Template Tuesday: Employee Reviews: A Simple Guide to Doing Them Well

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Employment reviews are part of running a business, whether you lead a team of two or two hundred. Some readers may be locked into company protocols. Others may have put off reviews because they have never done them or because the process feels intimidating. Wherever you fall, the basics are the same.

Reviews are not about bureaucracy. They are about clarity and accountability. When done properly, they become one of the most effective tools for aligning people with the goals of the company. When neglected, they turn into wasted opportunities that leave employees guessing about their standing.

This guide covers the essentials for business owners who are starting from scratch and offers refinements for managers who already have a process in place.

Why Reviews Must Be in Writing

The first rule is simple. Reviews belong in writing.

Verbal reviews are too easy to misinterpret. Even the most thoughtful comments can sound unclear when spoken aloud. A pre-prepared written review, by contrast, fixes the words on paper and makes the manager’s assessment clear.

Writing also allows for checks and balances. A good review should be validated by two people. The employee’s direct supervisor and a representative from HR or another impartial manager. This ensures fairness, accuracy, and accountability on both sides. That system can only work if the review is in writing.

Another benefit is delivery. Managers often struggle with verbalizing hard truths. Putting the review in writing makes that job easier. The words are chosen carefully, reviewed in advance, and backed by another set of eyes.

Writing also protects the company. A written review creates a record that shows consistent standards over time. This matters if performance is ever questioned or if the business faces a dispute. To keep the record useful, include the date, specific examples, clear expectations, a timeline for improvement, and acknowledgment by the employee. Vague notes are not enough.

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The Structure of a Review

Many managers get stuck on what to write. A simple outline solves that.

1. Performance Summary. Begin with a short overview of how the employee has performed since the last review. Keep it factual and neutral.

2. Strengths. Identify what the employee does well. Be specific. General praise means little, but pointing out clear examples carries weight.

3. Areas for Improvement. Address what needs work. Frame these as opportunities rather than failures.

4. Goals. Set clear, measurable objectives for the next review period.

This format provides balance. It avoids the trap of turning a review into either a pep talk or a reprimand.

Making the Process Great: Focus on Value

A review becomes more than a checklist when it revolves around a theme. The simplest and most effective theme is value.

Value comes in two forms.

• Internal Value. How does the employee contribute to the company itself? This might include teamwork, leadership, process improvement, or mentoring.

• External Value. How does the employee contribute to those outside the company? This means customers, vendors, and business partners.

By framing the review around value, the manager highlights the employee’s role in the broader success of the business. For the employee, this approach provides a clear line of sight from their work to the company’s goals.

Managers also find it easier to write reviews when they concentrate on value. Instead of hunting for words, they can ask a straightforward question. What value did this person bring internally and externally over the past year?

Timeliness Matters

Andy Grove, the legendary CEO of Intel, once said: “By putting a review behind other matters, we say, in effect, that evaluating your employees isn’t as important as other things. And that is plain wrong.”

Late reviews are disrespectful. They suggest the employee’s development is less important than whatever else crowded the calendar.

The best solution is simple. Put reviews on the calendar well in advance. Treat the dates as fixed, not flexible. Doing so removes the anxiety of procrastination for both sides. Employees know when their review is coming, and managers avoid the scramble of trying to remember who is due for an evaluation.

Another practice that helps is combining scheduled reviews with regular check ins. Many companies now hold annual or semiannual reviews and supplement them with shorter monthly or quarterly conversations. These check-ins reduce surprises and make the formal review less daunting. They also allow managers to give coaching in real time.

Keep Pay Conversations Separate

One reason reviews stall is that managers tie them to compensation. When money enters the discussion, employees focus on the number and often miss the feedback. Managers also hold back on candor when pay is in play.

The better approach is to separate the conversations. Hold the performance review first. Keep it about development, goals, and value. Then schedule a separate meeting for compensation. This structure leads to clearer feedback and a more focused conversation about pay.

Handling Challenges and Rebuttals

Even a well-crafted review can be challenged. Sometimes an employee disagrees with what was written and submits a rebuttal.

How should a manager respond?

• If the rebuttal adds facts or corrects errors, update the review. Accuracy is more important than pride.

• If the rebuttal is unpersuasive, keep the review as is. The manager has the responsibility to stand by a fair assessment.

What matters most is the conversation. Meet with the employee, discuss their concerns, and listen. Often the rebuttal is less about overturning the review and more about being heard. Listening does not mean changing your mind, but it does mean giving the employee the respect of your attention.

Also remember that in some states, employees have a legal right to add a rebuttal to their personnel file. Massachusetts is one example. If you operate in such a state, the rebuttal becomes part of the record whether you agree with it or not. Every business owner should check the rules in their state and consult counsel if unsure.

What If You Have No HR?

Smaller businesses may not have an HR department. The second reviewer rule should still apply, if at all possible.. In that case, ask a peer manager to co-review. If there are no peer managers, bring in an outside HR consultant for a light second read. The goal is fairness and clarity. The process does not need to become bureaucratic, but it does need to carry credibility. Employees will respect the effort, and owners will gain protection.

Reviews in Context

Not all companies handle reviews the same way. Large organizations often have formal systems with rating scales and required documentation. Smaller businesses may operate without much structure.

If you are constrained by existing protocols, use them but bring clarity and value into the process. If you have no procedures at all, start small with the basics. Put it in writing, cover performance, strengths, areas to improve, and goals, and base everything on value.

Over time you can expand the process, but even the simplest written review sets you ahead of businesses that ignore them entirely.

For First-Time Reviewers

If you have never reviewed an employee before, the hardest step is the first. Begin with a blank page, write the employee’s name at the top, and answer two questions.

1. What value did they bring internally?

2. What value did they bring externally?

From there, fill in the summary, strengths, areas to improve, and goals. Have HR, a peer, or an outside consultant review your draft before delivering it. Then set the date for the next review on your calendar.

Do not worry about producing the perfect review. Focus on clarity, fairness, and respect. The process improves with practice.

For Seasoned Managers

If you already conduct reviews, consider where they may fall short. Are they late? Are they too generic? Do they lack focus on value?

Improving reviews does not require overhauling the process. Small adjustments matter. Writing more specific examples, tightening the link to value, or committing to timeliness can elevate reviews from routine paperwork to meaningful conversations.

The Real Payoff

When reviews are done well, they do more than evaluate performance. They reinforce culture, clarify expectations, and build trust. Employees know where they stand. Managers sharpen their understanding of their team’s strengths and weaknesses.

Most importantly, reviews give employees a chance to connect their daily work to the bigger mission of the company. That sense of purpose is one of the strongest motivators in any workplace.

Start Now

Employment reviews are often delayed, avoided, or treated as chores. But they are one of the few times each year when a manager and employee step back from daily tasks and talk about the big picture.

That conversation deserves to be clear, timely, and rooted in value. Put it in writing, structure it thoughtfully, deliver it on schedule, keep the pay talk separate, involve a second reviewer even if you need to be creative, and handle challenges with respect. Do that, and reviews become not just necessary paperwork but powerful tools for building stronger businesses.

Have an interesting business question and need a free bit of advice? Send your question to [email protected]. No confidential info, please!