Performance evaluations should not simply be a check-the-box exercise. It’s worth the investment to create a process that is meaningful and reflective of the organization’s culture and strategic needs. Structured performance feedback programs with goals in alignment with the annual strategic plan energizes the team. Using key organizational goals that have a natural, meaningful alignment with the core competencies create a powerful positive amplification loop.
There are three components of the performance management cycle: goal setting and planning, ongoing feedback and coaching, and appraisal and reward. Employees are best served with a regular cadence of structured one-on-ones plus an annual review, creating a collaborative effort that builds on open communication displaying both care and candor – honest, direct, and genuinely respectful. Less formal one-on-one meetings can work in lieu of an annual process, but providing feedback matters deeply.
As a complement to EnsuriseHR’s webinar session on Performance Feedback That Works we summarize how to approach sensitive conversations with confidence and empathy.
How, When, Where, and What
Decide who’s eligible for an annual review, build a timeline for the evaluation process and communicate that to your employees so they understand how the process will flow so that they’re neither surprised by nor waiting for a meeting. Invest in making your review meetings effective with thoughtful preparation for this very important conversation.
Most commonly a self-evaluation, a standard supervisor-completed review, and sometimes 360° feedback on leadership skills comprise a full assessment. (Having an online performance evaluation system increases the likelihood that a 360° process will be an effective tool.)
The most effective evaluations are rooted in core competencies tied to the values and needs of the organization. In the highest-performing organizations, core competencies are defined in advance and used in hiring, evaluation, and promotion – and reflect how the organization presents itself and executes the mission. A useful annual evaluation also provides feedback on core functional skills – both general and role-specific skills.
A non-numerical, descriptive 3-tier rating system provides a helpful framework and avoids a debate around the difference in performance between a 2 and a 3. For example:
Building momentum, demonstrates growth and effort, works toward consistent improvement.
Reliably strong, consistently meets or exceeds expectations and shows dependable performance.
Exemplary achiever, consistently delivers outstanding results and sets a high standard of excellence.
Do not neglect to provide feedback on what has gone well in the performance period, help or improvement needed, and any concerns or issues to discuss. Regardless, the conversation is key. By talking first, and then providing the written evaluation after, a supervisor has the opportunity to present in person rather than leaving the employee to stew on it overnight.
10 Simple Rules for a Written Review
No surprises. Performance feedback should never be shared for the first time in an evaluation, if it can possibly be avoided. If not, acknowledge that the issue hasn’t been raised before. For example: “I recognize we haven’t discussed your attendance. But I feel it’s important to bring this issue to your attention now because it’s going to impact you in the new year.”
Don’t let the form get in the way. Your organization may use any number of review formats (online, pen and paper, etc.), but the key is to think deeply about what to say before diving in. List a few positive behaviors to recognize and reinforce and a few problems or challenges to discuss, then complete your document making sure nothing is missed.
Avoid the recency error trap. Base feedback on the whole term, not just recent highlights or challenges. Don’t trust your brain to remember everything through the course of the year. Create a system to record items that need to be documented in the evaluation and review your notes, highlighting trends throughout the evaluation period and from year to year. If the message differs from previous evaluations, be ready to explain.
Avoid an evaluation that comes back to haunt you. An evaluation covers the prior performance period. Your highest performers want to focus on the future, but it’s important to avoid predictions like, “I expect great things in 2026”, or “they have a fantastic future with the company” – which could create a sense of entitlement.
It’s okay to give an A. Focus on authentic praise and recognition, citing specific behaviors rather than general statements. Say thank you for a job well done, recognizing special achievements, ongoing contributions, and continued hard work.
But, don’t give everyone A’s. While it is possible every member of the team is amazing, it’s a leader’s job to distinguish between superior performance and overall good work. Try ranking your staff from most to least crucial contributor. As the leader, you must help them grow. Work on customizing each evaluation with specific feedback and development plans to create a process that will benefit everyone.
It may be appropriate to add disciplinary language. If it becomes apparent that an employee is really struggling, this might be the right time to add disciplinary language. Introduce the disciplinary issue with something like, “In addition to documenting that your overall performance for this period does not meet company expectation, this annual evaluation will also serve as a performance improvement plan.” Make sure to work with HR to get everything in place.
Understand how your words can be used against you and the company. Remember to adhere to labor law. The annual evaluation is given more weight in an employee compliance claim because it covers an entire year’s work, so mention disciplinary issues during the year, and record progress to make sure that you are compliant.
Do not include any discriminatory language. Just talk about the work. The evaluation may not document or reference anything that is protected by privacy laws, federal laws, or state discrimination laws. Sometimes, it’s completely inadvertent, referencing personal information or the reason for a leave of absence, which could run afoul of the Americans with Disabilities Act. No references should be made to person’s age, their ethnicity, their sexual or gender orientation, religious beliefs, medical history – or anything protected under Title VII or state worker protection laws. These things could be used against you and the company in a court of law.
Avoid the word ‘attitude’. It is a very subjective term and can be viewed as a difference of opinion. Instead, describe the behavior that created a negative or positive perception of the team member in the eyes of others.
The Conversation is Key
To design and support a competencies-based performance process and effective evaluation system requires time and thought. Though feedback and performance processes may vary, there’s no substitute for providing clear, meaningful feedback to your team during the course of the year.
- Notify the reviewee at least 2 weeks in advance to leave ample time for all parties to gather and review documentation. Put the team member at ease by explaining the process.
- Schedule a private time and place to talk.
- Take care to avoid personal bias and accurately evaluate the “glows and grows” of your own supervisory performance.
- Outline or consider goals for future performance, moving the conversation from reflection to ambition. Brainstorm the solutions for areas needing improvement and build on strengths.
- Pause, ask for thoughts and feedback throughout. Create an environment that encourages two-way communication where both participants feel comfortable expressing care and candor
- If there is substantial disagreement, take a break, finalize it later. An employee who isn’t accepting feedback often has a trust issue. People like to be good at what they do and if they can find a trusted leader they listen and adjust behaviors accordingly.
- Create a set of answers to have ready in case common questions come up, like why am I not rated highest in everything? What will it take to get there? Why was I rated differently than last year?
- Excellent resource: Performance Evaluation Phrases for Core Competencies – for each competency, the book has phrases that for a reviewee who meets or exceeds expectations, or who needs improvement, plus goals for each competency.