Performance Reviews & Compensation Basics

The single biggest predictor of whether employees find performance reviews useful is whether they receive feedback throughout the year, not just at review time. A review should be a summary of an ongoing conversation. Never a revelation. If someone is surprised by their review, the system has failed.

  • Come prepared with specific examples and stakeholder input
  • Balance strengths and development areas honestly
  • Performance drives compensation: not tenure or personality
  • Watch for equity patterns in how rewards are distributed
  • Confidentiality is non-negotiable until changes are formally approved
  • Be prepared to explain the “why” even if you didn't make the final call