How to Do an Effective Annual Review

Effective annual reviews highlight positive performance and areas for improvement.

After a year on the job, most employees look forward to sitting down with their manager for their annual review. They anticipate a review of their performance, an evaluation of last year's goals, a discussion of milestones that were met and the setting of new goals for the coming year. Depending on the outcome, they may also expect increased responsibility, a promotion or a salary increase. Effective annual reviews require preparation, planning and thoughtful completion of review forms.

Things You'll Need

• Job description
• Review forms

Instructions

1. Keep track during the year. As time passes, memories fade. Set up a file for each employee and make notes throughout the year of positive contributions and areas for improvement. Include copies of letters or emails from satisfied customers, managers or co-workers. These notes will give a clear picture of the employee's overall performance. Without this documentation, it's easy to focus on the last few weeks or months before the review, or a particular positive or negative experience.

2. Set a mutually convenient date for an in-person review, if possible. Reviews for remote employees can be conducted using video conferencing technology. Employees appreciate the effort it takes to clear your schedule and make the annual review a priority. It helps strengthen working relationships and mutual respect.

3. Review your notes. Analyze the employee's human resources file and your notes. This documentation should give a balanced picture of the employee's performance over the past year. Compare performance with written goals from the last annual review and note areas of improvement. Each statement or goal should be based on documented performance and not on emotion.

4. Complete the review forms. Annual performance review forms are legal documents that can be subpoenaed in an EEOC complaint or unemployment compensation hearing. Be honest in marking rating scales and written comments. Human resources should review the annual reviews before they are delivered to ensure that they do not contain discriminatory language and are complete. Be honest. If an employee's performance needs improvement, don't rate him as "excellent" in every category.

5. Block the time and place. Reserve the conference room and schedule any needed equipment for the review well in advance. Resist any attempts to postpone or let someone else's emergency bump the review.

6. Guard against interruptions. Turn off your cellphone and computer and close the door. Let your administrative assistant, team members and co-workers know that you are unavailable for the next hour or two. Give your full attention to your employee. Regardless of the review outcome, he will appreciate your attention and planning.