Employee retention vs turnover? How to know the difference
Published on
September 8, 2021
If you've ever had to manage an incomplete work team, you know it's hard. You need to put in extra work to support overworked employees, and might have to deal with low morale and low productivity. All this on top of the stress of finding a competent new hire to support the team. This is where you find yourself in the midst of the challenges of managing employee retention and turnover.
Although retention and turnover are terms that you’ve probably heard, they may be concepts that you don’t fully understand. Two calculations that seem relevant for HR but not so much for you as a manager. But managers have a big influence on employee retention rates. Not only that, but they’re the ones who suffer the most direct consequences when someone leaves their team. So, let's get down to business and talk about the nuts and bolts of retention and turnover.
What is employee turnover?
The percentage of workers that leave an organization and are replaced by a new hire in a given time period is the company's turnover rate. When one employee leaves and a new employee fills their position, this is a piece of the company's turnover.
Terminology tip: When an employee leaves but not replaced, this is called employee attrition. Attrition happens when people retire, roles are abolished, or when the manager or company simply decides not to make a new hire in their place.
Types of turnover: voluntary and involuntary
Employee turnover can be involuntary or voluntary. Involuntary turnover happens when the organization decides to end the work relationship with the employee. It could happen due to poor performance, confrontational or inappropriate employee behavior, a breach in their contract, or some other valid reason.
Voluntary turnover, on the other hand, happens when employees decide to leave the organization of their own volition. This happen for many different reasons. Some causes of employee turnover include values misalignment, a more enticing career opportunity, or a lack of development opportunities.
Of course, some voluntary departures are unavoidable and not really related to the organization. For example, an employee whose spouse has been relocated or a colleague leaving to take care of an ailing family member. However, voluntary turnover is often avoidable, and it's important to closely monitor it by calculating it quarterly or even monthly.
What is employee retention?
Employee retention, sometimes referred to as a company's stability index, is the number of workers that stay in a company in a given time period. Retention also refers to all the strategies companies use to keep their employees happy and engaged, so they stay working for them. Working to understand and improve the employee experience within the organization is the first step.
A company where the employees feel valued and well treated is more likely to have higher retention. Think about your own job, have you been with the same employer for a while? If so, why? Growth opportunities, a good benefits package, a competitive annual salary, and a good work-life balance are some of the common reasons people decide to stay with an organization.
Employee retention vs turnover
Both turnover and retention are good indicators of an organization’s health. Each measures employee engagement and loyalty, which are ultimately linked to employee engagement and productivity. Put together, these measurements give a good idea of how stable a company's workforce is.
Retention doesn't bring new hires into the equation, but turnover does. Newly hired employees can't indicate anything in regards to retention because they haven't really 'stayed' with the company. However, if new hires decide to leave, that's definitely worth investigating.
Calculating employee turnover & retention rates
Tracking these numbers can help you understand and minimize turnover's negative impact and consider investing in employee retention strategies. Although at first glance they may seem like exact opposite concepts, that’s not actually true. How you calculate turnover doesn't line up with how you calculate retention. A good indicator of that is that the sum of both rates doesn't necessarily add up to 100%.
Employee turnover is calculated by dividing the number of terminations by the average number of employees in a given timeframe, and multiplying this number by 100.
Employee retention is calculated by dividing the number of employees that worked a whole time period by the number of active employees at the start of that time period, and multiplying this number by 100.
For example: Be Happy Corporation has 80% retention and a 23% turnover, which totals 103%. Why is that? Let's look at the calculations together...
Be Happy’s calculations show that in 2020 they had an 80% retention rate. They started the year with 100 employees, but only 80 of them worked all 12 months. They didn't take into account new hires, only employees who worked the whole year. On the other hand, Be Happy had 24 not-so-happy employees, who left the company during this time. With a monthly average of 105 employees, Be Happy ended up with an annual turnover rate of 23%.
How to fight turnover and increase retention
It's very important for managers to fight turnover and increase retention on their teams. Here are some strategies to help you out.
