A Beginners Guide: Performance Reviews

Without regular performance evaluations, employers may not notice that an employee is battling with a facet of the job, or may fail to recognise excellent performance. Here's how to get the most out of an employee evaluation.

- Marvin Opperman

As your business evolves from start-up to scale-up, or grows from a small business into a medium-sized employer, it will inevitably become necessary to formalise your HR processes. From recruitment and onboarding, to employment equity and training, there is certainly a lot to think about. One vital function you should not overlook is performance reviews.

Performance reviews used to be a source of angst for employees, especially when associated with salary increases, performance bonuses, or negative feedback. But more progressive companies today see them as an opportunity to help people grow in the business. They offer a platform for employees to seek support, resolve issues, and set realistic goals. This helps employees flourish and improves collaboration across the organisation.

A performance review is a meeting between an employee and manager to discuss the employee’s performance. Businesses usually have performance meetings every quarter or once a year. Managers and employees provide feedback, set targets for improvement, and negotiate pay increases. Regular reviews help you keep team members motivated and work with them to improve their performance over time.

Both the employee and the company will get more from the performance review when it is treated as an important and valuable part of the employee experience, rather than a box-ticking exercise. It is also important to note that performance reviews should not preclude high-quality, constructive and regular feedback throughout the year.