EMPLOYER'S GUIDE TO PERFORMANCE REVIEWS

Performance reviews are often misunderstood as tick-box exercises or annual formalities. In reality, when strategically implemented, they are one of the most powerful tools an employer can use to improve productivity, accountability, and workplace morale.

Why Performance Reviews Matter

Every business relies on consistent performance. But still, employers often avoid difficult conversations until performance issues escalate into conflict.

A structured performance review process helps to:

• Identify underperformance early, before it becomes entrenched.

• Reward employees who exceed expectations, reinforcing positive behaviour.

• Clarify exactly what is expected, removing any ambiguity about roles or standards.

• Differentiate between inability and unwillingness, which is essential when choosing between support and discipline.

• Create a documented history of efforts to assist the employee, which is vital for legal compliance in cases of incapacity or dismissal.

Ultimately, performance reviews protect both the company and the employee — provided they are handled fairly and consistently.

The Core Purpose and Desired Outcome

A performance review is not designed to “catch employees out.” Its true purpose is to evaluate whether an employee can meet the required standard - with guidance and support or whether deeper intervention is required.

Every performance review should conclude with clarity in one of three directions:

1. The employee is performing satisfactorily - acknowledge and possibly reward.

2. The employee needs support or correction - implement a structured improvement plan.

3. The employee fails to meet the standard despite support - escalate to incapacity or disciplinary processes.

The goal is always correction before consequence. But when correction fails, employers must be willing to take decisive action.

The Performance Review Process - Step by Step

1. Assess and Prepare

Before engaging the employee, gather factual information such as:

• Productivity records, attendance logs, sales figures, or client feedback.

• Examples of both strengths and shortcomings.

• Previous discussions or warnings (if any).

Document everything, verbal complaints are not considered valid evidence in disputes.

2. Conduct the Review Meeting

Hold a private, structured conversation. During the meeting:

• Clearly explain what areas of performance are lacking, using specific examples.

• Reinforce what standard is required and why it matters to the business.

• Allow the employee to respond, they may reveal obstacles you were unaware of.

• Keep the discussion factual, not personal.

Avoid vague statements like “You need to improve”. Instead, use measurable criteria such as “You are currently calling 5 clients per day; the minimum standard is 10.”

3. Implement a Performance Improvement Plan

If improvement is needed, create a formal plan containing:

Element	Description
Specific Goals	Clearly defined performance targets
Support Offered	Training, mentorship, or resources
Timeframe	Typically 30–90 days depending on role
Monitoring Process	Scheduled check-ins or reports
Consequences for Non-Compliance	Clarify what will follow if no improvement occurs

The employee must understand that the plan is not optional but rather a monitored commitment.

4. Monitor Progress and Record Everything

Provide support but remain firm. Hold feedback sessions, record improvement (or lack thereof), and adjust plans where reasonable.

• If progress is satisfactory, confirm in writing and close the matter.

• If progress is partial, extend the plan, depending on effort and attitude.

• If there is no cooperation or change, escalate formally.

When Performance Does Not Improve — What Are Your Options?

If an employee fails to meet the required standard despite clear opportunity and support, an employer may take further action.

Scenario	Next Step
Employee refuses to comply or displays poor attitude	Treat as misconduct → Proceed to disciplinary action.
Employee is genuinely unable to perform despite trying	Treat as incapacity (poor performance) → Follow a formal incapacity process.
Employee is better suited to another role	Consider redeployment or demotion (with consent where required).
No reasonable alternative exists	Proceed with termination - following fair procedure.

It’s important to note that employers are not forced to retain non-performing employees, as long as the process is fair, well-documented, and corrective steps were taken.

Performance reviews are not just administrative tasks, they are leadership tools. They allow you to strengthen good workers, rehabilitate struggling ones, and remove those who refuse to improve.

Handled correctly, they create a workplace culture of clarity, fairness, and accountability, which ultimately benefits the entire business.