Why Leaders Should Offer Frequent Performance Reviews?

by  Jessica Sanders  |  Leadership Development

In today’s business world, time is money. Because of this, it’s smart to institute regular performance appraisals, commonly known as a performance review. Assessing your team at multiple points throughout the year helps you and your employees maintain goals and keep open communication.

“The benefits of performance appraisals are tough to argue with. Conducting performance appraisals helps to decrease uncertainty about job requirements and manager expectations, opens the door for training and development opportunities, and offers a chance to reinforce positive behavior.”

When you offer frequent performance reviews, you can be sure that both you and your employees are on the same page. There are a number of areas where such assessments are beneficial.


The number one benefit of assessing an employee’s job performance is being able to point out the strengths that you’ve witnessed.  Psychologically, no matter how old, humans crave recognition for hard work. “When leaders master the art of talent assessment and commit to coaching those who need their help, their organizations develop fierce loyalty, exhibit infectious enthusiasm for the work they do and want to spend their careers growing along with the company,” according to Executive Travel.

  • Benefit: Increased job satisfaction. In a time when job salaries are at an all time low, increasing job satisfaction is critical in keeping your best employees.


When you meet on a consistent basis with employees, it allows you to see what they’re doing and clarify your expectations. Whether someone has veered off course, or isn’t doing what has been set out for them, it’s important that you push them back in the right direction.

  • Benefit: Job description clarification. You can be sure each person is doing what they’ve been hired for and are clear in what is expected from them.

Goal Setting

You may start each quarter with new goals. However, for the over achievers, these goals may not be sufficient in keeping them busy for a long period of time. When you have the opportunity to see this, you can re-direct their efforts.

  • Benefit: Re-prioritization. Never let employees trail off because their goals have been met.

Areas of Improvement

One of the most common uses for an employee evaluation is to shed light on areas where there is work to be done. For new employees who have taken on an entry level position, this is a place for constructive criticism and allows you to take on a mentoring role.

  • Benefit: Influence career growth. Take this chance to direct your employees in a direction that will help them grow within the company. Growth from within can prevent hiring from outside down the road.

Overall Communication

When all is said and done, frequent performance reviews allow for an open flow of communication. While the office may be bustling with conversation every day, this is an opportunity to openly discuss where you see your employees now and in the future. It is also a chance to talk personally with an employee, which allows you to address any issues within the company.

  • Benefit: Discussion of in-house issues. Employees may not come to you with office drama or co-worker problems. Offer your employees a closed door opportunity where they may feel more comfortable speaking openly.

Utilizing frequent performance reviews is beneficial for everyone involved. As a leader, you are able to assess, guide and prioritize. On the other hand, your employees will always know where their position stands within the company, what their performance reflects back to you, and where they can make changes. When it comes to creating a healthy and thriving small business, don’t you think this open communication is a necessity?


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What People Are Saying

Linda  |  02 Apr 2012  |  Reply

Great summery, Jessica. Continuous communication and timely feedback are invaluable. There is another benefit to frequent performance reviews: When done on a more regular basis, it takes out all the stress and anxiety associated with the annual performance review. As you are reviewing a much shorter time period, you remember better what you have done and the review can be accomplished a lot quicker. It is more like a performance check-in meeting which ideally sums up the continuous feedback and objectives achievements to establish trends and really help improve future performance.

Jessica Sanders  |  03 Apr 2012  |  Reply

Linda, Thanks so much that is very true! Every dreads the annual review, but with a better idea of where you stand it becomes much less stressful. Thanks for that addition, and thank you for reading!

Elaine Suess  |  06 Apr 2012  |  Reply

Another thought here – when employees do not have a strong leader, it’s their responsibility to make sure they are getting reviews on a regular basis. When they don’t know where they stand throughout the year, surprises may be in store (and that can go either way!).

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