5 Common Mistakes in Performance Reviews and How to Fix Them

Everyone wants to feel liked, appreciated, and valued—whether it's on the stage accepting an award or in the workplace during a performance review.

This iconic moment reminds us of a universal truth: recognition and feedback have the power to inspire and motivate us. But in the workplace, the way we approach feedback and performance reviews often misses the mark, leaving employees feeling confused or undervalued.

Performance reviews are an essential part of managing a team and fostering employee growth. When done well, they can motivate, align goals, and create clear pathways for development. But when mishandled, they can lead to frustration, disengagement, and even high turnover.

Many managers, often unintentionally, make common mistakes during performance reviews that limit their effectiveness. In this article, we’ll explore five common pitfalls and offer actionable solutions to ensure your performance reviews achieve their intended goals: clarity, alignment, and employee growth.

Mistake 1: Focusing Only on the Negative

What Happens: It’s easy to fall into the trap of pointing out all the areas where an employee needs improvement, but neglecting their strengths can leave them feeling undervalued and demotivated.

The Fix:

• Balance Criticism with Praise: Follow the "80/20 rule"—spend 80% of the time discussing achievements and strengths, and 20% on areas for improvement.
• Be Specific with Praise: Instead of saying, “You’re doing great,” highlight specific accomplishments like, “Your leadership on the Q3 project helped us exceed our goals by 15%.”
• Frame Improvements Positively: For example, instead of saying, “You’re not meeting deadlines,” try, “Let’s work together to create a plan to better manage your workload and hit deadlines.”

Mistake 2: Being Too Vague

What Happens: Vague feedback leaves employees confused about their performance and unsure of how to improve. Phrases like “Keep up the good work” or “You need to do better” don’t provide actionable insights.

The Fix:

• Use Specific Examples: Instead of saying, “Your communication needs work,” say, “In the client presentation last month, there was some confusion about our deliverables. Let’s focus on making your messaging clearer in the next one.”
• Tie Feedback to Objectives: Relate your feedback to specific goals or outcomes, such as quarterly targets or company values.
• Document Feedback in Advance: Prepare examples of strengths and areas of improvement before the meeting to ensure clarity.

Mistake 3: Treating Performance Reviews as a Once-a-Year Event

What Happens: When feedback is only given annually, employees can feel blindsided by unexpected critiques or have no opportunity to course-correct during the year.

The Fix:

• Schedule Regular Check-Ins: Conduct informal one-on-one meetings throughout the year to provide real-time feedback and address challenges as they arise.
• Keep a Running Log of Performance: Track achievements, challenges, and feedback in an ongoing document so you’re not relying on memory at the end of the year.
• Use Performance Reviews for Big-Picture Discussions: Focus the annual review on overall progress, career development, and long-term goals, rather than rehashing every issue from the past 12 months.

Mistake 4: Letting Personal Bias Influence the Review

What Happens: Unintentional biases—whether it’s favoritism, recency bias (focusing only on recent events), or stereotyping—can skew the review process and leave employees feeling unfairly judged.

The Fix:

• Rely on Objective Data: Use metrics, KPIs, or documented examples to support your evaluations rather than subjective opinions.
• Be Consistent Across Employees: Use the same evaluation criteria for all team members to ensure fairness.
• Seek Input from Others: Gather feedback from colleagues, peers, or clients to get a well-rounded view of the employee’s performance.

Mistake 5: Failing to Create an Action Plan

What Happens: Employees leave the review without clear next steps or a sense of how to grow and improve, making the entire process feel like a missed opportunity.

The Fix:

• Set SMART Goals: Ensure goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, “Improve sales pipeline follow-ups by increasing weekly outreach by 20% over the next quarter.”
• Offer Development Opportunities: Discuss training, mentorship, or stretch assignments that can help the employee build new skills.
• Follow Up: Schedule a check-in within 1–3 months to review progress on the action plan and make adjustments if needed.

Take away:

Performance reviews are more than just a managerial checkbox—they’re an opportunity to align expectations, celebrate achievements, and set employees up for future success. By avoiding these five common mistakes and implementing thoughtful, actionable fixes, you can make the review process a more productive and positive experience for both you and your team.

Remember, performance reviews are a two-way conversation. They should leave employees feeling heard, valued, and motivated—not just critiqued. With the right approach, these conversations can be transformative for your team and your organization as a whole.