Perform exit interviews
These are interviews that take place once an employee has made the decision to leave the company. While you're unlikely to change their mind, you can seize the opportunity to get honest feedback about their departure. After a successful exit interview, you should have a good insights on how you might improve job satisfaction and engagement for your remaining team members.
Intervention by direct managers
Managers can help decrease turnover rates by simply listening to their team members. Based on the feedback they get, they can make changes or implement solutions to improve the employee experience on their team. Employee engagement surveys and one-on-one meetings are great opportunities to check in with what's going well and what's challenging for your team members. Officevibe sends out regular pulse surveys with easy-to-read reports for managers, collects employee feedback directly, and helps you host better one-on-ones, all in one platform.
Measure your eNPS with Officevibe
An important part of the engagement metrics in Officevibe is the employee Net Promoter Score, a tool that helps to track employees' loyalty and pride for the organization.
The eNPS is calculated by anonymously asking employees how likely they are to recommend working at your organization. On a scale of 1 to 10, those who answer 9 or 10 (i.e., are very likely to recommend working at your company) are considered promoters. Those who answer 7 or 8 are considered passive and those who answer 6 or less are considered detractors.
Although the eNPS doesn't necessarily reflect retention and turnover rates, it can give us a rough idea of how happy employees are, and how inclined would they be to explore other opportunities.
Now that you have a good idea of what turnover and retention are, you can put into practice the given strategies to boost employee engagement and minimize avoidable turnover and its negative consequences.
If you've ever had to manage an incomplete work team, you know it's hard. You need to put in extra work to support overworked employees, and might have to deal with low morale and low productivity. All this on top of the stress of finding a competent new hire to support the team. This is where you find yourself in the midst of the challenges of managing employee retention and turnover.
Although retention and turnover are terms that you’ve probably heard, they may be concepts that you don’t fully understand. Two calculations that seem relevant for HR but not so much for you as a manager. But managers have a big influence on employee retention rates. Not only that, but they’re the ones who suffer the most direct consequences when someone leaves their team. So, let's get down to business and talk about the nuts and bolts of retention and turnover.
What is employee turnover?
The percentage of workers that leave an organization and are replaced by a new hire in a given time period is the company's turnover rate. When one employee leaves and a new employee fills their position, this is a piece of the company's turnover.
Terminology tip: When an employee leaves but not replaced, this is called employee attrition. Attrition happens when people retire, roles are abolished, or when the manager or company simply decides not to make a new hire in their place.
Types of turnover: voluntary and involuntary
Employee turnover can be involuntary or voluntary. Involuntary turnover happens when the organization decides to end the work relationship with the employee. It could happen due to poor performance, confrontational or inappropriate employee behavior, a breach in their contract, or some other valid reason.
Voluntary turnover, on the other hand, happens when employees decide to leave the organization of their own volition. This happen for many different reasons. Some causes of employee turnover include values misalignment, a more enticing career opportunity, or a lack of development opportunities.
Of course, some voluntary departures are unavoidable and not really related to the organization. For example, an employee whose spouse has been relocated or a colleague leaving to take care of an ailing family member. However, voluntary turnover is often avoidable, and it's important to closely monitor it by calculating it quarterly or even monthly.
What is employee retention?
Employee retention, sometimes referred to as a company's stability index, is the number of workers that stay in a company in a given time period. Retention also refers to all the strategies companies use to keep their employees happy and engaged, so they stay working for them. Working to understand and improve the employee experience within the organization is the first step.
A company where the employees feel valued and well treated is more likely to have higher retention. Think about your own job, have you been with the same employer for a while? If so, why? Growth opportunities, a good benefits package, a competitive annual salary, and a good work-life balance are some of the common reasons people decide to stay with an organization.
Employee retention vs turnover
Both turnover and retention are good indicators of an organization’s health. Each measures employee engagement and loyalty, which are ultimately linked to employee engagement and productivity. Put together, these measurements give a good idea of how stable a company's workforce is.
Retention doesn't bring new hires into the equation, but turnover does. Newly hired employees can't indicate anything in regards to retention because they haven't really 'stayed' with the company. However, if new hires decide to leave, that's definitely worth investigating.
