Developing a performance review checklist

The following checklist has been created to help you set up a performance system in your business.

Step 1: Plan employee performance goals

Look at your business goals for the year ahead. Think about individual performance goals for each employee that will help your business reach its goals.

Employee performance goals should be

  1. Balanced and comprehensive across the role
  2. Linked to the business goals so they provide a direct line of sight between employee and business goals
  3. Controllable and influenceable by the role holder, and
  4. Manageable in number.

Create a performance agreement template. You can use our performance agreement template.

Prepare some dot points before the meeting to help remember what you want to cover with each employee.

Step 2: Discuss and ask for feedback from the employee

Meet with each employee to discuss their individual goals – these should be SMART - specific, measurable, achievable, results oriented and time framed.

Agree on and record these goals in a performance agreement, along with the support you’ll provide to help the employee reach their goals (e.g. training).

Both you and the employee should keep a copy of the employee’s performance agreement.

Step 3: Monitor the employee’s progress

Monitor your employee’s performance and support them while they work towards their goals. Goals should never be rigid and should change as the business needs change.

Give regular feedback (both positive and constructive) to the employee, and deal with any performance issues as soon as them come up. It is advisable to conduct at least one interim review during the year, so that there are no surprises come the end of year review.

When giving feedback you may want to consider:

  1. How the employee is tracking against goals?
  2. What has been achieved/completed to date?
  3. What still needs to be done?
  4. Are any modifications required due to changed circumstances?

Think about how you present the feedback to the employee, so that it is taken in a constructive manner.

Give constructive feedback.

Step 4: Performance Review Meeting

Conduct a review with each employee at least annually to assess their performance against their goals and set goals for the new performance cycle.

Ensure that a meeting time and place has been arranged.

Assess the employee’s performance against each goal.

Review the year’s personal training & development plan.

Prepare specific examples to support your view.

Consider any changes to goals for next year.

Consider the employee’s training & development needs for next year.

Finally, agree on and record goals for the next performance cycle (these might be the same goals or new ones) in a new performance agreement.

The information contained in this document is general in nature. You must not rely on the information in this document as an alternative to legal advice from an appropriately qualified professional. If you have any specific questions you should consult one of our HR Professionals.