Employee Performance Reviews

Your businesses success will depend on the support of a happy and productive team of employees!

Conducting performance reviews have a number of benefits:

  • Can decrease the uncertainty around the job requirements
  • Allows you to reward great performance
  • Help manage expectations
  • Helps identify each team members strengths, challenges and interests
  • Opens the door to training and development opportunities
  • Chance to reinforce positive behaviours
  • It is an opportunity to further engage staff
  • Creates a greater shared understanding between employee and manager

At this time of year many of you will be thinking about conducting employee performance reviews, no matter if you only do them once a year, here are some tips on how to get the most from them.

  1. Make sure you are fully prepared before sitting down with the employee
  2. Avoid detailed reviews that could be seen as overly complicated
  3. Avoid negative surprises, any issues that arise through the year should be dealt with as they occur not be stored up for the review
  4. Be open at how performance is measured as employees really want to know what criteria they are being measured against
  5. Ensure the measures are something they have control over!
  6. Don’t focus solely on the numbers, each employee will bring intangible benefits that should be acknowledged
  7. Ensure you cover areas that are important to that employee
  8. Evaluate the job performance and not the person so avoid criticizing the employee
  9. Find out what are the long term goals of the employee and how you can assist them reach these goals
  10. Handle all performance reviews in a consistent manner
  11. In the event of poor performance ensure you protect your business against possible future litigation by documenting the poor performance
  12. Job security is the number one concern of most people so tell your employees how much you value their contributions to your business
  13. Reviews are not about answering forms they should focus on creating discussion around shared understanding
  14. Reviews should be done proactively with the purpose of improving employee morale and productivity while looking forward to the period ahead
  15. Show your concern for the employee’s work/life balance and discuss solutions to improve that balance
  16. Try to formulate questions that seek the employee’s ideas and input, the review will be far more effective if there is two way conversation rather than dialogue
  17. When commenting on behaviours avoid hearsay, assumptions or generalisations it must be specific, detailed and observed
  18. Build on your relationship with your employees as a strained relationship will often lead to an inefficient review process

If you would like assistance in developing your own performance appraisal system contact one of the consultants from Watts Price Accountants today on (03) 5382 3001 to discuss your individual needs!


Richard Kemp – Watts Price Accountants
E: richardk@wattsprice.com.au

The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.