Performance reviews: 5 pitfalls to avoid (if you want them to actually work)

Performance reviews: 5 pitfalls to avoid (if you want them to actually work) in summary:

Incorporating the following insights can enhance the effectiveness of performance reviews, leading to improved employee engagement and organisational performance:

• Avoid personality-based feedback: Ensure that performance reviews focus on objective performance metrics rather than personal biases or personality traits.
• Foster two-way communication: Encourage open dialogue during appraisals, allowing employees to share their perspectives and aspirations, making the process more collaborative and effective.
• Establish clear action plans: Conclude reviews with specific, measurable objectives and agreed-upon development plans to ensure accountability and continuous improvement

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Let’s be honest: most managers don’t wake up thrilled about doing performance reviews.

In fact, a lot of employees feel the same! The idea of sitting down for an annual chat where your every flaw might be dissected? Not exactly a calendar highlight… But here’s the thing: performance reviews don’t have to be painful. Done right, they can be motivating, empowering, and genuinely helpful for both sides of the table. It’s all about the how.

In a world where talent retention is getting tougher and employee expectations are rising, performance reviews are a huge opportunity to boost engagement, build trust, and drive development. According to Gallup, employees who strongly agree that their performance is managed in a way that motivates them are 2.5 times more likely to be engaged at work. Yet only 14% of employees strongly agree their reviews inspire improvement.

So, how can HR help managers prepare for performance reviews that feel more “great conversation” and less “awkward interrogation”?

Let’s look at five common pitfalls to avoid, and how to get them right.

1. Basing feedback on personality, not performance

Let’s face it: you’re not going to click with everyone on your team. Some employees will be super easy to manage; others may get on your nerves. That’s just human nature.

But, when it comes to performance reviews, personal biases must stay at the door. It’s easy to let personal friction colour your feedback, even unintentionally. That’s why it’s crucial to ground appraisals in facts, outcomes, and behaviours, not feelings.

Ask yourself:

• Are you reacting to someone’s results, or just their style?
• Can you back up your feedback with examples?
• Are you holding everyone to the same standard?

If not, it’s time to course-correct. A structured review framework and clear performance criteria help keep things objective and fair.

2. Making it a one-way monologue

Performance reviews shouldn’t feel like a lecture. Yet too often, they turn into exactly that: the manager talks, the employee nods, and both walk away slightly unsatisfied.

The best performance reviews are two-way conversations. Yes, managers need to share feedback and set goals. But employees also need space to reflect, respond, and share their side of the story.

Encourage your managers to:

• Ask open-ended questions (“What’s been your biggest challenge this quarter?”)
• Explore career goals (“Where do you see yourself growing in the next year?”)
• Talk about support (“What do you need more of from me?”)

This kind of dialogue builds trust, and gives you real insights into what really drives your people.

3. Focusing only on what’s going wrong

Too many performance reviews start with a compliment… and then go full steam into a list of what’s gone wrong. That “glass half-empty” mindset isn’t just disheartening, it’s also counterproductive. According to a study by Harvard Business Review, positive feedback is one of the top predictors of high-performing teams.

Now obviously, that doesn’t mean ignoring poor performance. But it does mean balancing tough feedback with genuine recognition. Instead of asking, “What do they need to fix?” try asking, “What are they already doing well, and how can we help them do more of it?”

Your employees are more likely to respond to growth-focused feedback than to criticism alone. Celebrate wins, spotlight strengths, and look for ways to help people build on what they’re already great at.

4. Being vague or fluffy

There’s nothing worse than walking out of a performance review with no clue what just happened. “You need to improve your communication” might sound like useful feedback… but it leaves employees guessing about what to actually do.

Here, specificity is your friend. So, ditch general comments for clear examples, like:

• Instead of: “You need to improve client relationships.”
• Try: “In the last project meeting with Client X, they seemed unclear on the next steps. Next time, try following up with a written summary right after the meeting.”

The clearer and more actionable your feedback, the more likely it is to drive change. And don’t forget to give clear praise, too. “You did a great job” is nice, but “Your handling of the Q2 product launch was outstanding, especially your leadership during the tight turnaround” is better.

5. Failing to follow through

A performance review isn’t a one-and-done event. It’s a stepping stone to future performance, and that means there has to be a plan.

Employees should leave their review knowing:

• What’s expected of them
• What support they’ll get
• When and how progress will be checked

Work with them to create a practical, personalised action plan as part of your overarching performance management programme. Include SMART objectives (Specific, Measurable, Achievable, Relevant, Time-bound), development goals, and follow-up check-ins. Then use your HRIS – ideally with an integrated performance management software – to document and track it all, so nothing falls through the cracks.

According to ClearCompany, 68% of employees who receive accurate and consistent feedback feel fulfilled in their jobs… but just 29% say they actually get that kind of feedback. Something to bear in mind!

From dreaded to valuable

Performance reviews don’t have to be formal, painful, or overly time-consuming. With the right approach, they can become one of your most valuable HR tools for boosting motivation, retaining top talent, and shaping a stronger company culture.

So, whether you’re revamping your review process or coaching managers on best practice, remember: keep it fair, make it collaborative, focus on strengths, be specific, and always follow up. After all, when performance reviews work, everyone wins.