Performance reviews can feel awkward. For managers and employees. Done well, though, they’re not about criticism or box ticking. They’re a chance to pause, take stock and talk honestly about what’s working and what isn’t.

This guide explains how to approach performance reviews in a way that feels fair, useful and human.

Why performance reviews matter

Most people want to know how they’re doing at their jobs. Silence often creates more anxiety than honest feedback because people fill in the blanks in their own minds.

A good review helps employees understand what they’re doing well and where they can improve. It also gives you insight into what support they need and how they see their role.

For your business, reviews help keep goals aligned. They make sure effort is going in the right direction.

Don’t leave feedback until once a year

An annual review shouldn’t be the only time someone hears how they’re performing. Regular check-ins throughout the year make formal reviews easier and means there aren't any surprises. If feedback is ongoing, there’s no unexpected news when you sit down to talk.

Think of the review as a summary of conversations you’ve already been having.

Prepare properly

Performance reviews work best when both sides come prepared.

Before the meeting, look at agreed goals, recent projects and any feedback from clients or colleagues. Encourage the employee to reflect on how things are going as well. What are they proud of? What’s been more difficult? What would they like to achieve next?

Preparation keeps the conversation focused and balanced.

Keep the conversation two way

A performance review shouldn’t feel like a lecture. Give clear examples when you talk about strengths or areas to improve. Be specific rather than general. For example, instead of saying someone needs to improve communication, explain what that looks like in practice using an example of when it hasn't gone well and maybe an example of when it has to keep things balanced.

Just as importantly, listen. Ask how they feel about their workload, the team and the direction of the business.

Set clear, realistic goals

A review should end with everyone feeling clear about what's been said, agreed and why. Agree on a small number of clear goals. Make sure they’re realistic and linked to the business’s priorities. Too many targets can make the employee feel overwhelmed and dilute their focus.

Write down the outcomes you've decided on and agree how progress will be measured over the next period of time.

Handle difficult conversations carefully

Unfortunately, it's just a fact that not every review will be comfortable. If performance isn’t where it needs to be, be honest but fair. Focus on behaviour and outcomes rather than personality. Explain the gap and what needs to change, and agree on support to help close it.

It's kinder to be clear and straightforward than to give hints and hope the person catches on.

Follow up after the review

A review isn’t finished when the meeting ends. Check in on agreed goals in the months that follow. Recognise progress. And be flexible to adjust plans if circumstances change.

Consistency shows that the review wasn’t just a formality.

Performance reviews aren’t about catching people out. They’re about helping people grow and making sure everyone understands what good looks like.

When handled well, they build trust rather than tension.