What should be the focus of an effective performance review?

The focus of an effective performance review should be on areas of strength and necessary improvements. This approach encourages a constructive dialogue between the reviewer and the employee, aiming to highlight not only what the employee does well but also where there is room for growth. By identifying strengths, the review can help reinforce positive behaviors and skills that the employee can continue to develop and leverage. Simultaneously, addressing necessary improvements provides a clear path for professional development, ultimately leading to enhanced performance and productivity.

This balanced approach fosters a supportive environment, where the employee feels recognized for their accomplishments while also being given specific feedback on where they can enhance their skills or modify their behavior. Such a focus on development helps to establish goals and expectations for future performance.

In contrast, focusing primarily on future salary disputes and promotions tends to create tension and may detract from the original intent of the review process. Recognizing only above-average performance can exclude opportunities for improvement among average or below-average performers, potentially maintaining status quo rather than striving for overall growth. Lastly, addressing the reduction of staffing levels in a performance review is inappropriate and counterproductive, as it can demoralize employees and does not contribute to individual or team development.