How to Conduct Annual Employee Reviews

Annual employee reviews represent an important source of feedback for employees working under direct supervision. These evaluations help employees understand how they can do their jobs more effectively for the benefit of their employers. Reviews also constitute a permanent record for an employer. As records of performance, annual reviews support human resource decisions, such as hiring, firing, promotion, discipline and reclassification. Without these records, employees will continue in their jobs with no basis for advancement in the organization or the ability to correct their performances as needed.

Gather Documentation

• 1

  Analyze the employee's job description and operating manuals. Find examples of standards against which to measure the employee's performance.

• 2

  Meet with the employee to explain the job standards and what methods will be used to evaluate his individual performance. This step might include managers and employees developing individual goals.

• 3

  Obtain the employee's signature to indicate her receipt of the company's job standards and evaluation methods.

• 4

  Review the employee's work performance and habits according to your company's measurements of success throughout the evaluation period. Collect the information generated by these reviews into an electronic or paper file.

• 5

  Provide periodic feedback to an employee over the course of the evaluation period.

Prepare for a Review Meeting

• 1

  Use the collected data and managers' observations to write ratings and comments for an employee.

• 2

  Schedule the meeting with the employee at least one business week beforehand; alert him that it will be in regard to his annual review. This gives him time to prepare for this important meeting.

• 3

  Arrange for the meeting to take place in an environment in which an employee will feel comfortable. Do not schedule the review for in your personal office.

• 4

  Invite the employee to bring her own documentation of her performance.

• 5

  Send an electronic or paper copy of the annual review form to the employee and encourage him to rate his own performance.

Conduct a Review Meeting

• 1

  Meet with the employee. Discuss positive contributions she has made to the department first.

• 2

  Discuss areas for improvement. Show examples of areas in which a less than satisfactory rating is given.

• 3

  Listen to the employee's responses regarding the ratings contained in your document.

• 4

  Suggest areas for improvement. Explain strategies that will help the employee to succeed in the next evaluation cycle.

• 5

  Schedule another meeting to write new goals for the upcoming year.

• 6

  Close the meeting by revisiting positive comments and praise presented during the meeting, leaving the employee with a positive impression about your evaluation process.