Do you conduct regular performance reviews and wonder if they're actually making a difference? Or are you about to have your first annual review as a manager and feel uncertain about how to structure it? You're not alone. Although 97% of top companies in German-speaking countries conduct regular employee reviews, only 22% of employees report that these conversations actually improve their performance (Gallup Engagement Index, 2015-2023).

The problem often isn't the tool itself, but how it's implemented. Many conversations are unstructured, focus too heavily on criticism rather than development, or are perceived as a "box-ticking exercise." The good news: With proper preparation, a clear framework, and constructive communication, performance reviews become a powerful instrument for motivation, development, and retention.

In this article, you'll learn:

• What a performance review is and what types exist
• How to optimally prepare for the conversation (checklist)
• A proven 6-phase guide for conducting reviews
• The most important questions for each conversation phase
• How to give constructive feedback (without causing harm)
• Dealing with difficult situations (resistance, emotions, criticism)
• Why objective data helps as a conversation foundation
• Modern trends: From annual reviews to continuous feedback

This guide is based on current scientific studies (Gallup, Ruhr University Bochum, feedback research) and practical experience from over 100,000 completed assessments.

What Is a Performance Review? Definition & Importance

A performance review (also called employee appraisal, one-on-one, or check-in) is a planned one-on-one conversation between a manager and employee that goes beyond everyday communication and addresses specific topics – typically performance evaluation, goal setting, development, and feedback. The classic example is the annual review in December, where goals for the new year are agreed upon.

Performance reviews are one of the most established leadership tools in business. A study by Ruhr University Bochum (2018) shows: 97% of the top 820 companies in German-speaking regions conduct regular employee reviews – 72% annually, 18% semi-annually. This widespread adoption speaks to the fundamental importance of the tool.

But why are performance reviews so important? They fulfill several key functions:

1. Creating transparency: Employees learn what expectations the company has for them and where they stand.
2. Providing feedback: Constructive feedback is one of the strongest levers for performance improvement (Hattie & Timperley, 2007: Effect Size d=0.79).
3. Fostering development: Conversations identify potential and derive concrete development measures.
4. Increasing motivation: Studies show: Employees with semi-annual reviews show 31% emotional engagement – almost double the average of 16% (Gallup).
5. Recognizing conflicts early: Regular exchange prevents problems from escalating.

Difference: Performance Review vs. Personnel Discussion

The terms are often used interchangeably, but there's a nuance:

• Performance review: Focus on development, goals, feedback – future-oriented, regular (e.g., annual review).
• Personnel discussion: Focus on individual problems (e.g., absenteeism, conflicts) – situation-specific, solution-oriented.

In practice, the boundaries blur. What's important: Both types of conversations serve collaboration and development, not control.

Why Are Performance Reviews Important? Studies Show: 97% Use Them

The scientific evidence is clear: Regular, well-conducted employee reviews demonstrably increase satisfaction, productivity, and retention.

Key findings from research:

• 97% adoption: Almost all top companies use performance reviews as a standard tool (Ruhr University Bochum, 2018).
• 31% higher engagement: Employees with semi-annual reviews show significantly higher emotional commitment (Gallup).
• Feedback works: Constructive feedback has one of the strongest effects on performance (Effect Size: d=0.79 – Hattie & Timperley, 2007).

However: Quality matters. Only 22% of employees report that reviews actually improve their performance. 60% experience them as a "box-ticking exercise" (Gallup). This shows: A performance review alone isn't enough – it must be well-prepared, structured, and development-oriented.

Types of Performance Reviews: An Overview

Not every performance review pursues the same goal. Depending on the occasion and focus, different types of conversations are distinguished:

Annual Review / Year-End Review

Occasion: Regular, usually at year-end
Duration: 60-90 minutes
Content: Review of past year, performance evaluation, goal achievement, new goals for coming year, development wishes
Goal: Status determination, providing orientation, making agreements

The annual review is the classic among performance reviews. Here, the balance is drawn: What went well? Where is development needed? What goals do we set for the next year? The conversation should be balanced – not just criticism, but also acknowledging successes.

Feedback Conversation & Regular Check-ins

Occasion: Quarterly or after project completion
Duration: 20-30 minutes
Content: Appreciative feedback on performance and behavior, brief reflection
Goal: Continuous feedback, quick course corrections

Modern companies increasingly rely on short, regular check-ins instead of just an annual review. These feedback conversations enable timely responses and prevent problems from going unaddressed for an entire year. Studies show: Agile check-ins (quarterly) are often more effective than annual reviews (Mercer, 2020).

Goal-Setting Meeting

Occasion: At the start of a new fiscal year or project
Duration: 30-45 minutes
Content: Defining SMART goals, setting priorities, clarifying resources
Goal: Creating clarity about expectations, involving the employee

This is exclusively about defining concrete, measurable goals. Important: Goals should be developed together, not dictated from above. Self-Determination Theory (Deci & Ryan, 2000) shows: Autonomy in goal-setting increases intrinsic motivation.

