Best Practices for Managing Employee Performance Reviews

Performance reviews play a vital role in effective employee management. When handled well, they reinforce strengths, address areas needing improvement, and encourage growth. However, without a thoughtful approach, these reviews can become challenging for both employers and employees. There are things employers can do to set themselves and employees up for success with performance reviews. Walcheske & Luzi recommends the following tips.

Prepare in Advance

Effective reviews start with thorough preparation. Managers should review the employee’s job description, recent work, and prior performance assessments. Documenting performance throughout the year avoids last-minute memory gaps, ensuring a fair and accurate evaluation. Clear documentation also helps if any legal questions arise, as it provides a clear record of performance.

Establish a Positive Tone

Creating a respectful, positive environment helps make a performance review a two-way conversation. Start by acknowledging the employee’s accomplishments to show the review is not just about identifying areas to improve. Employees may be more open to constructive feedback when they feel valued, leading to more productive discussions.

Be Clear and Specific with Feedback

Vague feedback is unhelpful; instead, focus on clear examples and actionable suggestions. For instance, if you’d like to communicate an issue with time management, point to specific projects or deadlines and discuss strategies for improvement. Clear, concrete feedback provides direction and makes expectations easy to understand.

Set Realistic, Measurable Goals

Performance reviews are a good opportunity to set achievable goals that align with the employee’s career growth and the organization’s needs. Collaborate with the employee on setting specific, measurable objectives that create motivation and serve as benchmarks for future evaluations.

Handle Sensitive Topics with Care

If there are significant performance issues, approach them with empathy and give employees an opportunity to explain any underlying challenges. This openness can lead to finding solutions or resources that support improvement. If performance falls consistently short, communicate next steps professionally and ensure the process aligns with company policy to avoid potential legal issues.

Commit to Regular Follow-Ups

Following up on the performance management is essential for real progress. Regular check-ins on goals and ongoing feedback help reinforce the commitment to employee development and keep performance management a continuous process, rather than a once-a-year event.


Successful performance reviews require preparation, specific feedback, collaborative goal setting, and a respectful approach. By incorporating these practices, employers can build a culture of accountability, growth, and trust that benefits both employees and the organization while reducing potential legal risks. If you need assistance or counsel with your company’s performance reviews, reach out to Walcheske & Luzi.