How to manage a performance review

Here's a statistic that might surprise you - only 14% of employees say that performance reviews inspire them to improve.

That’s a missed opportunity. Because when done well, performance reviews – whether part of a regular check-in or a formal performance appraisal – can fuel employee engagement, productivity and retention.

So what can you – as a manager or business owner – do to make your performance review process more effective? The performance review process is more than a conversation; it's an opportunity to align goals, reflect on growth and set expectations moving forward.

Here are ten practical tips to help you bring clarity, confidence and positivity into your employee performance reviews – so your team feels empowered, motivated and supported in their roles.

1. Allow enough time for employee performance reviews

Sometimes the simplest things make the biggest difference - show your employees you care about their development by booking in enough time for their performance review. Anything less than an hour can mean a rushed appraisal and an unhappy employee.

Allow time for discussion, reflection and the inevitable questions. If you're hosting a performance review with a particularly talkative team member, then book in more time.

It's good practice to err on the side of caution and book in more time than you think you'll need – that way you have a buffer should the conversation take an unexpected route.

2. Prepare well

Time spent preparing for a performance review is time well spent. As well as reviewing feedback and performance against results, spend time thinking about how your employee may react to some of the feedback and recommendations.

Brainstorm questions they may have for you and consider role-playing potentially awkward conversations with a trusted mentor.

Not sure what sort of thing to include in a performance review? Here are some prompts. Is your employee punctual? How do they work within the team? Do they suggest ideas for projects or objectives and show autonomy? Consider how well they meet deadlines and manage their workload, as well as how creative/innovative they are in their approach to the job. Don't forget to mention any other project work they might do across the wider company.  

3. Avoid surprises

Effective employee performance reviews should never feel like a bolt from the blue.

If you’ve been giving regular feedback in one-to-ones or day-to-day conversations, your team member will already have a good sense of where they stand. That means less anxiety, more clarity, and a more meaningful conversation.

Continuous feedback helps reinforce what’s going well, and gives your team a chance to course-correct where needed. It also helps build a positive work environment and support long-term growth.

4. Ask for self-assessment in advance

Getting your employee to complete a self-assessment beforehand helps create a more balanced, two way conversation. It encourages reflection and accountability, and gives you both a useful starting point.

It also takes the pressure off you to lead the entire conversation. Often, your employee will be more critical of their own performance than you would be.

If there are goals they haven’t met, a self-assessment often brings this out early – reducing the need for tough conversations. It also gives insight into their sense of career development and personal growth.

5. Include a range of feedback for more effective employee performance reviews

Broaden the review process by including 360-degree feedback. Insights from colleagues can give a fuller picture of your team member’s performance – especially when it comes to things they might not be aware of.

This broader view supports a positive team environment where team efforts are recognised and valued. It also gives space for team discussions around strengths and development areas.

Want to know more? Here’s a useful read on 360-degree feedback.

6. Use real examples in performance management conversations

Make performance reviews meaningful by gathering feedback and notes throughout the year – not just at review time.

That way, your feedback is well-rounded and fair, and doesn’t just reflect the most recent events. This helps highlight the employee’s progress over time and show how they’ve contributed to the team’s success.

If you’re already holding regular team meetings and one-to-ones, you’re doing the hard part. Using HR software can help you track feedback and performance data, so it’s easy to refer back to when you’re conducting annual reviews.

7. Focus on strengths and development when conducting performance evaluations

Aim to spend more time on positive feedback than negative. That doesn’t mean avoiding issues – it’s about offering constructive feedback that helps your team member grow.

For example, if someone seems abrupt when interrupted, instead of saying "people think you're rude", you might say: "Your focus on getting things done is brilliant. Let’s look at how we can balance that with being open to spontaneous questions."

This approach keeps things supportive while still addressing the issue and provides a basis for building new skills that support future performance.

8. Keep the conversation focused for more effective performance review

Steer away from the feedback sandwich – it can feel forced and inauthentic. Instead, keep your performance evaluation focused and honest.

Ask open-ended questions like:

• What goals do you think will be most challenging this quarter?

• What support do you need from me?

• How often would you like feedback?

• What could I do better as a manager?

These kinds of questions help create a more collaborative environment and ensure you're on the same page when it comes to expectations and performance ratings. They also make room for providing feedback that’s both constructive and helpful.

9. Be honest (and kind)

Honesty builds trust. And kindness helps people hear what’s being said - especially when it’s something they weren’t expecting.

Refer to specific examples of your employee’s work to back up your points. Keep your tone calm and constructive, and think about how your feedback will land.

Remember, your goal isn’t to criticise - it’s to help your team member succeed by offering meaningful feedback that supports their professional growth and improves the employee's work performance.

10 . Put yourself in their shoes

It’s easy to forget, but performance reviews can be emotional. Not everyone responds the same way to feedback - even when it’s well-meant. And even if there's lots of positives, people tend to focus on the one bit of negative feedback they hear - it's called negativity bias. 

Try to put yourself in their shoes. If your feedback triggers a strong reaction, take a breath and refocus on the facts. Having clear examples, a calm voice, and a supportive tone can help steer things back on track and maintain a positive team environment. The way you speak to your employees and deliver feedback can have a huge impact on team morale and job satisfaction. 

What should you do after a performance review?

Great performance reviews don’t end with the conversation. They lead to meaningful next steps.

Whether it’s a development plan or a follow-up meeting – make sure there’s a clear action plan and timeframe.

And don’t feel you need to do everything in one session. Your employee might need time to absorb the conversation. Booking a separate session to agree actions can help you both feel more focused and less rushed.

Performance reviews are a chance to reflect on past performance, recognise achievement, and set new goals aligned with employee feedback and your wider team objectives. Done well, they contribute positively to team and organisation culture, and lay the foundation for successful outcomes.

Want to make performance management simpler?

See how Breathe’s people management software can help you run formal performance reviews, track employee performance, and keep your review process on track.

And if you're looking to build confidence in your approach to managing performance, why not check out our free performance management course for line managers on the Breathe Growth Academy?

Led by HR expert Donna Obstfeld, this short course is designed to help line managers build confidence in managing performance effectively. It comes with practical supporting resources, including a downloadable performance review template, an appraisal checklist, a performance progress checklist, and a quick guide to having smarter performance conversations.

Whether you're new to line management or looking to sharpen your approach, it's a helpful next step to support your team’s growth - and your own.