Development Conversation / Career Discussion

Occasion: For career ambitions, training wishes, or potential identification
Duration: 45-60 minutes
Content: Analyzing strengths, identifying development areas, planning training, career perspectives
Goal: Promoting individual development, retaining talent

Development conversations focus on potential rather than weaknesses. They're particularly important for high potentials and employees who want to grow. Strengths-based leadership – fostering individual strengths rather than combating weaknesses – demonstrably shows higher performance (Mercer, 2020).

Critical Feedback / Conflict Resolution Meeting

Occasion: For performance issues, misconduct, or conflicts
Duration: 30-60 minutes
Content: Addressing concrete incidents, clarifying impacts, developing solutions together
Goal: De-escalation, behavior change, creating clarity

This is the most difficult type of conversation. Critical feedback meetings require special preparation, empathy, and clear communication. Important: Focus on behavior, not person. Stay objective, cite concrete examples, work solution-oriented.

Probation Review & Onboarding Check-in

Occasion: During or at the end of probation period
Duration: 30-45 minutes
Content: Expectation alignment, reflecting on onboarding, mutual feedback
Goal: Ensuring integration, recognizing problems early

Probation reviews are crucial for successful onboarding processes. They give new employees security, show appreciation, and allow misunderstandings to be clarified early.

Overview: Comparison of Conversation Types

Preparing for a Performance Review: Checklist for Managers

Preparation significantly determines the success of the conversation. A rule of thumb says: Preparation time should be roughly equal to the meeting time itself. For a 90-minute annual review, that means at least 90 minutes of preparation.

7-10 Days Before: Announce the Meeting & Communicate Topics

What to do:

• Announce the meeting personally (not by email)
• Book an undisturbed room (not a thoroughfare!)
• Clearly communicate the time frame (e.g., "We'll take 90 minutes")
• Name topics in advance: "We'll discuss retrospective, goals, development"
• Ask the employee to also prepare

Why important: Early announcement provides security. When employees know what to expect, nervousness decreases. Additionally, they can prepare content-wise, which significantly improves conversation quality.

Tip: Send a brief meeting agenda via email with guiding questions for preparation:

• "What were your biggest achievements last year?"
• "Where do you see development needs?"
• "What goals would you like to achieve next year?"

3-5 Days Before: Gather Information & Prepare Guide

What to do:

• Collect performance data: Project successes, goal achievement, KPIs
• Gather feedback from colleagues or customers (360-degree perspective)
• Read the last meeting protocol: Were agreements implemented?
• Create a guide with structure (see "6-Phase Guide" section)
• Note concrete examples (for praise AND criticism)
• Define your own goals for the conversation: What should be achieved?

Why important: Without concrete facts, the conversation becomes vague and non-binding. "You need to try harder" isn't constructive feedback. "In the last 3 projects, deadlines weren't met" is.

Anti-Bias Tip: Make sure you use objective data. Studies show: 92% of input for performance evaluations comes from the manager (Ruhr University Bochum, 2018) – this creates risk for unconscious bias. Iris Bohnet (2016) demonstrates: Women receive vaguer feedback than men. Structured evaluation criteria and objective data (e.g., from assessments) reduce bias by 30-40%.

1 Day Before: Book Room & Prepare Materials

What to do:

• Final room check: Quiet? Clean? No interruptions?
• Put up "Do not disturb" sign
• Set phone to silent (applies to both!)
• Lay out materials: Guide, notepad, previous protocols
• Mentally prepare: What reactions are possible? How will I respond?

Why important: Interruptions destroy the conversation atmosphere. If the phone rings mid-conversation or someone barges in, it signals: "This conversation isn't that important to me."

What Employees Should Do to Prepare

Good performance reviews are dialogues, not monologues. Therefore, employees should also be prepared.

Recommended preparation for employees:

• Retrospective: Note successes, challenges, highlights of the year
• Self-assessment: Where do I stand on goal achievement?
• Development wishes: What training do I need? Where do I want to go?
• Prepare feedback: What do I wish from my manager?
• Note questions: What's unclear? What do I want to address?

Tip for managers: Send employees these guiding questions in advance. This enormously increases conversation quality.

Performance Review Guide: Structure & Process in 6 Phases

A structured conversation provides security – for both sides. The following 6-phase guide is proven in practice and flexibly adaptable.

Total duration: 60-90 minutes (for annual review)
Speaking portions: 70% employee, 30% manager (Listening is more important than talking!)

Phase 1: Opening & Creating Atmosphere (5-10 min.)