Calculating employee turnover & retention rates
Tracking these numbers can help you understand and minimize turnover's negative impact and consider investing in employee retention strategies. Although at first glance they may seem like exact opposite concepts, that’s not actually true. How you calculate turnover doesn't line up with how you calculate retention. A good indicator of that is that the sum of both rates doesn't necessarily add up to 100%.
Employee turnover is calculated by dividing the number of terminations by the average number of employees in a given timeframe, and multiplying this number by 100.
Employee retention is calculated by dividing the number of employees that worked a whole time period by the number of active employees at the start of that time period, and multiplying this number by 100.
For example: Be Happy Corporation has 80% retention and a 23% turnover, which totals 103%. Why is that? Let's look at the calculations together...
Be Happy’s calculations show that in 2020 they had an 80% retention rate. They started the year with 100 employees, but only 80 of them worked all 12 months. They didn't take into account new hires, only employees who worked the whole year. On the other hand, Be Happy had 24 not-so-happy employees, who left the company during this time. With a monthly average of 105 employees, Be Happy ended up with an annual turnover rate of 23%.
How to fight turnover and increase retention
It's very important for managers to fight turnover and increase retention on their teams. Here are some strategies to help you out.
Perform exit interviews
These are interviews that take place once an employee has made the decision to leave the company. While you're unlikely to change their mind, you can seize the opportunity to get honest feedback about their departure. After a successful exit interview, you should have a good insights on how you might improve job satisfaction and engagement for your remaining team members.
Intervention by direct managers
Managers can help decrease turnover rates by simply listening to their team members. Based on the feedback they get, they can make changes or implement solutions to improve the employee experience on their team. Employee engagement surveys and one-on-one meetings are great opportunities to check in with what's going well and what's challenging for your team members. Officevibe sends out regular pulse surveys with easy-to-read reports for managers, collects employee feedback directly, and helps you host better one-on-ones, all in one platform.
Measure your eNPS with Officevibe
An important part of the engagement metrics in Officevibe is the employee Net Promoter Score, a tool that helps to track employees' loyalty and pride for the organization.
The eNPS is calculated by anonymously asking employees how likely they are to recommend working at your organization. On a scale of 1 to 10, those who answer 9 or 10 (i.e., are very likely to recommend working at your company) are considered promoters. Those who answer 7 or 8 are considered passive and those who answer 6 or less are considered detractors.
Although the eNPS doesn't necessarily reflect retention and turnover rates, it can give us a rough idea of how happy employees are, and how inclined would they be to explore other opportunities.
Now that you have a good idea of what turnover and retention are, you can put into practice the given strategies to boost employee engagement and minimize avoidable turnover and its negative consequences.
Equip HR and managers with tools to engage, recognize, and drive performance.
Why annual reviews fail and what HR can do to prevent it: Insights from our latest webinar
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Annual performance reviews have long been a cornerstone of workplace culture, but are they serving employees and organizations effectively? In a recent Workleap webinar, our expert panel tackled this question head-on, exploring why traditional performance reviews often fall short and what HR leaders can do to create a more effective, continuous performance management system.
Featuring insights from Ricky Muddimer, Co-founder at Thinking Focus; Irina Mocanu, Senior HR Advisor at Workleap; and Brian O'Reilly, Performance Management Product Director at Workleap, the discussion left attendees with actionable takeaways for driving meaningful change in their organizations.
Here’s a recap of the key insights and strategies shared during the session.
Annual reviews may be the standard but they’re failing organizations (here’s why!)
Annual reviews have been the default approach for decades, but as workplace needs evolve, many organizations are questioning their effectiveness. During the webinar, we ran two polls to better understand how organizations approach performance management. The results were revealing:
What is your organization's performance review cadence?
66% rely on formal annual reviews.
16% use formal quarterly or monthly reviews.
9% provide informal, ongoing real-time feedback.
9% have no formal process at all.
Poll answers from our recent Workleap webinar, "Why annual reviews fail and how HR can prevent it"
How would you rate your current performance review process?
