What should you assess in an employee performance review?

Assess the work the employee was responsible for, using expectations you communicated beforehand. SHRM recommends making performance standards clear before the review and distinguishing individual responsibilities from those of the manager or company. Read its guidance on standards.

An annual performance review is a yearly evaluation covering agreed goals, strengths, progress, and areas for development. That is the definition used in Indeed’s employer guide. For your own form, treat a criterion as a clear description of what acceptable work looks like.

Write expectations someone can act on

Choose a few responsibilities that matter to the role. For each, write the expected result and how you will check it. Replace vague labels such as “professional attitude” with observable actions, such as keeping the next person informed when a deadline changes.

Hypothetical example: an online shop assistant handles customer messages but cannot approve refunds. Assess whether they explain the process accurately and pass the request to the right person. Discuss delays in approval separately with whoever owns that decision.

• Check that the expectation belongs to the employee’s current role.
• Separate work quality from your personal preference about working style.
• Record missing evidence instead of guessing a rating.
• Agree on new expectations for the next period before using them.

If the role itself needs clarifying, use the questions in the guide to hiring the right employee for a small business to rewrite its responsibilities first.

What should you prepare before the conversation?

Collect the job description, previous commitments, and relevant examples of completed work. HRMorning recommends checking actual duties against the written role, gathering relevant feedback, and arranging a private space without interruptions. See its preparation checklist.

Build a small evidence pack

Select examples from across the review period. Include work worth repeating and work that needs attention. Beside each example, write the expectation, what you observed, and what you still need to ask.

Do not turn this into a collection of complaints. Ask colleagues about a shared task and the behavior they observed. If a comment cannot be connected to an example, keep it as a question to investigate.

Send the employee the agenda in advance and ask them to bring their own examples. Indeed recommends helping both parties prepare and sharing a structured agenda before the meeting. Read its preparation recommendations.

• Which piece of work are you most satisfied with?
• Where did the work become harder than expected?
• What decision or support did you need from me?
• What would you like to handle more independently?

For a newer employee, also list what you have explained or demonstrated. Use the guide to new employee onboarding when organizing that preparation. Check the training record before treating an unfamiliar task as an established expectation.

How do you structure the review meeting?

Open with the purpose, hear the employee’s account, compare examples, and agree on actions. Indeed recommends a structured agenda and clearly assigned next steps for both employee and employer. See its meeting guidance.

A practical conversation order

1. Set the scope. Name the role and period being reviewed.
2. Ask for the employee’s view. Let them explain their selected examples.
3. Discuss your observations. Compare the work with the original expectation.
4. Explore the gap. Ask about information, decisions, workload, or skills that need attention.
5. Choose the next action. Write down who will do what and when you will check progress.

Hypothetical example: a small design agency’s account coordinator sends incomplete briefs. During the review, the coordinator explains that sales hands over projects without approved deadlines. Examine both the coordinator’s checking process and the information sales must supply.

Ask, “What am I missing?” before settling on your conclusion. If the employee disputes an example, identify the document or conversation you both need to check. Leave that point open until you have done so.

When disagreement becomes personal, pause the judgment and return to the task. The guide to resolving conflict at work offers a related next read. Keep your review notes focused on what needs clarification.

How do you give constructive feedback without making it personal?

Describe the action, explain its observed effect, and invite a response. SHRM recommends specific observations, discussion of impact, and a two-way conversation about the employee’s perspective. Read its feedback framework.

Use a concrete opening

Hypothetical wording: “The campaign brief reached the designer without the approved offer. The designer had to stop and request it before continuing. What happened during the handover?” Use this only when those events actually match your evidence.

After listening, ask what should change in the next handover. Offer your own commitment too: “I will confirm who approves the offer before the next campaign starts.” Record the employee’s action and your action separately.

• Replace “You are careless” with the missing item or incorrect work.
• Replace “You always do this” with the examples you can verify.
• Replace “Show more initiative” with a decision they can make independently.
• Recognize good work by naming the action you want them to repeat.

If you do not know the impact, say what you know and ask about the rest. Avoid turning a suspected consequence into a fact. Before ending the topic, ask the employee to describe the agreed next step in their own words.

For further discussion about recognition and support, read how to motivate employees in a small business. In the review itself, connect recognition to a specific contribution.

What belongs in a simple performance review template?

Use one page that connects an expectation to evidence and an action. Indeed lists evaluation rubrics, reflection sheets, goal templates, and agendas as useful review tools. See its suggested tools.

Copy these fields

Start with paper, a document, or an Excel sheet. Choose whichever you can update during the conversation. Keep access limited to the people who need the review for their work.

If your business uses ratings, define each rating before the conversation and add a supporting example. Leave room for an explanation. When evidence is missing, record that gap rather than automatically assigning a low score.

Hypothetical completed action: “For the next project handover, the coordinator will check that the brief includes the approved offer. The manager will identify the approver. At the next review, we will examine the handover together.” Add a date that fits the actual project schedule.

What should happen after the review?

Share the written summary and schedule the next discussion before the meeting closes. SHRM recommends ongoing feedback and regular follow-up after the formal review. Read its follow-up guidance.

Ask the employee to flag factual errors in your notes. Mark unresolved disagreements honestly. Check your own promised support at the next meeting alongside the employee’s action.

Your plan for this week

• Select one role and confirm its main expectations.
• Gather work examples and send preparation questions.
• Hold the review and agree on one priority improvement.
• Write down support, ownership, and the follow-up date.
• Ask whether the expectations and next step are clear.

When the employee wants more responsibility, identify an assignment you can discuss separately. The guide to asking for a promotion can help them prepare that conversation. Avoid making a promotion promise you have not decided.