Performance reviews

A performance review is a planned, regular meeting between an employee and their line manager to look at how the employee has been working and what they have contributed to the business. It is normally held one-to-one. It is not a customer review and it is not a disciplinary meeting: the aim is to improve performance, not to punish someone.

Reviews let employees reflect on their work and agree new targets. The discussion should be two-way and based on evidence, such as job records or customer feedback. Reviews also identify training and development needs, so the business can provide the right support. For example, at a bike repair workshop, a mechanic's review uses job sheets and customer comments. They agree a target to cut repair times, and the manager arranges training on e-bike motors.

Benefits

Benefit	Why it helps
Feedback	Employees hear what they do well and what to improve.
Motivation	Feeling listened to and valued can make employees work harder.
Alignment of goals	Employee targets are set so they pull in the same direction as the business's aims.
Training needs	Reviews reveal skills gaps so training is targeted.
Promotion	Evidence of progress helps spot people ready for more responsibility.
Productivity and retention	Clear expectations raise output, and staff who know where they stand are less likely to look for another job.

Drawbacks

Time and cost: managers must prepare and hold reviews, taking them away from other work.
Stress: employees may worry about being judged, especially if they expect criticism.
Bias: a manager may favour someone or judge them unfairly, so the review is not evidence-based.
Demotivation: negative feedback that is badly handled can make an employee feel undervalued.

A rushed review can feel like a box-ticking exercise, while an unfair one can feel like a judgement. Handled well, a review connects target setting, training and development so employees know what is expected and how to improve.

Benefits

Drawbacks

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