Goal: Build trusting atmosphere, reduce nervousness

What to do:

• Friendly greeting, small talk (How are you?)
• Briefly explain the purpose: "We want to take stock together, discuss goals, and see how I can better support you."
• Present conversation structure: "We'll go through 6 phases: Retrospective, feedback, development, goals, agreements."
• Clarify conversation rules (optional): "Let's speak openly. Everything stays confidential."
• Ask an open, positive question: "What did you particularly enjoy this year?"

Why important: First impressions count. A positive opening question ("What went well?") creates an open atmosphere. No one should start the conversation with fear.

Avoid typical mistakes:

• ❌ Starting directly with criticism
• ❌ Appearing rushed ("I only have 30 minutes")
• ❌ Leaving phone on the table

Phase 2: Retrospective on Past Period (15-20 min.)

Goal: Reflect together, acknowledge successes, name challenges

What to do:

• Let employee speak first: "How would you summarize the last year?"
• Listen actively, take notes
• Follow up: "Tell me more about Project X"
• Explicitly acknowledge successes: "The presentation for Client Y was really impressive."
• Have challenges named: "What was difficult for you?"
• Add your own perspective: "From my view, especially..."

Questions for retrospective:

• "What achievements are you particularly proud of?"
• "Which project challenged you the most?"
• "Were there situations where you would have needed more support?"
• "What would you do differently in hindsight?"

Scientific background: Reflection is a strong learning mechanism. Those who consciously reflect on their actions learn from them (Kolb's Experiential Learning Cycle).

Phase 3: Performance Evaluation & Feedback (15-20 min.)

Goal: Clear, constructive feedback on performance and behavior

What to do:

• Start with positive feedback (what went well?)
• Then address development areas (what can be improved?)
• Apply feedback formula: (1) Specific situation, (2) Impact, (3) Expectation, (4) Joint solution
• Give examples (specific, not vague!)
• Ask for employee's self-assessment: "How do you see it?"
• With differences: Have dialogue, don't try to convince

The Feedback Formula (based on Hattie & Timperley, 2007):

✅ Specific: "In the last 3 projects, deadlines weren't met."
✅ Impact: "This leads to delays for the team."
✅ Expectation: "I expect punctual delivery."
✅ Solution: "Where do you need support?"

❌ Vague: "You need to try harder."
❌ Personal: "You're unreliable."

Important: Feedback is future-oriented, not rehashing old mistakes. Focus on task/process, not person (Hattie & Timperley, 2007).

Phase 4: Discuss Development & Training (10-15 min.)

Goal: Identify potential, plan development measures

What to do:

• Identify strengths: "Where are your particular talents?"
• Ask about development wishes: "Where would you like to develop?"
• Discuss career perspectives: "Where do you see yourself in 2-3 years?"
• Define concrete measures: Training, mentoring, job rotation, etc.
• Clarify resources: Budget, time, internal/external offerings

Strengths-based leadership in practice:

Instead of: "You need to get better at Excel."
→ "Your analytical skills are strong – how can we build on that? Perhaps with a Power BI course?"

Why important: Self-Determination Theory (Deci & Ryan, 2000) shows: People are intrinsically motivated when they have competence (experiencing growth) and autonomy (co-deciding). Development conversations fulfill both needs.

Use objective data: Here, objective assessment tools can be helpful. A scientifically validated strengths profile shows objectively where potential lies – you don't have to rely solely on gut feeling. Companies like OMR use assessment scores to make strengths visible and conduct strengths-based conversations. Kaya Kruse, People Lead at OMR, emphasizes: "Aivy works. We reduce bias, gain more objectivity in hiring, and strengthen diversity long-term." This objectivity also helps in development conversations.

Phase 5: Goal Setting for Next Period (10-15 min.)

Goal: Define SMART goals together, set priorities

What to do:

• Present company goals (top-down)
• Involve employee: "What goals would you like to achieve?" (bottom-up)
• Formulate 3-5 SMART goals together
• Set priorities: "What's most important?"
• Clarify resources: "What do you need to achieve these goals?"
• Define milestones: "When do we check progress?"

SMART Goals:

• Specific: Clearly formulated
• Measurable: Success is quantifiable
• Achievable: Attainable with available resources
• Relevant: Employee wants to achieve it
• Time-bound: Clear deadline

Example:
❌ "Improve your presentation skills."
✅ "Deliver three client presentations by Q3 with feedback >4/5 points."

Important: Goals should be developed together. Autonomy increases motivation (Deci & Ryan, 2000).

Phase 6: Summary & Making Agreements (5-10 min.)

Goal: Create commitment, clarify next steps

What to do:

• Summarize key points: "What did we discuss?"
• Record agreements: "What are the next steps?"
• Clarify responsibilities: "Who does what by when?"
• Schedule next meeting (e.g., mid-year check-in)
• End positively: "Thank you for the open conversation. I look forward to our collaboration."
• Announce protocol: "I'll send you the summary by next week."

Why important: Without written protocol, agreements fade away. Both sides should receive and review the protocol.

