Quick Answer: What Should a Performance Review Include?
An effective performance review should cover a review of objectives from the previous period, an assessment of competencies and behaviours, a discussion of development needs and career aspirations, and the setting of new SMART objectives for the next period. It should be a two-way conversation, not a one-sided lecture.
| Review Component | Time Allocation | Purpose |
|---|---|---|
| Previous objectives review | 25% | Assess what was achieved and why |
| Competency and behaviour assessment | 25% | Evaluate how objectives were achieved |
| Development discussion | 25% | Identify growth areas and support needed |
| New objectives setting | 25% | Agree clear goals for the next period |
Performance Review Template
Section 1: Employee Details
| Field | Detail |
|---|---|
| Employee name | |
| Job title | |
| Department | |
| Manager | |
| Review period | |
| Review date |
Section 2: Review of Previous Objectives
For each objective set in the previous review period:
| Objective | Target | Outcome | Rating |
|---|---|---|---|
| Objective 1 | What was expected | What was achieved | Met / Partially Met / Not Met / Exceeded |
| Objective 2 | What was expected | What was achieved | Met / Partially Met / Not Met / Exceeded |
| Objective 3 | What was expected | What was achieved | Met / Partially Met / Not Met / Exceeded |
Manager comments: Summary of overall performance against objectives.
Employee comments: Employee's own assessment and any mitigating factors.
Section 3: Competency Assessment
Rate the employee against key competencies relevant to their role:
| Competency | Rating (1-5) | Evidence / Examples |
|---|---|---|
| Communication | ||
| Teamwork and collaboration | ||
| Problem solving | ||
| Time management | ||
| Technical skills | ||
| Leadership (if applicable) | ||
| Customer focus |
Rating scale:
- 1 - Unsatisfactory: Consistently below expectations
- 2 - Needs improvement: Below expectations in some areas
- 3 - Meets expectations: Performs the role competently
- 4 - Exceeds expectations: Consistently above expectations
- 5 - Outstanding: Exceptional performance, a role model
Section 4: Development Plan
| Development Area | Action | Support Required | Timeline |
|---|---|---|---|
| e.g., Project management | Enrol in PRINCE2 course | Training budget approval | Q2 2026 |
| e.g., Presentation skills | Present at team meetings | Manager coaching | Ongoing |
Section 5: New Objectives (SMART)
Set 3-5 objectives for the next review period using the SMART framework:
| # | Objective | Specific | Measurable | Achievable | Relevant | Time-bound |
|---|---|---|---|---|---|---|
| 1 | ||||||
| 2 | ||||||
| 3 |
Section 6: Overall Rating and Sign-Off
| Overall Rating | Description |
|---|---|
| Outstanding | Exceptional performance in all areas |
| Exceeds expectations | Consistently performs above the required standard |
| Meets expectations | Performs the role competently and meets objectives |
| Needs improvement | Performance is below expectations in some areas |
| Unsatisfactory | Performance is consistently below the required standard |
Signatures:
- Employee: _____________ Date: _______
- Manager: _____________ Date: _______
How to Run an Effective Review Meeting
Before the Meeting
- Give at least 2 weeks' notice so the employee can prepare
- Ask the employee to complete a self-assessment using the same template
- Review your notes from the period -- do not rely on memory
- Gather feedback from colleagues, clients, or other stakeholders if appropriate (360-degree feedback)
- Book a private room with no interruptions, and allow at least 60 minutes
During the Meeting
- Start positively -- acknowledge achievements and strengths
- Let the employee speak first about their own assessment
- Use specific examples rather than generalisations ("In the Q3 project, you delivered the report 2 days early" not "You're usually on time")
- Focus on behaviours, not personality ("The report contained several errors" not "You're careless")
- Discuss development as an opportunity, not a criticism
- Set objectives collaboratively -- objectives imposed without discussion are rarely motivating
- End with a clear summary of what was agreed
After the Meeting
- Write up the review within 5 working days
- Share with the employee for their comments
- Both parties sign to confirm accuracy
- Store securely in the employee's personnel file
- Follow through on development actions and commitments
Setting SMART Objectives
Poor objectives are the most common reason performance reviews fail to improve performance. Every objective should be:
| SMART Element | Poor Example | Good Example |
|---|---|---|
| Specific | "Improve customer service" | "Reduce average customer complaint resolution time" |
| Measurable | "Do better at sales" | "Achieve £50,000 in new business revenue" |
| Achievable | "Double department output" (with no extra resource) | "Increase output by 15% using the new system" |
| Relevant | "Learn French" (for a UK-only role) | "Complete CIPD Level 5 to support career progression into HR" |
| Time-bound | "Improve eventually" | "By the end of Q3 2026" |
Common Mistakes to Avoid
- Recency bias -- only focusing on the last few weeks rather than the whole review period
- Halo/horns effect -- letting one positive or negative trait colour the entire review
- Avoiding difficult conversations -- skirting around performance problems helps nobody
- No follow-up -- setting objectives and never checking progress until the next review
- Inconsistency -- different managers applying different standards
- Making it a surprise -- if the review is the first time an employee hears about a problem, you have already failed as a manager
- Linking reviews directly to pay -- this can make the conversation about money rather than development
Review Frequency: Annual vs Continuous
| Approach | Advantages | Disadvantages |
|---|---|---|
| Annual review | Comprehensive, good for career discussion | Too infrequent, relies on memory, stressful |
| Bi-annual (6 monthly) | More timely feedback, better objectivity | Still relatively infrequent |
| Quarterly reviews | Timely, actionable, builds review culture | Time-consuming if too formal |
| Continuous feedback + annual review | Best of both worlds | Requires management discipline |
Best practice: Combine regular informal check-ins (monthly or bi-weekly) with a formal annual or bi-annual review. The formal review should contain no surprises if regular feedback has been given throughout the year.
Using Grove to Run Performance Reviews
Grove provides built-in performance review templates, automated scheduling, and secure document storage. Set review cycles, track objectives, and ensure every manager completes reviews on time.
Get started with Grove and simplify your performance review process.
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The Grove Team
Grove HR
The Grove Team writes about HR best practices, compliance, and workplace culture for Grove. Helping UK businesses cultivate thriving teams.
