain written commitment and keep progress on track.
Sure, performance reviews might not be your favorite managerial task, but reviews are a great opportunity to build trust, deepen the relationship and move the organization towards its goals. As a manager, it’s a great time to hone your leadership skills. Demonstrating leadership in this area will benefit your career as well as that of the people on your team.
This article appears in January SBJ 2026.