The Most Important Questions in Performance Reviews (with Examples)

Good questions are the heart of successful conversations. Open questions (that can't be answered with yes/no) encourage dialogue and give employees space to share their perspective.

Questions for Retrospective & Reflection

• "How would you describe the last year in three words?"
• "What accomplishments are you particularly proud of?"
• "Which project challenged you the most – and what did you learn from it?"
• "Were there situations where you needed more support?"
• "What could I have done better as your manager?"

Questions for Performance Evaluation

• "How would you rate your own performance last year?"
• "Where do you see your greatest strengths?"
• "In which areas do you see development needs for yourself?"
• "How satisfied are you with your goal achievement (scale 1-10)?"
• "What was your biggest success? Your biggest challenge?"

Important: Let the employee give their self-assessment first, before you share your perspective. This creates dialogue instead of defensiveness.

Questions for Development & Training

• "Where would you like to develop over the next 12 months?"
• "What skills would you like to build?"
• "What training would advance you the most?"
• "Where do you see yourself in 2-3 years – within or outside the team?"
• "Are there tasks you'd like to take on?"
• "What does it take for you to perform at your best here?"

Questions About Goals & Expectations

• "What goals would you like to achieve next year?"
• "If you could choose three goals – what would they be?"
• "What's most important to you in your work?"
• "What support do you need from me to reach your goals?"
• "How can we ensure you stay on the right track?"

Why Open Questions Are So Important

Open questions begin with W-words (How, What, Why, Which) and can't be answered with yes/no. They:

• Encourage reflection
• Provide space for perspectives
• Show genuine interest
• Avoid defensive postures

Avoid closed questions:❌ "Are you satisfied?" → "Yes." (End of conversation)
✅ "What do you like about your work? What would you like to change?"

Avoid leading questions:❌ "You also see that the project went badly, right?"
✅ "How do you assess the project's progress?"

Giving Constructive Feedback: How to Succeed

Feedback is one of the strongest levers for performance improvement – when done right. Studies show: Feedback has an effect size of d=0.79 (Hattie & Timperley, 2007) – that's enormous. But: Wrong feedback can demotivate or hurt.

The Feedback Formula: Specific, Timely, Future-Oriented

The three principles according to Hattie & Timperley (2007):

1. Specific: Refer to concrete situations, not general characteristics.
2. Timely: Give feedback as soon as possible after the event.
3. Future-oriented: Focus on improvement, not blame.

The Feedback Formula:

1. Describe situation: "In last week's presentation..."
2. Name impact: "...it wasn't clear what the main message was."
3. Formulate expectation: "For the next presentation, I expect..."
4. Find solution together: "How can we improve this?"

Example (positive):"Your presentation to the client was very convincing. The visual preparation of the data particularly helped make complex relationships understandable. That significantly contributed to the client saying yes. Keep it up!"

Example (critical):"In the last three projects, deadlines weren't met. This leads to the team falling behind and other colleagues having to work overtime. I expect delivery dates to be met. Let's look together: Where's the problem? How can we solve it?"

Positive Feedback: More Than Just "Well Done!"

Many managers praise too generally: "Good job!" or "Keep it up!" That's nice, but not very effective.

Effective positive feedback is:

• Specific: "Your analysis in the presentation was excellent – especially the data visualization."
• Linked to impact: "That helped the client make the decision quickly."
• Sincere: Only praise what was actually good.

Typical mistake: Sandwich feedback (Praise – Criticism – Praise). That seems contrived. Better: Address praise and criticism separately.

Critical Feedback: Without Hurting

Criticism is difficult – for both sides. But: Constructive criticism is appreciation. It shows: "I believe in your development."

Do's:

• ✅ Focus on behavior, not person: "The project wasn't completed on time" instead of "You're unreliable."
• ✅ Give concrete examples: "In Project X, Y, Z..."
• ✅ Explain impacts: "This leads to..."
• ✅ Develop solution together: "How can we change this?"
• ✅ Convey growth mindset: "You can learn this" instead of "This isn't your thing."

Don'ts:

• ❌ Generalizations: "You always...", "You never..."
• ❌ Personal attacks: "You're lazy/incompetent/..."
• ❌ Comparisons with others: "Colleague X manages this easily."
• ❌ Rehashing old mistakes: "And last year you also..."
• ❌ Emotional overwhelm: Too much criticism at once

Example:❌ "You're just too slow. That annoys me."
✅ "Processing time for requests is currently 5 days. Our goal is 2 days. What can we do so you can work faster?"

Avoiding Typical Feedback Mistakes

1. Only criticism, no praise: Demotivating. Balance is important.
2. Vague feedback: "You need to try harder" doesn't help.
3. Feedback too late: Don't wait a year to address problems.
4. Personal focus instead of behavior: "You are..." instead of "The behavior..."
5. No recommendation for action: Criticism without solution approach frustrates.

