The Strategic Business Blog

6 Benefits of Regularly Scheduled Employee Performance Reviews

Posted by Chris Nesbitt

For many business owners, there are only two reasons they conduct employee performance reviews: if an employee requires discipline or deserves a raise.

But a business owner has much to gain when they schedule employee performance reviews on a regular basis (more than the typical annual employee performance reviews).

6 Benefits of Regularly Scheduled Employee Performance Reviews:

  1. Employee Performance ReviewsSitting down with each of your employees more than once a year gives you the chance to communicate to each individual employee what you expect of him (or her). Maybe you require your workers to drive a clean truck and wear a pressed uniform, or greet customers as soon as they walk into your store. This is your chance to ensure he knows what needs to be done to set your company apart from the rest.
  2. Regularly scheduled employee performance reviews provide the perfect opportunity to offer feedback about what the employee needs to improve upon. It allows you to correct bad behavior before it affects your company's bottom line. Simply telling an employee that he is not meeting your standards is not enough. Be sure to give him the training he needs to improve his performance. Consider giving him time to make the change, and check his progress at the next employee performance review.
  3. If you must fire an employee, an employee performance review will offer proof that he knew there was a problem, in case he challenges the termination. In cases like this, it is especially helpful if you evaluated his work performance on a regular basis.
  4. For an employee who is an over achiever, use his employee performance review to set new goals for him. Give him a challenge if you think he is up for it. Encourage him to advance his career at your company if you believe he has potential. An employee who is bored with his job is more likely to take his talents elsewhere.
  5. Praise an employee who consistently does a good job. Offering positive feedback on a regular basis will make your employee feel as though you appreciate him. What’s your reward? Your employee will be more likely to be loyal and hardworking.
  6. Although employee performance reviews are designed to give the employee feedback, encourage your employees to share their thoughts about your company. Listen to their concerns and pay attention to their comments. Consider using this valuable information to improve the way you run your business.

Twelve months is a long time to expect an employee to wait for a performance review. You may be amazed at the benefits your company will reap by keeping the lines of communication open on a regular basis.

Are you taking advantage of utilizing regularly scheduled employee performance reviews?

What are some other benefits of an employee performance reviews?


Employee performance reviews are just one management tool to help increase your business' productivity. If you run a small to mid-sized business, download the Strategic by Design Guide to discover how to eliminate over 80% of the management problems you may be experiencing.


Chris Nesbitt is a small business consultant and managing partner of Strategic Business Directs. Connect with him on LinkedIn and Google+.

Topics: Employee Training, Employee Performance Reviews