A formal review at agreed times during the year ensures employees have clear targets to aim for and can perform to agreed standards, both in terms of what is expected and how the results are achieved. The degree of formality of the review will vary depending on your workplace.
What you must do
- You are under no specific legal obligation to conduct a performance review or to provide a pay rise, unless it was agreed on in an employment agreement. However, it is a good idea to have some form of performance feedback system and criteria in place that both you and your employee understand.
What you could do
- Conduct a performance review on at least an annual basis to provide feedback on the employee’s performance and discuss targets for the year.
- Seek feedback from key people the employee works with, such as co-workers, customers and managers.
Allow your employee time to prepare for the review, so they can bring up examples of good performance during the review period.
- Link the performance review with their salary review, so that good performance is rewarded with an increase in salary.
- Ensure your employees know their work is appreciated when they perform well, and discuss how they will continue to develop their skills.
- If your employee is not performing well, ensure you clarify your expectations and support them by discussing training and allowing them time to improve.
- Acknowledge performance achievements in nonmonetary ways, such as offering gifts, dinners or a team day out of the office.
- Put personal views aside during performance reviews so you can be objective and fair.