Only 3% said it’s "going really well."
19% feel it’s working but could use minor tweaks.
47% admitted it could be improved.
31% said it needs a major overhaul.
Poll answers from our recent Workleap webinar, "Why annual reviews fail and how HR can prevent it"
These results highlight the problem: while annual reviews remain the standard, they often fail to deliver on their promise of fostering engagement and driving performance. “The annual review isn’t the issue in itself,” said Irina Mocanu. “The issue arises when it’s the only touchpoint for feedback all year long.”
This gap leaves employees feeling blindsided and disengaged. When feedback is only delivered once a year, it’s impossible to address problems early or celebrate successes when they happen.
4 ways to improve your performance management approach
If annual reviews are just one piece of the puzzle, what does an effective performance management system look like? During the discussion, the panel outlined four foundational principles:
1. Create a regular rhythm of feedback
Regular check-ins between managers and employees are critical for keeping communication lines open. These touchpoints prevent surprises during formal reviews and allow managers to address issues early. Ricky Muddimer emphasized that the frequency of these check-ins should depend on the organization.
“Rhythm means addressing issues early — when someone needs a little support, for example — and celebrating successes consistently. Whether it’s daily, weekly, or bi-weekly, find a cadence that works for your team,” he says. “It’s important to do a sense check of how your people are doing so there are no surprises come the annual review”
2. Establish a compelling "why”
Performance management should feel valuable for everyone involved. As Ricky explained, “When managers and employees view performance management as an opportunity for growth and connection, it becomes something they actively want to participate in.” Employees want to know their managers are invested in their development, and managers need to see these conversations as opportunities to build stronger teams.
3. Keep it simple
Performance management often gets bogged down by administrative tasks and bureaucracy. But the focus should always be on people. Ricky put it best: “Your performance management approach has to be simple and easy to use. It must prioritize people over the process.” Simplicity ensures managers and employees can spend their energy on meaningful conversations, not paperwork.
4. Monitor your approach
A great performance management system isn’t a one-and-done implementation — it requires continuous refinement. As Irina emphasized, “Monitor what works, what doesn’t work, and adapt. If you stop, in three years, you’ll realize your performance management system is out of date.”
To keep processes relevant and effective, HR teams should regularly assess their approach, gather feedback from managers and employees, and make small, incremental improvements rather than waiting for major overhauls.
Overcoming barriers to continuous feedback
Transitioning from annual reviews to a more continuous feedback model isn’t easy, but the benefits are undeniable. The panel shared their thoughts on the most common challenges organizations face — and how to overcome them.
Cultural shifts take time
Implementing a new performance management system often requires a cultural transformation. The panelists encouraged HR leaders to be patient with this process: “Start small and implement changes incrementally rather than overhauling the entire system at once. Progress, not perfection, should be the goal.” By starting with small wins, organizations can gradually build a foundation for larger changes.
Managers need support
One of the biggest barriers to continuous feedback is managers’ reluctance to have difficult conversations — and the HR leaders agreed wholeheartedly in the webinar chat.
“Often managers aren’t comfortable/haven’t had enough training [on how to have] difficult conversations and giving and receiving feedback,” one attendee shared. “The problem is everything in training sounds great until it has to come out of your own mouth,” said another HR leader.
To help managers build confidence in performance conversations, organizations need to reinforce training with ongoing support and accountability. As Irina and Ricky pointed out, training alone isn’t enough — HR leaders need to check in with managers regularly to understand their challenges and ensure feedback is meaningful and actionable.
One approach is setting clear expectations, like Amazon’s leadership principles, which define how managers should foster high-performing teams. Another is directly evaluating managers on how well they implement continuous feedback and whether their team is high-performing. Ultimately, driving this cultural shift requires not only equipping managers but also empowering employees to take ownership of their performance and feedback.
Many managers, especially leader do-ers juggling multiple roles, struggle to make time for regular check-ins. Day-to-day operations often take priority, making structured performance conversations an afterthought. However, avoiding these discussions can lead to bigger issues down the line.
