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Employee performance reviews are valuable opportunities to foster growth, strengthen communication, and build trust between employees and managers. With thoughtful preparation and a focus on mental health, employee reviews can shift from routine check-ins to meaningful exchanges that support both performance and well-being.
What is an employee performance review?
Employee performance reviews are structured conversations between employees and managers to discuss progress, achievements, and goals.
Types of employee performance review include:
- Traditional performance review – Managers provide top-down evaluations of employees’ work and areas for growth
- Self-reviews – Employees assess their own strengths and weaknesses
- Peer reviews – Colleagues provide evaluations and share feedback
Employee performance evaluations typically happen once or twice a year. Some companies opt for quarterly performance reviews to keep employee feedback timely throughout the year.
Why are employee performance reviews important?
Employee evaluations matter because they:
- Help employees understand what they’re doing well and where they can improve
- Build trust between employees and managers
- Empower employees to take charge of their professional development
- Boost morale and motivation
- Clarify expectations for employees Encourage ownership of roles and team contributions
- Align compensation and bonus decisions with employee performance
Goals of employee performance reviews
When done effectively, employee evaluations encourage individual growth and organizational success. Some goals of performance reviews include:
- Identifying development and growth opportunities
- Clarifying expectations
- Recognizing contributions
- Improving communication and collaboration
- Aligning performance with organizational goals
- Providing a sense of purpose
- Increasing accountability
Tips for effective employee performance reviews
By approaching employee evaluations with mental health in mind, companies can turn performance reviews into moments of connection and growth where employees feel seen, valued, and motivated to perform well. Here are eight tips to help prepare a performance review:
#1 Know your purpose
When preparing an employee performance evaluation, ask yourself: What’s my main goal? Is it to fine-tune small improvements, give a heads-up on concerns, or deliver a serious wake-up call? This helps you approach the conversation with clarity.
#2 Address pre-review nerves
If you’re feeling nervous, take a moment to manage your emotions by naming them (such as fear, nervousness, or guilt) and notice any physical responses (like a tense jaw, tight shoulders, or shallow breathing). Try calming techniques, like deep breathing or grounding exercises to help you get centered before the employee review.
#3 Recharge before the review
Just like you wouldn’t want to take an exam on little sleep or work out while dehydrated, you’re more effective in a performance review if you’re feeling good. What are your top three ways to restore balance? Sleep? Exercise? Family? Hobbies? Prioritize these in the days leading up to the review. Remember that tending to yourself helps you better support others.
#4 Show empathy
When employees feel respected and valued, they’re more open to feedback. Empathy can be acknowledging the difficulty of employee evaluation conversations, validating feelings like feeling overwhelmed or nervous, expressing support to help them improve, and offering to pause if the conversation becomes intense.
#5 Set the stage
Walking employees through what to expect in a performance review reassures them there’s space for their questions and provides a clear structure. For example, you might say, “We’ll begin with my feedback. After any questions, we’ll work on an action plan with specific steps, targets, and the support you need. How does that sound?”
#6 Give direct feedback
Share concrete examples of what’s going well and what needs improvement. Use specific examples (the who, what, when, and where) to highlight any gaps between expectations and performance. Focus on behavior and results rather than personal traits. Skip the “compliment sandwich,” which can dilute or confuse your message. Instead, keep praise and constructive feedback separate.
#7 Motivate with what drives them
Tailor your employee reviews to what drives each individual. For example, if career growth is important to them, link improvements to future advancement opportunities. If mastery motivates them, affirm your belief in their ability to meet challenges. For employees who value impact, emphasize the importance of their work to the team or company.
#8 Make feedback ongoing
Part of the stress around employee performance reviews is not knowing what to expect. Feedback in employee evaluations should never be a surprise. With regular communication, employees are more likely to anticipate the tone of their review, which can help ease some of the anxiety of uncertainty.
Download Lyra’s guide on giving performance reviews with mental health in mind
How to give a constructive employee performance review
Delivering difficult news in an employee performance review requires care. When done thoughtfully, addressing challenges can guide employees toward improvement and prevent small work issues from becoming larger performance obstacles.
Here are some tips on how to give a constructive employee performance review:
- Be clear and provide examples – If feedback is unclear, it can be hard to make adjustments.
- Validate emotions – If an employee becomes upset, acknowledge their feelings: “Your experience is valid. It’s normal to have a response to feedback.”
- Partner with human resources and employee relations – HR and ER can offer support for structuring the conversation and directing employees to resources, such as training.
- Recognize the positive – Provide recognition for what has gone well. Acknowledge the effort the employee put into their role and their accomplishments to date.
- Express intentions – When relevant, reassure employees that the purpose of the feedback is success in their role: “I’m giving you this feedback because I want you to excel.”
- Acknowledge communication gaps – If changes in expectations or goals impacted the employee’s performance, acknowledge any communication gaps on your part. For example, if updates weren’t clearly conveyed, recognize this oversight and clarify expectations moving forward.
- Pause if necessary – If emotions run high, offer a break in the conversation and schedule time to resume: “Take some time to process and let’s pick this back up tomorrow when we are both available at 10am .”
- Manage your own emotions – If you feel yourself getting frustrated, take a deep breath. It’s OK to pause the conversation and resume once you feel more centered.
- Review and reset – Summarize the main points of the performance review and ask whether the employee has questions for you. Document what was discussed as a shared reference moving forward.
Maximize the impact of performance conversations
Employee performance reviews are opportunities to strengthen relationships, encourage growth, and align individual and company efforts. By approaching these conversations with mental health in mind, you can inspire motivation, build trust, and create a supportive environment that sets the stage for long-term success.
Elevate your employee review process.
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By
The Lyra Team
21 of November 2024 - 5 min read
Mental health at work
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