Performance reviews for small business: a simple process that works

Performance reviews have a bad reputation, mostly because they are done badly: a rushed form, a surprise rating, nothing written down. A small team can do them well with a short, repeatable process.

Why bother

A good review helps people see how they are doing, agree on what comes next and feel noticed. It also gives you a record to look back on when you consider a promotion or a difficult conversation.

A process in four steps

1. Start the cycle. Pick a period, such as the year or half-year, and include every active employee.
2. Self review. Each person writes about their own work first.
3. Manager review. The manager responds with the self review in view.
4. Share. The manager shares the review when it is ready, and the two of them talk about it.

Why the self review goes first

Asking people to reflect before their manager writes does two things. It makes the conversation more balanced, and it shows you how people see their own work, which is often useful on its own. Managers then respond to what was said instead of starting from a blank page.

Ratings, feedback and goals

In the Performance reviews app, a manager rates five areas from one to five, adds written feedback and sets goals for the next period. Using the same five ratings for everyone makes reviews easier to compare and keeps the conversation about the work.

Good feedback is specific. Say what happened and what difference it made. Good goals are few and clear: two or three things the person can actually finish.

Keep drafts private

People should not see half-written feedback. In the app, the employee sees the manager's review only once it is shared, and until then it stays private. When it is shared, it is saved to the employee record as part of their history.

Track progress

During a cycle you want to know who has finished. Each review shows where it is: self review, manager review, ready to share or shared. That lets you nudge the right people without chasing everyone.

Tips for the conversation

• Hold it in person or on a call, not by email.
• Start with what went well.
• Ask what would help them do their job better.
• End with the goals, written down.

You can read about the app on the performance review software page.