Managers already spend time addressing problems caused by a lack of clarity. Instead of reacting to issues, a proactive approach — setting clear expectations and providing regular feedback — prevents problems from escalating. Organizations that prioritize frequent check-ins see fewer performance gaps and build stronger, more engaged teams.
How technology can help
Technology has become an essential tool for streamlining performance management and reducing administrative burdens. Brian O’Reilly shared how Workleap’s tools are designed to make performance management easier and more impactful.
“Having a central spot to document one-on-ones and goals ensures no progress gets lost or forgotten,” Brian explained. Tools that centralize feedback and provide insights — both quantitative and qualitative — make it easier for managers to focus on meaningful conversations.
AI also plays a role in enhancing performance management. “One of the major issues of the annual review model is recency bias,” Brian said. “AI, in conjunction with using the right tools and having access to the right performance insights, can help give managers extra context and cognitive load.” This allows managers to consider an employee’s entire body of work rather than focusing on recent events.
Voices from the webinar chat
Throughout the webinar, attendees actively engaged in the discussion, sharing their own challenges and perspectives on performance management. Their insights reinforced the importance of consistency, effective feedback, and balancing accountability with empathy. Here are a few standout comments that resonated:
On leaders being consistent: “My mantra has always been: be fair and consistent in all you do and who you interact with. That goes a long way.”
On feedback as an opportunity: “We need to teach people how to have difficult conversations, not just conversations. Start with the positive and position feedback as an opportunity for growth.”
On balancing humanity with performance: “There are ways to ensure that people understand they are valued and that it’s human not to be perfect. That notwithstanding, we need to be honest — in strict behavioral terms — about areas of improvement.”
These comments reflect the shared challenges and aspirations of HR leaders striving to make performance management more human and effective. Kick off your performance revamp with these key takeaways Bringing all these insights together, our panelists shared essential takeaways for HR leaders looking to transition from outdated performance reviews to a more continuous, human-centered approach:
Redefine performance: Start by defining what performance means in your organization. At Workleap, we focus on two dimensions: behaviors (e.g., embracing change, innovation) and accomplishments (e.g., the impact of work). “Defining performance criteria that align with your culture is essential,” Irina said.
Integrate feedback into existing rituals: Reinforcing continuous feedback doesn’t mean reinventing the wheel. "When you embed continuous feedback sharing into existing ways of working, it becomes a much more natural process and it’s much easier for leaders to build this reflex,” says Irina.
Engage employees and managers: Equip managers with the tools, training, and support they need to have meaningful conversations and empower employees to take ownership of their own growth. It’s important to constantly remind them of your “why,” so they can feel accountable.
Refine and adapt: Gather feedback after implementation to refine the process. As Ricky noted, “This is about progress, not perfection. Set incremental goals and adjust as needed.”
Want to dive deeper? Catch the full conversation and get expert insights on how to transform performance management
The insights shared during this webinar are just the beginning. To hear more about how to navigate cultural shifts, leverage technology, and foster a culture of continuous feedback, watch the full recording. Transforming performance management isn’t easy, but the rewards — increased engagement, better alignment, and stronger teams — are well worth the effort.
Performance Management
Mastering employee performance reviews: A guide for managers
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When you hear "performance review," what comes to mind? As a manager, do you think of it as a once-a-year task that's just part of your checklist? Or perhaps, do you think of it as a laborious process with no clearly useful output?
Rest assured; the performance review process can be utilized strategically and absolutely be done in a way that is structured, effective, and impactful.
In this article, you'll find your ultimate guide to employee performance reviews. We'll walk you through the essential steps involved in conducting effective performance reviews and provide guidance on what a successful review should look like — before, during, and after. When done right, they can contribute to employee growth, development, and higher business performance.
What is an employee performance review?
Let's first cover the basics. At its core, a performance review is a structured process that evaluates an individual's job performance and provides constructive feedback. Performance reviews are an essential part of the performance management process and support goal-setting, monitoring, and accountability.