Mastering Difficult Situations in Performance Reviews

Not every conversation goes smoothly. Emotions, resistance, or conflicts are part of it – especially in critical feedback situations. The art is staying calm and responding constructively.

Dealing with Resistance & Defensive Posture

Typical signs:

• Crossed arms, dismissive body language
• "Yes, but..." reactions
• Justifications, blaming others
• Silence or monosyllabic answers

What to do:

1. Stay calm: Don't let yourself be provoked, don't justify.
2. Listen actively: "I hear that you see it differently. Tell me more."
3. Acknowledge perspective: "I understand that you find this frustrating."
4. Steer focus to facts: "Let's look at the situation together."
5. Seek solution together: "What would be the best solution from your perspective?"

Example:Employee: "I just didn't have time for the project!"
Manager (bad): "That's no excuse. Others manage it too."
Manager (good): "I hear that you were under time pressure. Let's look together: What took the most time? How can we better plan your workload?"

What to Do When Employees React Emotionally?

With tears:

• Offer a break: "Let's pause briefly. Would you like a glass of water?"
• Show understanding: "I see this topic is emotional for you."
• Give time to compose themselves
• Then continue calmly: "Would you like to talk about what's moving you?"

With anger:

• Don't escalate: Stay calm, lower your voice (has de-escalating effect)
• Acknowledge feelings: "I understand that this frustrates you."
• Listen actively, then steer focus to factual level
• With massive escalation: Postpone conversation ("Let's talk again tomorrow when things have calmed down.")

Important: Emotions are normal and legitimate. They show the topic is important. Don't suppress them, but don't let yourself be overwhelmed either.

Conducting Critical Feedback: Guide for Difficult Topics

Critical feedback meetings require double preparation. Here's a step-by-step guide:

Preparation:

1. Gather concrete examples (data, incidents, numbers)
2. Anticipate possible reactions and think through responses
3. Think through solution options in advance
4. Create guide with clear structure
5. Prepare emotionally: Stay calm, remain objective

Execution:

1. Opening: Objective, clear, no beating around the bush: "I want to talk with you about [problem]."
2. Name problem: Concrete, with examples: "In the last three projects..."
3. Explain impact: "This leads to..."
4. Hear employee's perspective: "How do you see it?"
5. Develop solution together: "What can we do?"
6. Formulate clear expectations: "I expect that..."
7. Make agreements: "By when will you implement this?"
8. Plan follow-up: "We'll meet again in 4 weeks."

Example:"I want to talk with you about the deadline delays. In the last three projects, deadlines weren't met – in Project X it was 5 days, in Project Y 3 days. This leads to the entire team falling behind. How do you see the situation? [Pause, listen] I understand that you have many tasks in parallel. Let's look together at how we can solve this. What do you need to meet deadlines? [Develop solutions together] I expect that from now on deadlines are met or you let me know at least 3 days in advance if there will be delays. Agreed? [Make agreement]"

When Performance Isn't Meeting Standards: Concrete Action Steps

For persistent underperformance, a clear plan is necessary:

Step 1: Document current state

• Gather concrete examples (what went wrong when?)
• Compare expectations vs. reality

Step 2: Identify causes

• Are resources missing? (Time, tools, know-how)
• Is there lack of clarity about expectations?
• Are there personal problems? (Health, family)
• Missing competence or missing motivation?

Step 3: Define measures

• Offer training/coaching
• Adjust goals (make more realistic)
• Provide resources
• Set clear deadlines

Step 4: Communicate consequences

• "If nothing improves by [date], we'll need to discuss [consequences]."
• Consequences can be: No raise, no promotion, in extreme cases: transfer or termination

Step 5: Follow-up

• Regular check-ins (e.g., every 2 weeks)
• Document progress
• With improvement: Acknowledge it!

Important: Be fair, but clear. Persistently poor performance hurts the team and company. At the same time: Give people real chances to improve.

Documenting & Following Up on Performance Reviews

A conversation without protocol is like a contract without signature: non-binding. Documentation creates clarity, commitment, and serves as the basis for the next conversation.

What Belongs in the Meeting Protocol?

A good protocol is compact, clear, and action-oriented. It should contain the following elements:

1. Basic data:

• Date, participants, duration
• Topic/occasion (annual review, feedback conversation, etc.)

2. Retrospective/Summary:

• Key achievements of the past year
• Challenges that were discussed
• Goal achievement (e.g., 4 of 5 goals met)

3. Feedback:

• Employee's strengths
• Development areas
• Agreed improvement measures

4. Goal agreements:

• 3-5 SMART goals for next period
• Priorities, milestones
• Resources to be provided

5. Development/Training:

• Planned training measures (seminars, coaching, etc.)
• Responsibilities: Who organizes what by when?

