What matters in a performance review
The webinar with Factorial focused on termination meetings. My experience from more than 20 years in HR: many departures are signalled months in advance. During the annual appraisal. Between the lines.
The figures back this up. According to Gallup, only 14 per cent of employees say that their performance review motivates them to improve. And according to a 2025 study by the Königsteiner Group, 13 per cent of employees are actively looking for a new job because of poor feedback processes. The staff appraisal therefore plays a key role in determining who stays.
You’ll find the procedure, checklist and performance review templates in my free guide below. Here, we’re focusing on the core of the matter: how you speak, ask questions and listen.
Tip 1: Make the most of the first two minutes
The opening sets the tone for the whole conversation.
- Sit in the corner, close your laptop, and put your documents to one side.
- Start on a personal note, with a touch of humour: “If your year were a film title, what would it be?” (if appropriate)
- Explain the purpose of the conversation: “Today is all about you. I’m here, above all, to listen.”
Time is your most important signal here: 23 per cent of employees feel that their manager doesn’t have enough time for the conversation (Königsteiner 2025). Allow plenty of time – 60 to 90 minutes.
Tip 2: Ask more questions than you speak
Those who ask questions lead. Open-ended questions elicit stories; closed questions elicit ‘yes’ or ‘no’ answers.
- “Tell me, how has your year been?”
- “What’s given you energy?”
- “What would you need to do to make things even easier?”
And then: hold the silence. Count to seven in your head. The best answers come after the silence.
Tip 3: Specific praise
“It’s fine, anyway.” The highest form of praise in Austria. It’s about as motivating as a thumbs-up emoji.
Good praise has four parts:
- What exactly: “Your presentation to client X …”
- What effect: “… secured us the contract.”
- What value it fulfils: “That shows just how important our clients are to you.”
- Thanks: “Thank you for that.”
Bonus: “Which part of that would you like to do more often?” That’s how praise turns into development.
Tip 4: Giving feedback using observation, impact and a request
Feedback is effective when it is specific and offers a way forward.
- Observation: “I haven’t heard much from you in the last three meetings.”
- Impact: “As a result, your ideas aren’t getting the attention they deserve within the team.”
- Request: “I’d like you to present your suggestion at the next project meeting. What do you need to do that?”
Describe behaviour. Avoid labels such as “reserved” or “inflexible”.
If the conversation tips into conflict, my 6 tips for solution-focused conflict management will help.
Tip 5: Ask for a summary
You can tell if something has been understood when the other person repeats it in their own words.
- “What have you taken away from our conversation?”
- “How did you find today’s conversation?”
- Then summarise the agreements and put them in writing.
There’s a lot of potential here: only 52 per cent of employees receive meeting minutes. And only 26 per cent find that all agreements are actually implemented (Königsteiner 2025).
Ensuring people understand, are willing and able. For me, that is the essence of good leadership communication.
Bonus: Keep the dialogue going
According to Gallup, employees who receive weekly feedback are 2.7 times more likely to be engaged than those who receive feedback once a year. Short check-ins every few weeks turn the annual appraisal into a genuine dialogue. How this works on video too is in my tips for virtual feedback.
Your performance review guide with templates
Six pages of templates to print out or fill in: a checklist for managers, a guide to the appraisal process with key questions, a preparation sheet for staff, and a record of agreements. Free of charge as a PDF, ready to use straight away.
Frequently asked questions about performance reviews
Is there a free performance review template?
Yes. My guide contains templates for every stage: a checklist for managers, the appraisal process with key questions, a preparation sheet for employees and a record of agreements. You can download it free of charge as a PDF.
How do I prepare for a performance review as a manager?
Schedule the meeting in good time and give the other person the preparation sheet in advance, so you both come to the conversation with your own thoughts. Collect specific examples from the whole year, not just the last few weeks. And find a quiet place with no laptop between you.
How long should a performance review take?
Allow plenty of time, 60 to 90 minutes. Time is your most important signal: if you keep looking at the clock, that says more than anything you put into words.
What belongs in the record of a performance review?
Everything you have agreed: goals, development steps, what support is needed and when you will check in again. Both of you receive the record. You will find a template for it in the guide.
How often should you hold performance reviews?
The annual review is the big picture. In between, short check-ins every few weeks keep the conversation going, so nothing in the annual review comes as a surprise.
Fancy finding out more?
Do you want to get your managers ready for these reviews? In my ‘Leadership Communication’ workshop, that’s exactly what we practise: in an interactive way, with heart, mind and humour. Drop me a line – I look forward to hearing about your project.
Sources
Gallup (2019). More Harm Than Good: The Truth About Performance Reviews. · Königsteiner Gruppe & bilendi (2025). Entwicklungsgespräche und Leistungsbeurteilung in deutschen Unternehmen, 1,073 respondents.
