How to conduct a performance review
Performance reviews are an opportunity to recognise achievements, address concerns, and set goals for growth. Done well, they motivate employees and improve team performance. Done poorly, they demotivate and waste everyone's time.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about conducting performance reviews for Australian businesses. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
What is a performance review?
A performance review (also called an appraisal or evaluation) is a formal meeting between a manager and employee to discuss job performance, achievements, areas for improvement, and future goals. It's an opportunity to provide feedback, recognise good work, and align individual objectives with business goals.
According to Fair Work Australia, effective performance management involves setting clear expectations, providing regular feedback, and addressing issues constructively before they escalate. Regular performance reviews are also recommended by the Australian HR Institute (AHRI) as essential for employee management and development.
Sample performance review plan
Here's what a typical performance review discussion plan looks like with the key sections highlighted.
Performance review discussion plan
Employee: _________________ Manager: _________________
1. BEFORE THE DISCUSSION
What were the employee's goals and how did they perform?
What has the employee done well?
What could the employee do better?
2. DURING THE DISCUSSION
How does the employee view their performance?
Any feedback or concerns from the employee?
Career goals discussed:
3. AGREED OUTCOMES
Goals for next review period:
Support to be provided:
A typical performance review plan includes:
- Before — Goals, achievements, areas for improvement
- During — Employee perspective, feedback, concerns
- Career — Goals and aspirations discussed
- Outcomes — New objectives agreed
- Follow-up — Support and next review date
Before, during, and after the review
Effective performance reviews require preparation before, focus during, and follow-through after.
Before
Gather data, review objectives, and prepare specific examples. Request employee self-assessment.
Time: 1-2 hours preparation
During
A two-way conversation reviewing performance, discussing concerns, and setting goals together.
Time: 45-60 minutes meeting
After
Document agreements using a performance review template, follow through on commitments, and track progress toward new goals.
Time: 30 mins + ongoing
Keep it separate from salary discussions
Performance reviews should focus on development and growth, not compensation. When salary is on the agenda, employees focus on justifying their pay rather than genuinely discussing development. Handle pay reviews in a separate meeting.
Performance review preparation checklist
Complete these items before the review meeting to ensure a productive discussion.
Job description reviewed
EssentialConfirm current role and responsibilities
Previous objectives reviewed
EssentialCheck goals set in last review
Performance examples gathered
EssentialSpecific achievements and areas for improvement
Self-assessment received
EssentialEmployee has completed their self-appraisal
Colleague feedback collected
360-degree feedback if applicable
Meeting room booked
EssentialPrivate, quiet space with no interruptions
Agenda prepared
Structure for the discussion
Development options researched
Training courses, mentoring, projects available
Next objectives drafted
Proposed goals for discussion
Documentation template ready
EssentialForm to record discussion and agreements
Three ways to manage performance reviews
Each method has trade-offs. Here's how they compare.
Manual process
Paper forms, handwritten notes, and email. Works but is time-consuming and inconsistent.
Best for: Very small teams (1-5 staff)
Pre-made forms and checklists. More structured but still requires manual tracking.
Best for: Small teams getting started
Automated workflows, goal tracking, and centralised records. Professional and efficient.
Best for: Growing teams (5+ employees)
How to conduct a performance review
Follow these steps to deliver effective, constructive performance reviews.
Prepare and gather data
Before the meeting, collect all relevant information about the employee's performance throughout the review period.
Key actions:
- Review the employee's job description and objectives from their last review
- Collect specific examples of achievements and areas for improvement
- Gather feedback from colleagues or team members if relevant
- Review any notes you've made during the performance period
Request employee self-assessment
Have the employee complete a self-appraisal form before the meeting to understand their perspective.
Key actions:
- Send the self-assessment form at least a week before the review
- Ask them to rate how well they achieved their objectives
- Request they identify their strengths and areas for improvement
- Have them note any issues or concerns they want to discuss
Set the tone and structure
Start the meeting positively and explain that this will be a two-way conversation focused on growth.
Key actions:
- Begin with pleasantries to put the employee at ease
- Explain that this is a collaborative discussion, not a one-way lecture
- Clarify that salary discussions are typically handled separately
- Outline the meeting structure and expected outcomes
Review past performance
Go through previous objectives and discuss what was achieved, what was not, and why.
Key actions:
- Acknowledge specific achievements and give recognition where deserved
- Use concrete examples rather than vague generalisations
- Discuss any objectives that were not met and explore the reasons
- Ask the employee for their perspective on their performance
Discuss career goals and development
Talk about the employee's future aspirations and how they align with organisational goals.
Key actions:
- Ask about their career progression plans and aspirations
- Identify skills gaps and training needs
- Discuss how their role contributes to wider business objectives
- Explore opportunities for growth within the organisation
Set objectives and follow up
Agree on clear goals for the next review period and document everything discussed.
Key actions:
- Set SMART objectives (Specific, Measurable, Achievable, Relevant, Time-bound)
- Agree on support you will provide (training, resources, mentoring)
- Document all agreements and have the employee sign the notes
- Schedule the next review date and any interim check-ins
Performance review tips
Follow these principles for reviews that actually improve performance.
Be specific
Use concrete examples and measurable outcomes, not vague statements like "good job".
Listen actively
Give the employee time to respond without interruption. Ask open-ended questions.
Focus on growth
Frame feedback constructively. The goal is development, not criticism.
Be objective
Base feedback on facts and observed behaviours, not personal opinions or hearsay.
Document everything
Write up notes immediately after the meeting and share with the employee.
Follow through
Deliver on any commitments you make for training, support, or resources.
Handling difficult conversations
Sometimes you need to deliver uncomfortable feedback. Here's how to do it constructively:
Manage reviews with RosterElf HR hub
What takes hours manually can be done in minutes with the right HR software.