6. Next steps:

• Who does what by when?
• Date for next meeting

7. Signatures:

• Both conversation partners should review and sign the protocol (or confirm digitally)

Example Protocol (Short Form):

Performance Review: John Smith & Sarah Johnson
Date: 01/15/2026 | Duration: 90 min.

RETROSPECTIVE:
- Successes: Project X successfully completed, customer satisfaction 9/10
- Challenges: Time management with parallel projects

FEEDBACK:
- Strengths: Analytical thinking, customer orientation
- Development areas: Prioritization, delegation

GOALS 2026:
1. Complete 3 customer projects by Q3 (satisfaction >8/10)
2. Training: Power BI course by Q2
3. Team mentoring: Onboard 1 junior colleague

TRAINING:
- Power BI course (external, date: March 2026)
- Time management workshop (internal, date: April 2026)

NEXT STEPS:
- John: Register for Power BI course by 01/31
- Sarah: Budget approval by 01/25
- Next meeting: July 2026 (mid-year review)

Signatures: ________________  ________________

Recording Agreements & Following Up

Problem: Many conversations end with good intentions – which then get lost in daily business.

Solution: Systematic follow-up

What to do:

1. Send protocol within 1 week (to employee + HR if applicable)
2. Have it reviewed: Both sides should agree
3. Enter dates in calendar: Training, milestones, next meeting
4. Regular check-ins: Brief updates (e.g., every 6-8 weeks) instead of only once a year
5. In next meeting: Use protocol as basis ("What was implemented?")

Tip: Use digital tools (HR software) for follow-up. Many systems allow reminders, status updates, and automatic workflows.

Observing Data Protection & Legal Aspects

Important: Performance review protocols contain sensitive data!

Legal basics:

• Data protection (GDPR): Protocols must be treated confidentially
• Employment law: Protocols can be relevant in conflicts/terminations (evidence)

What does this mean in practice?

• ✅ Protocol remains confidential between manager and employee
• ✅ Only agreed development measures go to HR (with employee consent)
• ✅ Protocol is stored securely (not freely accessible)
• ✅ After end of employment: Delete protocols according to retention periods
• ❌ Don't share protocol with third parties without consent
• ❌ Don't write evaluations/comments in protocol that weren't discussed

Tip: For critical conversations (warnings, terminations), HR or works council should be involved.

Objective Data as Conversation Foundation: Why It Helps

Many performance evaluations are based on subjective assessments by the manager. The problem: Subjectivity opens the door for unconscious bias – unconscious prejudices that distort our perception.

Problem: Subjective Evaluations & Unconscious Bias

The numbers speak for themselves:

• 92% of input for performance evaluations comes from the manager (Ruhr University Bochum, 2018)
• Women receive vaguer feedback than men (Bohnet, 2016)
• Men are described as "strategic thinkers," women as "team-oriented" (Stereotype Bias)
• Affinity Bias: We prefer people who are similar to us

What is unconscious bias? Unconscious prejudices that influence our decisions without us noticing. In the context of performance reviews, this can mean:

• Performance of "favorite employees" is overrated
• Development potential of minorities is underestimated
• Introverts are perceived as "less engaged" (although they perform equally)

Consequences:

• Unfair performance evaluations
• Talents are overlooked
• Lack of equal opportunity
• Demotivation among those affected

Solution: Using Assessment Tools & Strengths Profiles

The solution: Objective data as a supplement to subjective assessment.

What is objective data?

• Results from scientifically validated assessment tools (e.g., assessments, 360-degree feedback)
• KPIs: Measurable performance metrics (revenue, project completions, customer satisfaction)
• Competency tests: Standardized procedures for measuring abilities

Benefits:

• ✅ Bias reduction: Objective tests are the same for everyone
• ✅ Comparability: Strengths/weaknesses become measurable
• ✅ Transparency: Employees see what evaluations are based on
• ✅ Strengths-based development: Assessments show where potential lies

Studies confirm: Structured evaluation criteria and objective data reduce bias by 30-40% (Bohnet, 2016).

Practical Example: Strengths-Based Conversations with Assessment Data

How does this work in practice?

Imagine: Instead of just using your gut feeling, you have an objective strengths profile of your employee – based on a scientifically validated assessment. This profile shows:

• Analytical thinking: 85/100
• Problem-solving competence: 78/100
• Teamwork: 92/100
• Stress resistance: 65/100

Now you can conduct the development conversation much more specifically:

• "Your strengths profile shows that analytical thinking is one of your strengths. How can we build on that? Perhaps with a data analysis project?"
• "With stress resistance, we see development potential. How do you feel with deadlines? Where can we support you?"

The difference: You're not talking about vague impressions ("I think you're good in the team"), but about objective, measurable data. This creates clarity and reduces resistance.

How Tools Like Aivy Enrich Performance Reviews

Objective assessment tools like Aivy enable data-based decisions instead of gut feeling. The platform uses game-based assessments – playful, scientifically validated tests that objectively measure competencies and personality.

