Frida Gustafsson
Frida works as a Payroll Consultant & Junior HR Advisor at Azets.
A performance review is one of the most important tools for creating clarity, engagement and development within an organisation. It gives both employees and managers the opportunity to reflect on the current situation, review goals and ensure the right conditions are in place for success going forward.
A well-conducted performance review is a structured dialogue that contributes to both individual and organisational development.
An effective performance review typically consists of three parts:
- A review of the past (how have things gone?)
- An assessment of the current situation (what does the situation look like today?)
- A forward-looking discussion (future goals, development and needs)
The conversation should be clearly linked to the organisation’s goals and priorities.
Below, we have gathered five tips for employees and five tips for managers to help create a review that truly makes a difference.
5 tips for the employee
- A successful performance review begins with your own preparation. Reflect on how you feel in your role, what drives you and when you perform at your best. Consider both your current work situation and your long-term career plans.
- Understand the organisation’s goals and strategy. By understanding the bigger picture, it’s easier to see how your work contributes to the organisation’s development.
- Carry out an honest evaluation of your performance. What is expected of you in your role? What has worked well, and which development areas do you see? Consider whether you have skills that are not being fully utilised or whether there are areas where you need to strengthen your knowledge.
- Prepare the discussion points you would like to raise during the review. A performance review is a forum where you are expected to be active, raise questions and contribute to the dialogue. The better prepared you are, the more value you and your manager will gain from the conversation.
- Establish a solid framework for following up on your development, with a small number of concrete actions, clear deadlines and defined responsibilities. This makes expectations clear and helps identify the resources you need to achieve your goals.
5 tips for the manager
- A successful performance review requires structure, preparation and a clear purpose. Schedule the review well in advance, ideally one to two weeks ahead. Be sure to share relevant discussion topics beforehand so that the employee has time to reflect and prepare. Prepare yourself by reviewing previous goals, performance, development areas and any earlier feedback.
- Create the right conditions for the review. Hold the meeting in a neutral and undisturbed setting, and allow sufficient time for the discussion. Begin by clearly explaining the purpose, structure and expectations of the review.
- Remember that the manager leads the conversation, but the focus should be on the employee. Listen actively, ask open-ended questions and create space for an open dialogue. Ensure that you cover the key areas: performance in relation to goals, workload and work environment, collaboration, job satisfaction, and future development and competence needs.
- Be clear in your feedback and use the performance review as part of building a culture of feedback. Highlight what is working well and give praise. If you manage to create an environment where giving praise is natural, it will lead to better results. Of course, that does not mean you should wait until the review to show your appreciation, but use the review as an opportunity to reinforce it.
- At the same time, be transparent about development areas and expectations going forward. Conclude the review by summarising what has been agreed. Document goals, actions and responsibilities, and decide how and when follow-up will take place. It is only through follow-up that the review will have a real impact.
Important things to keep in mind
Performance reviews should be conducted at least once a year and complemented by ongoing follow-up discussions throughout the year.
It is also important to distinguish between a performance review and a salary review. A performance review focuses on future development, while a salary review focuses on performance in relation to pay.
A well-conducted performance review is not a one-off meeting. It is part of an ongoing dialogue that creates clarity, engagement and long-term development.