How to Run a Performance Review Meeting

A Simple Guide for Employers

Performance reviews can be incredibly useful when they are handled well.

They give employers and employees a chance to pause, look back at what has gone well, discuss any areas for improvement and agree on clear objectives for the months ahead.

However, many small businesses either avoid performance reviews altogether or only hold them when there is already a problem. That can make the conversation feel more difficult than it needs to be.

What is a performance review?

A performance review is a structured meeting between an employee and their manager or employer.

The purpose is to discuss how the employee is performing in their role, what has gone well, whether any support is needed, and what should happen next.

A good performance review should usually cover:

• Job knowledge

• Communication

• Problem-solving

• Initiative

• Customer service

• Attendance and timekeeping

• Overall performance

• Successes during the review period

• Areas for improvement

• Objectives for the next review period

• Training or support needed

  
  

It should not feel like a one-way conversation. The employee should have the opportunity to share their own comments, ask questions and contribute to the objectives being agreed.

Why are performance reviews important?

Performance reviews help employers create clarity.

They give both sides a written record of what has been discussed, what has been agreed and what is expected next.

This can be particularly helpful when:

• An employee is doing well, and you want to support their development

• There are small issues that need to be addressed early

• An employee needs clearer objectives

• A manager wants to review progress after probation

• A business wants a more consistent approach to managing people

• Training or support needs have been identified

Handled properly, performance reviews can help prevent misunderstandings. They can also give employees a clearer sense of direction and help employers spot concerns before they become bigger problems.

How often should performance reviews happen?

There is no single rule that works for every business.

Some employers hold formal reviews once or twice a year. Others prefer shorter, more regular check-ins throughout the year.

For many small businesses, a practical approach is to combine regular informal conversations with a more structured review every six or twelve months.

The key is consistency. If reviews only happen when something has gone wrong, employees may start to see them as negative. If they are part of normal working life, they become much more useful.

How to prepare for a performance review meeting

Before the meeting, the manager should take time to review the employee’s role, recent work, objectives and any previous notes.

It is also helpful to ask the employee to think about:

• What they feel has gone well

• What they have found challenging

• What support they may need

• What goals they would like to work towards

The meeting should be planned in advance, held privately and given enough time. A rushed review is unlikely to be useful.

What should be discussed during the meeting?

A good performance review should be balanced.

It should recognise strengths as well as areas for improvement. Feedback should be specific and based on real examples wherever possible.

The conversation might include:

• What has gone particularly well during the review period

• Whether the employee has met previous objectives

• Any concerns about performance, behaviour, attendance or timekeeping

• What support, training or guidance may be needed

• What objectives should be set for the next review period

If there are concerns, they should be explained clearly and fairly. The employee should also be given the opportunity to respond.

Setting SMART objectives

One of the most useful parts of a performance review is agreeing what happens next.

For example, instead of saying:

“Improve communication”

A SMART objective might be:

“Provide a written update to the team every Friday by 3pm for the next three months.”

This makes the expectation much clearer and easier to review later.

Why use a performance review template?

A performance review template helps keep the meeting focused.

It gives the manager a structure to follow and helps make sure important points are not missed. It also creates a written record of what was discussed and agreed.

This can be useful for future reviews, employee development, training plans and, where needed, managing ongoing performance concerns.

Download Swan HR’s free Performance Review Template

To help employers run more structured and useful review meetings, Swan HR has created a free Performance Review Template.

The template includes space to record:

• Employee and appraiser details

• Performance ratings

• Comments on key skill areas

• Successes during the review period

• Areas for improvement

• SMART objectives

• Training and support needed

• Employee and manager comments

• Sign-off details

You can request the free template below

Need help with performance reviews or employee management?

Performance reviews are most effective when they are part of a wider approach to managing and supporting employees.

If you need help setting up a review process, dealing with performance concerns, or making sure your HR paperwork is clear and appropriate, Swan HR can help.

Contact me, Susan, at Swan HR for practical HR support tailored to your business.