How does this help with performance reviews?

• Strengths profile as conversation foundation: Instead of subjective assessments, you have measurable data
• Bias reduction: Standardized procedures are the same for everyone – regardless of gender, age, origin
• Development perspectives: Assessments show where potential lies (strengths-based leadership)
• Team analyses: Understand strengths distribution in the team, promote diversity

Practical examples:

Callways uses objective data for better conversations. CEO Achim Reinhardt emphasizes: "The conversations are clearly better and more to the point. Also works with executives: Selection of the truly interested, better and focused conversations." Conversation quality has significantly improved through strengths-based approaches – the investment pays off from day 1.

OMR uses Aivy for team analyses. Kaya Kruse, People Lead at OMR, explains: "Assessment scores provide additional information for strengths matching. Hiring teams are curious about results and often take the assessment themselves. Team analyses: Making strengths visible, strengths-based leadership." The result: "Aivy works. We reduce bias, gain more objectivity in hiring, and strengthen diversity long-term."

Important: Tools don't replace conversation – they enrich it. The human component (empathy, trust, dialogue) remains central.

Modern Trends: From Annual Reviews to Continuous Feedback

The world of work is changing – and with it performance management. The classic annual review is increasingly under pressure.

Why Annual Conversations Are No Longer Sufficient

Problems with the classic annual review:

1. Too infrequent: 12 months without feedback is an eternity. Problems remain unspoken, potential unused.
2. Too retrospective: Focus on the past instead of the future.
3. Too static: Goals set in January often no longer fit reality in December (especially in agile, fast-moving industries).
4. Too one-sided: 92% of input comes from the manager – this creates bias risk.

Studies confirm: 70% of companies worldwide are rethinking their performance management (Mercer, 2020). The trend is moving away from annual ratings toward continuous feedback.

What do employees want?

• Regular, timely feedback
• Focus on strengths rather than weaknesses
• Development orientation instead of evaluation
• Dialogue instead of monologue

Agile Check-ins & OKRs Instead of Classic Goal Agreements

The alternative: Agile check-ins

Instead of once yearly: Regular, short conversations (e.g., every 4-8 weeks)

Benefits:

• ✅ Timely feedback
• ✅ Quick course corrections possible
• ✅ Less formal, more dialogue
• ✅ Higher emotional engagement (Gallup: +31% with semi-annual conversations)

Typical check-in flow (20-30 minutes):

1. Retrospective: What happened since last conversation?
2. Acknowledge successes: What went well?
3. Discuss challenges: Where are there problems?
4. Next steps: What's coming up?

OKRs (Objectives and Key Results):

A modern alternative to classic goal agreements. Instead of rigid annual goals: Quarterly goals with measurable key results.

Example:

• Objective: Increase customer satisfaction
• Key Results:
  1. Increase NPS score from 60 to 70
  2. Conduct 10 customer feedback conversations
  3. Implement 2 product improvements based on feedback

Benefit: OKRs are flexible, transparent, and promote autonomy.

Digital Tools for Performance Management

Digitalization makes continuous feedback easier. Modern HR software enables:

• Automatic reminders for check-ins
• Digital protocols with status tracking
• 360-degree feedback easily obtainable
• Real-time dashboards: Make goal progress visible
• Integration with OKR tools

Examples:

• Lattice, 15Five, Culture Amp (international)
• Aivy (objective assessment tools as development tools)

Important: Tools are means to an end. Human interaction remains central – technology supports, but doesn't replace conversation.

Frequently Asked Questions (FAQ)

How often should I conduct performance reviews?

The classic annual review often isn't enough anymore. Studies show: At least 2x yearly structured conversations (e.g., annual review + mid-year review) plus 2-3 short check-ins in between significantly increase employee retention. Gallup data shows: Employees with semi-annual conversations show 31% emotional engagement – almost double the average (16%).

How long should a performance review last?

Plan at least 60-90 minutes for a comprehensive annual review. For check-ins, 20-30 minutes is sufficient. Important: Quality over quantity! A rushed 30-minute conversation accomplishes less than a well-prepared, calm 90-minute conversation.

Are performance reviews legally required?

No, there's no legal requirement for performance reviews. However, company agreements, collective bargaining agreements, or employment contracts may establish them. From the perspective of personnel development and employee retention, they're indispensable – 97% of top companies in German-speaking regions conduct them.

What do I say when an employee's performance isn't meeting standards?

Be specific, objective, and solution-oriented. Use the feedback formula: (1) Describe specific situation, (2) Name impact, (3) Formulate expectation, (4) Develop solution together. Example: "In the last 3 projects, deadlines weren't met (situation). This leads to delays for the team (impact). I expect punctual delivery (expectation). Where do you need support?" (solution).

How do I handle tears or anger in the conversation?