Track goals year-round
Set objectives and track progress throughout the year, not just at review time.
Automate self-assessments
Send digital self-assessment forms automatically before review meetings.
Centralise documentation
All review notes and agreements stored securely in one place.
Never miss a review
Automated reminders ensure reviews happen on schedule.
No credit card required
Feature comparison
See exactly how each performance review method stacks up across key features.
Preparation time
Goal tracking
Self-assessment
Historical data
Progress tracking
Reminders
Report generation
Consistency
| Feature | Manual | Templates | HR software |
|---|---|---|---|
| Preparation time | 2-4 hours | 1-2 hours | 30-60 minutes |
| Goal tracking | Manual notes | Spreadsheet | Automated tracking |
| Self-assessment | Paper form | Email/Word doc | Digital forms |
| Historical data | Filing cabinet | Shared drive | Centralised records |
| Progress tracking | Ad hoc notes | Spreadsheet | Real-time dashboard |
| Reminders | Calendar only | Manual | Automated alerts |
| Report generation | Manual | Semi-manual | One-click reports |
| Consistency | Variable | Better | Standardised process |
Common performance review mistakes
Learn from others' errors. These mistakes lead to unproductive reviews and demotivated employees.
No preparation before the meeting
Consequence: Vague feedback that lacks specific examples, leaving the employee confused about expectations
Solution: Gather data throughout the review period and prepare specific examples before the meeting performance tracking
Making it a one-way conversation
Consequence: Employee feels unheard and disengages from the process
Solution: Request self-assessment beforehand and actively listen during the meeting self-assessment forms
Focusing only on recent events
Consequence: Recency bias leads to unfair assessment that ignores earlier achievements or issues
Solution: Keep notes throughout the year and review the entire performance period performance notes
Avoiding difficult conversations
Consequence: <a href="/guides/how-to/create-a-pip" class="text-primary-700 hover:text-primary-800 underline">Performance issues</a> and <a href="/guides/how-to/write-a-warning-letter" class="text-primary-700 hover:text-primary-800 underline">conduct concerns</a> go unaddressed and worsen over time
Solution: Prepare how to deliver constructive feedback sensitively and focus on solutions workplace policies
No follow-up after the review
Consequence: Agreed actions are forgotten, objectives are not tracked, and nothing changes
Solution: Document everything, schedule check-ins , and follow through on commitments
Industry-specific performance review guidance
Tailored advice for conducting performance reviews across different Australian industries.
Hospitality & cafes
Key focus areas:
- Customer service skills and complaint resolution
- Speed of service during peak periods
- Teamwork in fast-paced environments
- Hygiene and food safety compliance
Tip: Schedule reviews during quieter periods and keep them brief (30-45 minutes). Focus on specific customer feedback examples and peak period performance. For casual staff with irregular hours, consider quarterly check-ins rather than annual reviews.
Healthcare & aged care
Key focus areas:
- Clinical competency and certification maintenance
- Patient care quality and safety incidents
- Compliance with health regulations and protocols
- Communication with patients, families, and team
Tip: Document all reviews thoroughly as they may be required for regulatory audits. Include certification renewal dates and mandatory training completion. For registered nurses and other licensed professionals, align reviews with professional development requirements.
Retail & supermarkets
Key focus areas:
- Sales performance and upselling techniques
- Product knowledge and customer engagement
- Cash handling accuracy and stock management
- Attendance and reliability during peak trading
Tip: Balance sales targets with customer service quality—avoid focusing solely on numbers. High turnover means more frequent reviews; consider 90-day reviews for new hires. Acknowledge seasonal performance variations and reward reliability during peak periods like Christmas and sales events.
Childcare centres
Key focus areas:
- Child safety and supervision ratios
- Early childhood education qualifications currency
- Parent communication and relationship building
- Regulatory compliance and documentation
Tip: Performance reviews must include evidence of current Working with Children Checks, first aid certificates, and childcare qualifications. Document compliance with National Quality Framework requirements. Reviews are critical evidence if regulatory issues arise, so maintain thorough records.
Industry-specific compliance note
Different industries have different compliance requirements for performance documentation. Healthcare and childcare have stricter audit requirements than hospitality or retail. Check your industry's Modern Award for specific requirements around probation reviews, notice periods for performance management, and mandatory feedback timelines.
Download free performance review templates
Get started with our library of free HR templates. Written by HR experts, ready to customise.
Frequently asked questions about conducting performance reviews
- A performance review should contain: a review of the employee's job duties and responsibilities, an evaluation of how well they performed against their objectives, specific examples of achievements and areas for improvement, agreed goals for the next review period, and any support or training needed to achieve those goals.
- Most organisations conduct formal performance reviews annually or bi-annually. However, best practice suggests supplementing formal reviews with regular check-ins (monthly or quarterly) to provide ongoing feedback and address issues before they become problems. New employees often benefit from reviews at 3 and 6 months during their probation period.
- The five key steps are: (1) Planning and preparation - gathering data and reviewing past objectives, (2) Self-assessment - having the employee evaluate their own performance, (3) The review meeting - a two-way conversation about performance, (4) Goal setting - agreeing on objectives for the next period, (5) Follow-up - documenting agreements and tracking progress.
- Prepare in advance how to deliver difficult feedback sensitively. Focus on specific behaviours and outcomes rather than personality. Use concrete examples. Listen to the employee's perspective and involve them in finding solutions. Stay calm and professional, and document the discussion.
- Yes, employees can refuse to sign. However, signing typically means they have received and discussed the review, not that they agree with it. Allow employees to add written comments if they disagree, and note their refusal to sign. Document that the review was conducted and discussed regardless of signature.
Regulatory sources
This guide is aligned with official Australian workplace regulations on managing performance.
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