Traditionally, a performance review has been an annual event, but in the modern workplace, with continuous performance management gaining traction, performance reviews have taken different forms — be it regular check-ins or ongoing feedback to foster employee development and improvement. In this new era of performance management, managers become more like coaches who empower their employees to reach their full potential.
Performance reviews don't have to be complicated, just as long as you don't undervalue their power either. They offer numerous benefits for both individuals and organizations at every level. They:
Improve communication
Identify strengths and weaknesses
Facilitate goal setting
Enhance employee engagement
Strengthen employee-manager relationships
By investing in performance reviews, you pave the way for continuous improvement and foster a more positive work culture.
Key elements of an effective performance review
Performance reviews play a crucial role in driving employee growth and development while contributing to higher business performance. To conduct impactful performance reviews, it's essential to incorporate key elements that foster a supportive, collaborative, and ultimately thriving environment.
Here are the key elements of an effective performance review process:
Frequent review cycles
Break away from the anxiety-inducing annual performance review and normalize conversations about performance. Implementing regular review cycles allows for ongoing feedback, ensuring employees stay on track and have the opportunity to grow continuously.
For example, quarterly or monthly check-ins provide timely feedback and help address any performance gaps promptly.
Two-way conversations
Performance reviews shouldn't be one-sided. By involving employees in two-way conversations, you demonstrate that their opinions and insights are valued, fostering a sense of ownership and engagement.
Encourage open dialogue and create a space for employees to share their perspectives, offer suggestions, and actively participate in the review process.
Focused on improvements
Modern performance reviews shift the focus from dwelling on past mistakes to emphasizing growth and development. By adopting a forward-thinking approach, you inspire a growth mindset and create a culture that supports continuous learning and development.
Encourage employees to reflect on their experiences, learn from them, and set goals for improvement.
Transparent and honest
Transparency and honesty are paramount in fostering trust between managers and employees. Establish clear communication channels to ensure employees understand how their performance is being assessed and how feedback will be provided.
Transparency also involves clearly communicating the evaluation criteria and ensuring employees have access to the necessary resources for improvement.
Fair and objective review process
A fair and objective review process is essential for employee morale and engagement. Use standardized evaluation criteria that are consistently applied across the organization. This helps maintain fairness and ensures that employees feel their performance is evaluated on an equal basis.
Objective evaluations foster trust and provide employees with a sense of confidence in the review process.
How to prepare for a performance review
To conduct an effective performance review, managers need to prepare in advance. Here are the key prep steps to get ready:
1. Align on performance evaluation criteria
Performance evaluations require a clear understanding of the criteria and metrics used to assess employee performance. It's essential for managers and employees to have a shared understanding of what constitutes good or poor performance.
For example, you might establish criteria such as meeting project deadlines, demonstrating strong communication skills, or displaying proactive problem-solving abilities. By aligning these criteria, you can ensure fairness and consistency in your evaluations.
2. Gather employee data and examples
To provide meaningful performance feedback, gather relevant qualitative and quantitative data, as well as examples that illustrate an employee's performance.
There are different methods of performance evaluation, all of which can be pooled to build a comprehensive performance picture. Qualitative data can come from employee self-evaluation, peer reviews, or supervisor assessments. Whereas quantitative data can come from sales figures or other productivity metrics.
By collecting a range of data and examples, you'll have a well-rounded view of the employee's performance that considers all factors — not just numbers.
3. Use a performance review template
Templates exist for a reason. They provide a pre-existing structure from which you can build on and customize. They also save you time!
Performance review templates provide a set of targeted questions that guide you through each aspect of the review, ensuring you cover all relevant areas with your employee. Using a template saves prep time and helps maintain consistency across each team member's evaluation. It also ensures that no important topics or questions are overlooked.
Officevibe includes performance review templates designed to make the review process even more streamlined, effective, and data-driven.
Use performance review templates in Officevibe.
4. Prepare a meeting agenda
Before the performance review meeting, create a detailed agenda to guide the discussion. Outline the specific topics you want to cover, such as achievements, areas for improvement, and future goals. Consider including specific examples or projects to discuss during the meeting.