Stay calm and empathetic. With tears: Offer a break, show understanding ("I see this topic is emotional for you"), give time. With anger: Don't justify or escalate. Listen actively, acknowledge feelings ("I understand this frustrates you"), then steer focus to factual level. If necessary: Postpone conversation and continue another day.

Do I have to document the performance review?

Yes, recommended! A written protocol with agreed goals, measures, and deadlines creates commitment. Important: Both conversation partners should receive and review the protocol. Only agreed development measures go to HR – the rest of the protocol remains confidential between manager and employee (data protection!).

What mistakes should I avoid in performance reviews?

The 5 most common mistakes: (1) Giving a monologue instead of dialogue, (2) Only criticism, no praise, (3) Vague formulations ("You need to try harder"), (4) Rehashing the past instead of being future-oriented, (5) No concrete agreements. Also avoid: Hallway conversations, surprise criticism without examples, personal attacks.

How do I prepare for a difficult performance review?

Plan double preparation time! (1) Gather concrete examples (data, incidents, numbers), (2) Anticipate possible reactions and think through responses, (3) Think through solution options in advance, (4) Create guide with clear structure, (5) Prepare emotionally: Stay calm, remain objective. Optional: Discuss conversation with HR or coach beforehand.

Can employees decline the conversation?

Fundamentally no – performance reviews are part of the employer's duty of care. With customary, regular conversations, there's an obligation to participate. But: Don't force a conversation against massive resistance. Clarify the reasons, offer a person of trust if needed (e.g., works council). A constructive conversation needs willingness on both sides.

How do I integrate objective data into performance reviews?

Use assessment tools, assessments, or 360-degree feedback as conversation foundation. Example: A strengths profile from a scientifically validated assessment shows objectively where potential lies – you don't have to rely solely on gut feeling. This reduces unconscious bias and enables strengths-based development conversations. Companies like OMR use such tools successfully.

Conclusion: The Path to Successful Performance Reviews

Performance reviews are one of the most powerful leadership tools – when conducted properly. The numbers show the potential: Employees with regular conversations are twice as emotionally engaged (31% vs. 16%). At the same time, they reveal the problem: Only 22% of conversations lead to actual performance improvement.

The difference lies in implementation. Successful performance reviews are:

• Well-prepared: At least as much time for preparation as for the conversation itself
• Structured: A clear guide (e.g., 6 phases) provides security
• Dialogue-oriented: 70% speaking portion for employee, 30% for manager
• Future-oriented: Focus on development, not blame
• Data-based: Objective foundations (KPIs, assessments) reduce bias

Your action recommendation:

1. Plan regular conversations: At least 2x yearly structured, plus quarterly check-ins
2. Use the 6-phase guide: Opening, retrospective, feedback, development, goals, agreements
3. Ask open questions: Let employees speak, listen actively
4. Give constructive feedback: Specific, timely, future-oriented (feedback formula)
5. Document agreements: Create protocol, plan follow-up
6. Use objective data: Assessment tools reduce bias, enable strengths-based development

Objective assessment tools like Aivy support you in putting conversations on a solid foundation. Through scientifically validated assessments, you receive measurable strengths profiles that help you develop specifically instead of just evaluating subjectively. Companies like OMR and Callways show: Strengths-based conversations with objective data lead to better results – with higher satisfaction on both sides.

Remember: Performance reviews are investments in people – and thus in the future of your company. Give them the time and attention they deserve.

Sources

• Gallup (2015-2023). Engagement Index Germany. Marco Nink. Gallup Germany. https://www.gallup.com/workplace/engagement.aspx
• Hossiep, R., Willmes, L. F. et al. (2018). The Performance Review as a Leadership Tool: A Follow-Up Study of the 820 Largest Companies in German-Speaking Regions. Ruhr University Bochum.
• Hattie, J. & Timperley, H. (2007). The Power of Feedback. Review of Educational Research, 77(1), 81-112. https://doi.org/10.3102/003465430298487
• Deci, E. L. & Ryan, R. M. (2000). The "What" and "Why" of Goal Pursuits: Human Needs and the Self-Determination of Behavior. Psychological Inquiry, 11(4), 227-268. https://doi.org/10.1207/S15327965PLI1104_01
• Bohnet, I. (2016). What Works: Gender Equality by Design. Harvard University Press. ISBN: 978-0674089037.
• Mercer (2020). Growth & Impact Framework – Performance Management Study. Mercer LLC. https://www.mercer.com
• Hossiep, R. & Bittner, J. E. (2006). Let's Talk About It... – The Quiet Success of Performance Reviews in German Companies. Wirtschaftspsychologie aktuell, 2–3/2006, 41-44.
• Hossiep, R., Zens, J. E. & Berndt, W. (2020). Performance Reviews: Motivating, Effective, Sustainable (2nd ed.). Göttingen: Hogrefe. ISBN: 978-3801730147.