Master the Art of Effective Performance Review Communication

Performance reviews can be one of the most nerve-wracking experiences for both managers and employees. However, when done right, they can be incredibly rewarding and beneficial for everyone involved. How your management team communicates with employees during performance evaluations can drive high-performing teams... or cause major problems.

After 12 years of HR consulting, I've mastered the art of communicating performance reviews. Let's take this dreaded chore and turn it into a powerful tool for growth and development. Here are seven proven techniques for effective performance review communication.

Set Clear Objectives

Why Setting Objectives Matters

Before diving into a performance review, it’s crucial to set clear objectives. This isn’t just about knowing what you want to say, but understanding what you want to achieve. Clear objectives ensure that both you and your employees are on the same page.

I once worked with a small business owner who was frustrated with a consistently underperforming employee. We decided to set clear objectives before the review. The goal was not only to address the issues but also to map out a plan for improvement. By the end of the meeting, the employee understood exactly what was expected, and we saw significant improvement in their performance over the next few months.

Pro-Tip: Establish SMART Goals

SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, “You need to improve your sales,” doesn't offer the employee a specific, measurable, achievable and relevant goal. Instead, try “Increase your monthly sales by 10% over the next quarter by following up with at least five clients per week.”

This communication framework can provide employees with a better understanding of your expectations and how to achieve them. I worked with a client who struggled to communicate employee goals effectively. This led to managers and employees both feeling frustrated. With better communication, the team members are now thriving and employee job satisfaction is way up.

Prepare Thoroughly

The Importance of Preparation

Preparation is key to a successful performance review. This means gathering all relevant data, employee achievements, and areas for improvement well in advance.

Example: In one of my previous roles, I saw a manager wing a performance review without proper preparation. The result was a vague and unproductive discussion that left the employee confused and demotivated. After that experience, we implemented a structured preparation process, which made a significant difference in the quality of our reviews.

Pro-Tip: Steps to Gather Relevant Data

1. Review the employee’s job description and past performance reviews.
2. Gather quantitative data such as sales figures, project completion rates, and customer feedback.
3. Collect qualitative data from peer reviews and self-assessments.
   

Use Balanced Feedback

The Power of Balanced Feedback

Balanced feedback combines positive reinforcement with constructive criticism. This approach not only highlights areas for improvement but also acknowledges the employee’s strengths.

I once had a manager who only focused on what was wrong, never acknowledging what was done right. This approach led to low morale and high turnover. We shifted to a balanced feedback model, and the change was palpable. Employees felt valued and were more open to constructive feedback.

Pro-Tip: The Sandwich Method

Start with positive feedback, followed by areas for improvement, and end with more positive feedback. For example, “You’ve done a fantastic job with client relations this quarter. However, I’ve noticed that your report submissions have been a bit late. Let’s work on improving that. Overall, your dedication to our clients is commendable.”

Performance Review Phrases to Avoid

Avoiding these phases can ensure the feedback is constructive and does not demotivate or offend employees. Here are some common phrases to avoid, along with explanations and better alternatives:

1. "You always..."

• Why to Avoid: Generalizing statements like "You always" can be perceived as exaggerations and may make employees defensive.
• Alternative: "I've noticed that on several occasions..."

2. "You never..."

• Why to Avoid: Similar to "You always," this phrase is overly broad and can come across as accusatory.
• Alternative: "There have been instances where..."

3. "You need to improve..."

• Why to Avoid: This statement is vague and does not provide specific guidance on what needs improvement.
• Alternative: "Let's work on improving your [specific skill or behavior] by [specific action]."

4. "Your performance is unacceptable."

• Why to Avoid: This phrase is harsh and can be demoralizing without offering a path to improvement.
• Alternative: "I've observed some areas where we can work together to enhance your performance."

5. "I'm disappointed in you."

• Why to Avoid: This phrase is personal and can make the employee feel undervalued.
• Alternative: "Let's discuss the challenges you're facing and how we can address them."

6. "Why can't you be more like [another employee]?"