Having a clear agenda helps keep the conversation focused and ensures that all important points are addressed. It also shows employees that you have taken the time to prepare and value their performance.
👀 Check out our one-on-one meeting agendas that cover most manager-employee scenarios, including performance reviews, performance improvement plans, career development, and more!
5. Schedule your performance review meeting
Set a date and time for the performance review that works for both you and the employee. Choose a time when you can give your undivided attention and create a comfortable environment for open and honest conversation.
Avoid scheduling the review during particularly busy or stressful periods to ensure you can devote sufficient time and attention to the discussion. Scheduling the meeting in advance demonstrates your commitment to the employee's growth and development.
By following these steps and adequately preparing for the performance review, you set the stage for a productive and valuable discussion with your employees. Effective preparation ensures that you have the necessary information, structure, and focus to provide meaningful feedback and pave the way for future growth.
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How to conduct an employee performance review
Now that you're prepared, let's explore how to conduct an effective performance review. This is the time to engage in a productive conversation that supports employee growth and development.
The following guidelines provide the performance review framework you need to promote employee development, foster positive relationships, and drive organizational success:
1. Set a positive and constructive tone during the review
Approach the review with a supportive and coaching mindset. It's critical to create a safe space for open dialogue, which fosters collaboration much better than when employees don't feel like they have input. Remember that the goal is to empower employees in their future performance by emphasizing what they are capable of rather than reinforcing what they may not be doing well enough.
2. Share positive feedback and recognition
Similar to the compliment sandwich approach, balancing positive feedback with areas for improvement can go a long way. Make sure to share your own feedback and words of acknowledgment to strengthen your manager-employee bond. Additionally, pass on any feedback you received from other colleagues or leaders, which could help the employee feel valued and appreciated.
3. Offer constructive feedback
Discuss any performance challenges or areas of underperformance directly and constructively. By framing things in a constructive way and using specific examples to illustrate your points, you provide more actionable solutions for growth. Navigate difficult conversations with empathy and a focus on finding solutions together.
Need the inspiration to find high-quality feedback? Here are 22 constructive feedback examples and tips to help you deliver feedback that gets results.
4. Give specific examples
By providing specific examples, you can ensure clarity and facilitate productive discussions. Make sure to back up your feedback with concrete examples to make it more impactful and actionable. Contextualizing feedback with current and past performance examples, helps employees understand the specific behaviors or situations that need improvement or reinforcement.
5. Address performance challenges
During the review, address any performance challenges or areas of underperformance directly and constructively. There are many ways to approach poor work performance issues, just remember to lead these conversations with empathy and a focus on finding solutions. By addressing challenges head-on, you can work together with the employee to identify strategies for improvement and growth.
Granted, some conversations are a little bit more difficult than others. Hey, managers are only human. Read our difficult conversation tips to ensure the message (and solution) isn't getting lost in translation.
6. Listen actively
During the performance review, practice active listening to show genuine interest in the employee's perspective. Pay attention to their thoughts, concerns, and aspirations. By actively listening, you create an environment where employees feel heard and valued, fostering trust and engagement.
By involving employees in the process of defining the next steps, you empower them to take ownership of their growth and development.
Remember, conducting a performance review is not just a one-time event but part of an ongoing performance management system. Ultimately, ensuring continuous feedback and regular check-ins throughout the year helps set, align, and adjust employee goals when appropriate, which contributes to employee growth and success.
What to do after a performance review
The performance review doesn't end with the meeting. Here's what you can do to ensure continuous improvement and growth.
1. Follow up on the next steps
After the performance review, it's crucial to stay involved and provide ongoing support. Follow up on the next steps that were identified during the review. Schedule frequent one-on-ones and other touchpoints to monitor progress and measure results. This demonstrates your commitment to the employee's growth and helps ensure they are on the right track toward achieving their goals.
🤔 Not sure how often to schedule one-on-ones? Find your best formula for one-on-one frequency.
