If the idea of conducting performance reviews makes you want to run for the hills, you’re not alone. A lot of small business owners feel unsure about how to give feedback, especially when your team feels more like family than employees. But skipping reviews can leave your team in the dark and your business growth stuck on pause.
A good performance review doesn’t have to be stiff or stressful. It can be a supportive, productive conversation that helps your employees grow and keeps your business moving forward. Here’s how to make that happen.
Shift the Mindset: It’s About Growth, Not Grades
Performance reviews aren’t about handing out gold stars or write-ups. They’re about helping your people understand what they’re doing well, where they can grow, and how they fit into the bigger picture of your business.
Let your team know that reviews are a time for reflection, support, and goal-setting. When you reframe them as collaborative check-ins instead of report cards, you take the pressure off everyone involved.
Keep It Personal, Not Just Professional
In a small business, you know your people. That’s a superpower. Use it. Talk to them about what motivates them, where they’re feeling stuck, and what they want their next chapter to look like. Sure, cover metrics and outcomes—but also ask how they’re doing, what’s challenging, and what they need from you.
This kind of empathy-based approach doesn’t just build better reviews—it builds loyalty and long-term growth.
Be Clear About Expectations and Outcomes
Nothing derails a performance review faster than fuzzy expectations. Be upfront about what success looks like in their role. Talk about what’s going well, where there’s room for improvement, and what’s next.
The more clarity you give, the more empowered your employee feels. And when someone knows what’s expected, they’re far more likely to meet (and even exceed) those goals.
Make It a Dialogue, Not a Download
Don’t just sit across from your employee reading off a checklist. Ask questions. Get their perspective. You might be surprised by what you learn. This should be a two-way conversation where both of you reflect, brainstorm, and align.
Consider asking:
- What part of your role do you enjoy the most?
- Where do you feel most challenged?
- Is there anything I can do to better support your success?
When people feel heard, they’re more engaged—and more open to honest feedback.
Follow Up With Action (Not Just Words)
The best performance reviews don’t end when the meeting does. Summarize key takeaways, outline goals, and schedule a follow-up. If you committed to support or training, deliver it. If they asked for new opportunities, explore what’s possible.
Following through builds trust and shows your employees that these conversations matter. That kind of leadership sticks.
A thoughtful, clear, and human performance review process can strengthen your team and your business. It doesn’t have to be complicated—it just needs to be consistent, honest, and rooted in a desire to help people grow. And when your people grow, your business can’t help but grow with them.