Preparing for End-of-Year Performance Reviews: Best Practices

Although it is technically still summer for a few more weeks, it is not too early for managers to shift their thoughts to the completion of crucial tasks. Employee end-of-the-year performance reviews fall in this category. End-of-the-year performance reviews are highly important feedback sessions for both the employee and manager in the quest to strengthen their working relationship to heighten individual and company growth and productivity.  These meetings are a type of strategizing session. If these meetings are held in an unorganized way however, the consequences outnumber the benefits. Preparing for end-of-the-year reviews takes careful thought and detailed analysis. Because December is such a hectic month with holidays, time off requests, and other important year-end duties, developing a plan now to complete these essential reviews will reduce stress later resulting in a more fruitful performance review session for those involved. 

Scheduling Performance Reviews

Before scheduling an employee’s end-of-the-year performance evaluation, establish the reasons why you and the employee are meeting. A meeting of this magnitude is more than a formality. It is a guided opportunity for open communication to identify strengths and areas for growth for both parties.  End-of-the-year performance reviews ultimately are a way to recap the employee’s annual performance and create goals for the upcoming year. When it comes time to communicate the need for the end-of-the-year review session, solidify the actual date of the review on the employee’s and your calendar. Managers should send a calendar invitation to each employee they are reviewing approximately 6-8 weeks before the end of the year to allow enough time for both the employee and manager to adequately prepare. 

Preparing for Performance Reviews

Preparation cannot be reiterated enough so give yourself an adequate amount of time to prepare. Blocking a dedicated, consistent amount of time on your weekly calendar to lay the groundwork for each employee’s session is essential.  Scheduling a regularly set time allows you to concentrate on preparing for that particular employee’s evaluation.  Do not rely on memory about what you want to discuss with each member of your team. Content that you want to discuss with each employee should be written down and used as your guide in the review session. In the HR world, keeping a written record of important meetings is a standard task, and a performance review session is no different. 

How to Prepare

During the manager’s blocked preparation time, there are several actions to complete. Review the employee’s job description. Is the employee completing the required portions of their role?  Is the employee doing what they need to do?  Identify areas of strength and weakness and reflect on those areas. Recall and list specific examples that demonstrate their strengths and weaknesses. Encourage employees to keep track of their accomplishments throughout the year. 

While managers are expected to be aware of their employees’ accomplishments and challenges, that does not always occur. When an employee assembles a comprehensive list of what they feel they have done well and what they could have improved upon, that adds more depth to the conversation between manager and employee. Encourage the employee to share the document prior to the meeting if they feel comfortable so you can expand upon their content. Another method of ensuring managers get timely and insightful perspectives about an employee’s performance is to collect 360 degree feedback. This gives a manager intuitive perceptions from an employee’s peers. As well as how the employee perceives themselves regarding the employee’s performance.

Conducting Performance Review

Be empathetic and positive in tone with the employee. Even for the most productive and satisfied employees, end-of-the-year reviews often create anxiety and undue stress. Communicate the event as a way to strategize for future professional growth. Instead of it being a do-or-die reflection of the year’s performance.  Evaluate the progress the employee has or has not made towards performance goals established at the beginning of the year.  End-of-the-year performance reviews should be highly data driven. Use data and facts as evidence when stating your perspectives and claims. Include specific examples of successes and list area(s) in which the employee should seek to improve.  If no goals were formally discussed and recorded at the beginning of the year, reflect on the employee’s performance for 2024 and take the time to set goals for 2025.   

Ask Questions

Ask questions to the employee. Examine what career paths the employee envisions themselves following.  Is this employee one that could be a future leader within the organization? Suggest opportunities for the employee to use specific skill sets that are being underutilized.  Discuss career progression opportunities and outline ways that the employee can advance within the company. While certain employees would make great managers, some employees simply do not want to take on advancement opportunities.  Ask probing questions in a kind manner as to why the employee might not want to pursue advancement opportunities. It is important to keep quality talent so if an employee does not want to take a management role, find other opportunities to keep the employee productive, content and engaged. A skilled employee with people skills can make a great internal mentor to new employees and for employees who need to refine their performance. 

Be prepared for financial discussions especially if raises are allocated during the end-of-the-year review.  Companies walk the tightrope of maintaining a competitive bottom line in profits while trying to provide a competitive compensation package. Communicate reasons to the employee why raises were the amount they were. Explain what needs to be accomplished to acquire raises at the next tier. If you sense the employee is discouraged about their compensation, ask the employee what they are seeking in pay and benefits. Do not promise what you cannot deliver. However you should be aware of their needs to see if there are ways to retain valuable talent before they seek to leave for the competitor. 

Finishing Performance Review

Before the review ends, ask the employee what support and resources the employee needs from you, the manager, so they can perform better. Would additional training help grow the employee?  There might be actions or lack of actions that the employee needs you to improve upon that you did not realize impacted the team. Before concluding the review, confirm the employee’s understanding of the conversation. Ask the employee their thoughts and what stood out the most to them from the review.  Recap action items for the employee and for yourself before closing the meeting. Send an email after so you have the plan in writing. Do not end the meeting without having a mutual understanding of the employee’s strengths, areas for growth and goal plans for the next year in place. 

Conclusion

The end-of-the-year review is not just about the employee, but it is about you, the manager, too. Clear communication eliminates many conflicts and provides a distinct path of action items that must occur.  Learning what actions, or even lack of actions, that you can do becomes a catalyst for self-improvement which benefits the whole team.  That candid feedback about your own performance can ignite change. This can help you be a better manager, performer and leader as well. Use the end-of-the-year performance review process to grow your team and yourself.