• Why to Avoid: Comparing employees to each other can create resentment and a negative work environment.
• Alternative: Focus on the individual's strengths and areas for improvement without comparisons.

7. "You're just not a good fit."

• Why to Avoid: This phrase is dismissive and does not provide actionable feedback.
• Alternative: "Let's explore ways to better align your skills with our goals."

8. "That's not my problem."

• Why to Avoid: This phrase shuts down communication and shows a lack of support.
• Alternative: "How can we work together to resolve this issue?"

9. "I don't have time for this."

• Why to Avoid: This phrase indicates that the employee's concerns are not important.
• Alternative: "Let's schedule a time to discuss this in more detail."

10. "You don't seem to care about your work."

• Why to Avoid: This is an assumption about the employee's attitude and can be offensive.
• Alternative: "I've noticed that your engagement has dropped. Is there something affecting your motivation?"
  

When conducting performance reviews, it's essential to focus on specific, constructive, and actionable feedback. Avoiding these negative phrases can help create a more positive and productive review process, fostering an environment where employees feel supported and motivated to improve.

Foster an Open Dialogue

Encouraging Open Communication

An effective performance review is a two-way street. Encouraging open dialogue and active listening can lead to more meaningful conversations and better outcomes.

Example: I remember a time when an employee was visibly uncomfortable during their review. I paused the formal discussion and asked for their thoughts and feelings. This simple act of listening turned the meeting around. We discovered some underlying issues that were affecting their performance, and we were able to address them together.

Pro-Tip: Create a Safe Environment

Make it clear that the review is a conversation, not a lecture. Ask open-ended questions like, “How do you feel about your performance this quarter?” and “What challenges have you faced?”

Focus on Development and Growth

Shifting Focus to Development

Performance reviews shouldn’t just be about evaluation but also about development. Focusing on growth opportunities can motivate employees and show them that you’re invested in their success.

Example: In one of my roles, we had an employee who was struggling with certain tasks but showed great potential in others. By focusing on their strengths and providing development opportunities, we were able to reassign them to a role where they thrived.

Pro-Tip: Create Actionable Development Plans

Work with the employee to identify areas for growth and set specific action steps. For example, “Attend a time management workshop and implement at least three new strategies by the next review.” This plan is clear, measurable, and actionable. 

Be Specific and Actionable

The Need for Specificity

General feedback is often ineffective because it doesn’t provide clear direction. Specific, actionable feedback gives employees a roadmap to improve.

Example: I once heard a manager tell an employee, “You need to be more proactive.” The employee was confused about what exactly they needed to do. We rephrased it to, “I’d like you to start each week by planning your tasks and setting three priority goals. Let’s review your progress in our next meeting.”

Pro-Tip: Use Specific Feedback Statements

Instead of saying, “Your reports need improvement,” say, “Your reports should include more detailed analysis and be submitted by the deadline.”

Follow-up and Continuous Communication

The Importance of Follow-Up

A performance review shouldn’t be a one-time event. Regular feedback and continuous communication help reinforce improvements and sustain performance.

Example: In one instance, we implemented monthly check-ins after the annual review. This allowed us to address issues promptly and provide ongoing support. The result was a noticeable improvement in overall performance and employee satisfaction.

Pro-Tip: Best Practices for Follow-Ups

Be sure to set a schedule for regular check-ins. For example, “Let’s meet monthly to discuss your progress on the goals we’ve set. We can adjust them as needed to ensure you’re on track.”

If you promise a performance review follow-up, you need to deliver. Employees will be demotivated if they feel forgotten. Set a reminder to ensure you check-in with the employee as scheduled.

Conclusion

Effective communication during performance reviews is a skill. With practice and intention, this is a skill anyone can improve. With clear objectives, balanced feedback, and regular follow up - you can turn performance reviews into opportunities for growth and improvement.

Remember, the goal of a performance review is to evaluate and inspire your employees in their professional journey. Implement these techniques, and you’ll see a positive impact on both your employees and your business.