Positive performance reviews
Simple, practical tips for small businesses
In the second of three articles focusing on people management for small businesses, Sarah Armstrong, Senior HR Consultant (Worksphere) at Lewis Silkin LLP and Arboricultural Association Trustee, offers tips for carrying out performance reviews.
Performance reviews don’t have to be a once-a-year ordeal. Done well, they are regular, short conversations that help people do their best work and support your business growth. Here are practical dos and don’ts to keep them positive, relevant and low-admin.
Do
Meet regularly. Little and often is easier and more effective than an annual ‘big’ meeting.
Set a simple agenda. Agree a few headings in advance so both sides can prepare. Keep it flexible and human, not box-ticking.
Start with ‘How are you?’ Ask how things are going overall, not just output. Touch on wellbeing, workload, relationships and career goals.
Focus on the role, not just results. What’s going well? What’s hard? Which skills would make the biggest difference? A current job description helps here.
Agree support and development. Training might be an option, but so are better tools, clearer priorities, more feedback or flexibility.
Keep pay separate. Salary and bonus deserve their own process. Mixing them into reviews can shut down honest conversation.
Equip managers. Coaching, listening and giving constructive feedback are core skills. Confident managers will ensure conversations are productive.
Encourage ownership. Ask employees to book the next review and capture key points. It builds accountability and momentum.
Write down the essentials. Note decisions, agreed actions and timelines. An audit trail is important but don’t get hung-up on form-filling – the quality of the conversation matters more than ticking boxes.
Be consistent and fair. Use the same simple process across teams, making reasonable adjustments where needed.
DON’T
Don’t cancel unless you must. It signals the person (and the process) isn’t a priority.
Don’t turn it into task management. Keep day-to-day work planning in regular check-ins; use reviews for performance and development.
Don’t dwell too much on the past. Include some reflection, then focus on what’s next and how to get there.
Don’t dominate the airtime. Let the employee do most of the talking. Open questions help.
Don’t force ‘SMART’ targets where they don’t fit. For many roles, ‘priorities’, ‘key outcomes’ or ‘focus areas’ are more realistic and motivating.
Don’t ignore follow-through. No notes, no actions, no change – close the loop at the next meeting.
By keeping reviews regular, human and forward-looking – and by capturing the essentials without bureaucracy – you’ll build performance, engagement and trust, while reducing people-risk.
In the next issue: Saying goodbye? – Ten practical tips for small businesses
This article was taken from Issue 213 Summer 2026 of the ARB Magazine, which is available to view free to members by simply logging in to the website and viewing your profile area.