Performance reviews can be powerful catalysts for growth —if done well. Whether you are a manager or an employee, here is how to make the most of them.

1. Making Ongoing Feedback

Regular check-ins throughout the year are not just essential, they are empowering. By not waiting for once-a-year reviews, you can help people improve sooner and avoid surprises during formal reviews, putting you in control of the process. Giving employees time to prepare by letting them know the review is coming.

2. Come Prepared

Base your feedback on real examples and data. Include work results, peer feedback, and project performance. Keeping notes throughout the year is essential so you do not forget significant wins or issues.

3. Making Performance Reviews a Two-Way Conversation

Start by asking the employee how they think they are doing. Let them speak. Avoid vague feedback. Instead of saying, “That did not go well,” say, “Next time, try including more data in your presentation.”

4. Setting Clear Goals

Use the SMART method: goals should be Specific, Measurable, Achievable, Relevant, and Time-bound. This approach will keep everyone focused and purposeful. Setting these goals together is essential, so both parties agree and understand what the expectations are.

5. Balancing Positives with Areas to Improve

Celebrate successes with specific praise. Being honest about what could be better—and focus on actions, not personality.

6. Do not Compare Employees

Each person is unique. Comparing team members can lead to unhealthy competition and can be demotivating for some. Instead, focus on individual growth and development. Each employee should be evaluated based on their own performance and potential, not in comparison to others.

7. Be Open and Clear

Telling employees what the review will include ahead of time. Be transparent about how performance is measured.

8. Coach, Don’t Just Judge

A performance review is not about criticism—it is about helping someone grow. Lead with empathy. Show you want to help in succession, not just point out flaws.

9. Tie Feedback to Company Values

Some companies (like Amazon or TikTok) align reviews with company culture. Use the review to reinforce values like teamwork, innovation, or customer focus.

10. Plan and Follow Up

Do not wing it. Take time to think through what you would say, and always follow up on action points so the momentum from performance reviews turns into real development, not just paperwork.