Performance reviews are important for employees, but too often they fail due to poor structure and lack of preparation. A performance review should be a concrete tool for developing employee experience, performance, and work guidance. Instead, it often becomes just a formal process, completed once the discussion has been held and reported to HR. In this article, I will explain how simple changes can make a performance review truly meaningful.
Why Do Performance Reviews Fail?
There are three main reasons why performance reviews often don’t work:
- The structure does not support meaningful discussion. Many organizations use a performance review model that spans 5–6 pages and covers a wide range of topics, making it difficult to focus on what’s essential. A good performance review can be conducted with a concise structure – for example, 10 well-thought-out questions can be enough for a meaningful dialogue.
- Lack of preparation. Research shows that only 10–20% of performance reviews involve proper preparation. A good performance review requires that the employee has had time to reflect on the topics in advance and has possibly raised additional issues important to them.
- Setting ineffective goals. Too often, the goals set during performance reviews are not linked to daily work. For example, goals set in January are revisited in December, only to realize that the year has been spent doing something else entirely. Goals should be directly connected to everyday tasks.
How to Improve Performance Reviews?
Instead of holding heavy annual reviews, here are a few simple tips:
- Increase frequency: Hold performance reviews more regularly, for example, quarterly. This will lighten the content of the discussions and keep them relevant.
- Emphasize preparation: Ensure that employees prepare for each review by reflecting on their work experience, past months, and future needs. Well-prepared discussions will be smoother and more effective.
- Set clear and achievable goals: During the review, focus on setting three key priorities for the next three months instead of trying to plan the whole year at once.
- Follow up on progress and update goals: Track the progress of previously set goals and establish new ones as needed. This way, performance reviews become a practical tool that supports growth and is visible in daily work.
Once a new structure is in place and implemented, it’s crucial to ensure it is consistently applied across the organization. A key element of a feedback culture is ensuring the designed process doesn’t just remain a nice-looking PowerPoint but becomes part of everyday practice.
Humbol users save up to 95% of the time spent organizing conversations – scheduling, calendar invites, invitation texts, pre-discussion questions, and reminders. Additionally, they prepare for discussions much more efficiently and are more likely to generate clear actions from the conversation.