How to carry out an effective performance review

A performance review – also known as an appraisal – is an organised meeting for managers and colleagues to discuss how an individual is performing in their role. Both sides can talk about what is going well, if and what improvements can be made, action that can be taken after the meeting and future development.  

A performance review is typically carried out once a year or every six months. Job website Indeed says organisations typically carry out one to four performance reviews a year, or more in some cases. 

As the professional body for human resources (HR) and people development, the CIPD says performance reviews are “part of a holistic approach to managing performance”. It notes: “The value of annual reviews has increasingly been challenged in recent years in favour of more regular conversations, but even so, performance appraisal remains an important part of the performance management cycle.” 

Having regular performance reviews benefits both organisations and staff. For members of staff, it can help them to keep on track with their personal objectives and the charity’s goals. It can also help people to feel more valued and understand what is expected of them in their job. 

Performance reviews can also help to build positive and strong relationships between managers and their team members – particularly if the manager shows they are being fair and consistent. 

For a charity, when carried out effectively, a performance review can increase staff engagement and, in turn, increase motivation and productivity in the workplace. 

What should happen before a performance review 

To make sure performance reviews are effective, there a number of steps an organisation should carry out before.

Set goals  

When a staff member starts working for your charity, or changes role internally, their manager should set expectations and goals from the start. This will help the staff member to know what is expected of them and what they should be doing. Doing this from the onset, will make it easier to give feedback and carry out effective performance reviews.

Gather the right notes  

Manager should continually gather relevant information to use in performance reviews. This includes: notes from one-to-one meetings, feedback from other colleagues, examples of recognition, and information about projects the staff member has worked on. 

Managers should prepare ahead of the performance review, including completing forms that HR provide. Any forms that the staff member needs to complete should be given to them well in advance of the meeting so they can do their own assessment before the review. Indeed has some tips and advice for writing an employee performance review ahead of a meeting. 

How to carry out an effective performance review 

Make sure you listen 

A performance review is a two-way conversation, so make sure you spend time listening to the staff member. Read our Charity Digital article on active listening for advice and tips. 

Indeed says try to keep the meeting conversational by asking staff for their thoughts and then carefully listening to their answers. 

Think about the language you use 

Managers should be careful about the language they use with their team member – for example, ensuring they focus on the individual person and not comparing them to others. 

Make sure your feedback is positive and point out things that someone has done well. This can help to motivate employees and make them feel relaxed during the review.  

Give constructive feedback 

If someone is not performing in the way you expect, you need to tell them this. Make sure the feedback is constructive. This will give staff clarity on how they improve so they can be more effective in their role.  

Put together a plan of action 

A manager should agree a plan of action with the staff member to take forward over the next few months. This should be based on the manager’s assessment and the employee’s self-assessment. If an employee needs to work on some areas going forward, these should be addressed and captured in the plan.  

Set a date for the next review 

Set a date for the next performance review while you’re in the current meeting. Block out time in diaries. 

Don’t leave any issues to the next review 

In between performance reviews, managers should have regular one-to-one meetings with their team members. Any performance issues should be addressed during these meetings. If you don’t resolve an issue there and then, it could become a bigger problem.  

Equally, if a staff member is doing a brilliant job, don’t wait until the next performance review to tell them. Employees will thrive on positive feedback so make sure you congratulate them there and then.