Performance and Development Are Year-Round Priorities
Performance reviews are an essential part of any thriving organisation—but too often, they become a rushed formality or a dreaded date in the calendar. When done well, however, they are an opportunity to celebrate growth, clarify expectations, and align individual development with business success.
To get the most out of performance reviews, it’s important to treat them as a milestone in an ongoing process—not a once-a-year event. Below, we explore best practices for managing performance and development across the year, running effective appraisals, and creating a culture of transparency, and growth.
The most successful performance reviews are built on the foundation of continuous engagement. Here’s what that looks like in practice:
- Regular 1:1s: Holding monthly or biweekly one-on-ones helps managers and employees stay aligned, flag challenges early, and keep momentum going. These conversations are a chance to check in on goals, development, and wellbeing—not just tasks.
- Ongoing Feedback: Encourage a culture of real-time feedback. Recognition, coaching, and course corrections should happen throughout the year, not just during formal reviews.
- Goal Setting and Revisiting: At the start of the year—or at any logical project kickoff—set clear, measurable goals that align with both the team’s objectives and the organisation’s strategy. Remember to revisit and revise goals as business needs evolve too.
Best Practices for Running a Strong Performance Appraisal Process
When it’s time for formal appraisals, thoughtful preparation makes all the difference. Here’s how to ensure the process is meaningful and productive:
- Preparation is Key: Both managers and employees should come prepared. Managers should review notes from the year’s 1:1s, collect relevant data and feedback, and reflect on the individual’s achievements and development.
- Make It Clear How Performance Is Measured: There should be no ambiguity about how success is defined. Use agreed-upon metrics, examples, and expectations so that employees understand exactly what’s expected and how they’re progressing.
- Encourage Honest Self-Reflection: A good review includes the employee’s voice. Provide a simple, clear self-assessment template that prompts individuals to reflect on their goals, growth, contributions, and areas for improvement. Employees should be encouraged to complete a self-reflection ahead of time.
- Structure the Conversation: Reviews should cover key accomplishments, challenges, development needs, and future goals. It should feel like a two-way dialogue, not a monologue or a checklist.
- Keep It Constructive and Balanced: Make space for recognition of what’s gone well, but don’t shy away from difficult feedback when needed. Constructive conversations—when handled respectfully—can be a catalyst for growth.
Other Factors for a Successful Process
To support a high-quality appraisal process, you’ll also want pay attention to these often-overlooked elements:
- Timing: Avoid rushing through reviews at the end of the fiscal year. Build in time for thoughtful preparation, reflection, and follow-up. Give managers clear deadlines and realistic timeframes.
- Communication and Transparency: Clearly communicate the purpose, timeline, and expectations for the review process. Employees should understand what’s happening, when, and why.
- No Surprises: A performance review should never be the first time someone hears critical feedback. If it is, that’s a failure of the ongoing management process. Surprises erode trust—clarity builds it.
- Create a Point of Reference: Document the review clearly and share it with the employee. It becomes a valuable tool for tracking progress, revisiting goals, and guiding coaching conversations throughout the year.
A Tool for Growth, Not Just Evaluation
When thoughtfully managed, performance reviews are more than an administrative process. They become a key tool for employee engagement, development, and alignment with business goals. By focusing on clarity, regular communication, and mutual accountability, you can foster a culture where people know how they’re doing, how to grow, and how they contribute to the bigger picture. Done right, performance reviews aren’t about ticking boxes. They’re about building better conversations—and better teams!
Need help to establish a more effective performance appraisal process or practices in your business? We’re here to help. For tailored advice and practical guidance, feel free to reach out to us at hello@hellomonday.co.nz or give us a call on 09 377 5200.