Most managers dread writing performance reviews. Not because they don't care about their team's development — but because nobody taught them how to do it properly. The result is reviews that are either vague ("great attitude"), overly generous (everyone gets 4/5 to avoid difficult conversations), or so focused on the past year that they fail to set any useful direction for the next one. This guide explains how to write a performance review that actually serves its purpose: giving employees an honest, structured, and development-focused assessment that they can act on. If you want to skip straight to the templates, you can download our free performance review template and employee appraisal template for free. What Is a Performance Review? A performance review (sometimes called an appraisal, performance appraisal, or annual review) is a formal assessment of an employee's performance over a defined period — typically six or twelve months. Its purpose is threefold: To assess performance against agreed goals and expectations To provide structured, documented feedback To set direction and development goals for the next period A good performance review is not just an administrative exercise. Done well, it's one of the most powerful tools a manager has for improving team performance, reducing turnover, and identifying development opportunities. What to Include in a Performance Review A structured performance review should cover: Goal review What goals were set at the start of the review period? Were they achieved? If not, why not? This section should be factual and evidence-based — not based on general impressions. Core competencies How has the employee performed against the key competencies for their role? Common competencies include: Quality of work Communication and collaboration Problem-solving and initiative Reliability and attendance Leadership or management (where relevant) Strengths and achievements What has the employee done particularly well? Be specific — "your handling of the X client situation in March was excellent because..." is far more useful than "you have a great attitude." Areas for development Where has performance fallen short? Where are there clear opportunities to improve? Again, be specific and evidence-based. Refer to specific incidents or patterns, not generalisations. Development plan What actions will be taken to support the employee's development in the next period? This should include specific training, stretch projects, or mentoring — not vague aspirations. Goals for the next period What are the specific, measurable goals for the next review period? Using a SMART goal framework (Specific, Measurable, Achievable, Relevant, Time-bound) gives goals the structure they need to be genuinely useful. Overall rating Most review frameworks include an overall rating. Common scales are 1-5 or 1-4 (the latter avoids the "safe middle" problem of a 5-point scale). Whatever scale you use, define clearly what each rating means — and apply it consistently across all employees. How to Write a Performance Review: Step by Step Step 1: Gather your evidence before the review meeting Never write a performance review from memory. Gather: Notes from 1-to-1 meetings throughout the year Goal progress updates Specific examples of strong and weak performance Feedback from colleagues or other managers (where your process includes 360 feedback) Attendance and absence record Using 1-to-1 meeting templates throughout the year means this information is already documented when review time comes. Step 2: Complete the written review before the meeting Don't show up to a review meeting with a blank form. Complete your assessment beforehand. This forces you to be considered and specific, rather than reactive. Send the form to the employee in advance too — give them time to complete their own self-assessment. Step 3: Focus on specifics, not impressions The most common review mistake is writing in generalities. Compare: Vague: "John communicates well and is a team player." Specific: "John led the Q1 client project communications, delivering weekly updates that the client specifically highlighted as helpful. He also supported two new team members through their induction without being asked." Specific examples are harder to dispute, fairer to the employee, and more useful for development planning. Step 4: Balance honesty with support A performance review that identifies no development areas isn't useful. But feedback framed purely as criticism isn't useful either. The goal is honest, balanced feedback that the employee can act on. Use the feedback approach of: evidence → impact → expectation going forward. "When you missed the reporting deadline in February, it meant the finance team had to chase you three times and the report was submitted late to the board. Going forward, I'd expect you to flag in advance if you're struggling with a deadline rather than going quiet." Step 5: Separate ratings from conversation Don't reveal the overall rating at the start of the meeting — this colours the entire subsequent conversation. Cover goals, competencies, and feedback first, then confirm the rating in context. Step 6: Document and sign off