Performance reviews are a key component for any organization. When conducted effectively, they provide valuable feedback to employees, helping them understand their strengths and areas for improvement, and aligning their goals with organizational objectives. But what happens if an employee is struggling or underperforming? What can you do? Here are some tips that can help managers/supervisors conduct performance reviews that are constructive, collaborative, and beneficial to support employee growth and development.

1. Prepare before the meeting: The manager/supervisor and the employee should prepare prior to the meeting. The manager/supervisor should gather data on the employee’s performance throughout the review period, including achievements, challenges faced, and areas needing improvement. The employee should reflect on their own performance, identifying accomplishments, challenges and barriers, and goals for the future.
2. Establish a positive environment: Set a positive tone and emphasize that the purpose of the review is to offer a tool for growth and development rather than criticism. Encourage open communication and active participation from both parties. If the employee is underperforming, creating an environment that is open and positive gives the employee an opportunity to feel safe to share barriers, challenges, or feelings for why they may be underperforming.
3. Focus on specific examples: Use specific examples to illustrate points, both positive and negative. Discuss concrete instances where the employee demonstrated exceptional performance or faced challenges. This helps provide clarity and context for feedback.
4. Provide constructive feedback: Feedback should be specific, actionable, and focused on behavior rather than personality traits. Highlight areas of strength and areas needing improvement and provide suggestions for how the employee can enhance their performance. Ask questions such as what about the job motivates you or what do you enjoy about the job? What frustrates you about your job? Are there tools or training needed to do your job well? Do you feel your strengths are being utilized in this role? Is there anything outside of work that may be affecting your performance? These types of questions may provide insight into any challenges or barriers an employee may be faced with, what other aspects of the role motivates them to exceed, or what other skills they may have that aren’t being utilized.
5. Set goals and objectives: Collaboratively establish goals and objectives for the upcoming review period. These goals or objectives can be around something that motivates the employee, or they are passionate about. For the underperforming employee, establish an action plan together. This could include training needed to perform job responsibilities, mentoring, or it could be taking time off to deal with any outside factors that may be affecting them.
6. Discuss career development: Use the performance review as an opportunity to discuss the employee’s career aspirations and development opportunities within the organization.
7. Document the review: Document the key points discussed during the review, including feedback, goals, and action plans. This documentation serves as a reference for future discussions and ensures accountability for both parties.
8. Follow up: Schedule regular check-ins to monitor progress on the goals and action plan discussed during the review. Regular check-ins provide ongoing support to the employee and encourage regular and immediate feedback on how they are doing. Monitor whether they are continuing to face challenges or struggling to perform.

Performance reviews can serve as an effective tool for assessing an employee’s performance and further developing their skills in alignment with both job requirements and organizational objectives. These suggestions aim to assist managers/supervisors in conducting insightful performance reviews with their team members. In addition to the conventional performance reviews conducted by managers/supervisors, it is equally important for organizations to encourage employees to evaluate and provide feedback using a stay interview.

A stay interview encourages conversations between leaders and their employees on a regular basis and assists with 1) identifying aspects of the organization and job responsibilities that are influencing the employee to stay in their current position, 2) exploring ways an organization can better engage the employee in their work, and 3) delving into strategies which mitigate triggers that may cause the employee to consider leaving. To learn more about how this valuable instrument can assist with employee engagement and retention, click here to download the Care Compass Stay Interview Toolkit

Additional Resources:
How to Prepare for a Performance Review in 5 Steps https://www.ellevest.com/magazine/career/performance-review

Managing Underperforming Employees https://www.aihr.com/blog/managing-underperforming-employees/

Framework for Employee Performance Goals https://www.cultureamp.com/blog/employee-performance-goals-examples