For example, if one of the next steps identified during the review was for the employee to improve their time management skills, you can schedule a follow-up meeting a month later to discuss their progress. During this meeting, you can ask specific questions about their strategies for improving time management, inquire about any challenges they may have encountered, and provide additional guidance or resources if needed.
By following up on next steps, you show that you are invested in your employees' success and provide an opportunity for course correction or further development.
2. Keep the performance conversation going
Embrace the beauty of continuous performance cycles by conducting regular check-ins and one-on-one meetings. These ongoing conversations provide opportunities to discuss progress, address challenges, and provide timely feedback. By maintaining an open line of communication, you can support employees in their growth journey and ensure that performance remains a priority.
For example, you can schedule bi-weekly or monthly one-on-one meetings with your employees to discuss their ongoing projects, address any obstacles they may be facing, and provide guidance or feedback. These meetings create a space for employees to share their achievements, seek guidance on their work, and discuss any new challenges that may have arisen, to assess at your next employee performance review. By keeping the performance conversation going, you demonstrate your commitment to their development and create an environment where continuous improvement is encouraged.
Officevibe supports continuous performance management. This feature provides tools and resources to facilitate ongoing feedback, goal tracking, and one-on-one meetings!
Effective performance review phrases to use in your next review
Crafting meaningful feedback is key to a successful performance review. Here are some examples of performance review phrases, be them appraisals or constructive, to inspire your next review:
Creativity: "Your innovative thinking has led to impressive solutions, pushing our team to new heights."
Communication: "Your clear and concise communication style has greatly improved team collaboration and project outcomes."
Accountability: "You consistently take ownership of your responsibilities, delivering results with a high level of accountability."
Productivity: "Your exceptional time management skills and efficient work habits have significantly increased productivity within the team."
Collaboration: "Your collaborative approach fosters a positive team environment, encouraging open communication and idea-sharing."
Coaching: "Your dedication to mentoring team members has empowered them to grow and excel in their roles."
Areas of improvement: "To further enhance your performance, focusing on improving your presentation skills will help you engage stakeholders more effectively."
Problem-solving: "Your analytical thinking and resourcefulness have consistently resulted in creative problem-solving and successful outcomes."
Again, following up on any performance feedback with specific examples will make the feedback itself more impactful by giving it context. This will also show the employee you gave the feedback thought. For example, you could pair praise about problem-solving with something along the lines of: "Last month, when we had an issue with project X, you managed to fix this by doing A, B, and C and that ensured we could deliver on time! Thank you."
⭐️ Find more examples of employee feedback that creates an impact, especially relating to more sensitive issues like the need for additional training or failing to meet deadlines, and best practices for delivering them.
Use performance management software
Theoretically, you can master your performance review approach all on your own. Logistically, however, there are ways you can make the entire performance management process infinitely easier for yourself (and your employees).
Performance management software like Officevibe turns the review process into a fun and dynamic aspect of the employee experience. With data-driven features such as goal setting, continuous feedback, and performance tracking, it simplifies, streamlines, and enhances the entire performance review process, making it fair, efficient, and engaging for both managers and employees.
By utilizing performance review software, you can maximize the benefits of performance management, foster employee development, and cultivate a positive work culture.
Elevate growth, engagement, and success with Officevibe
Mastering the art of employee performance reviews is essential for managers looking to drive growth, engagement, and success within their teams. By following the key steps outlined in this guide, you can conduct effective performance reviews that inspire improvement, empower employees, and contribute to overall organizational success.
Remember, performance reviews should be a collaborative and continuous process that prioritizes growth, feedback, and open communication. Embrace the opportunity to support your employees' development and create a culture of excellence!
Inside Workleap
Workleap Fall Launch: Empowering HR Leaders with New Features for Employee Growth and Engagement
Save your seat
MONTRÉAL — Nov. 25, 2024 — Workleap, a leading Canadian software company behind products that empower 20,000 companies in more than 100 countries to build better employee experiences, announces its fall platform release introducing new solutions and integrated features into an all-in-one simple-to-use platform. This release marks a new milestone in Workleap’s ongoing commitment to transform the employee experience by empowering HR leaders to drive organizational performance and achieve business goals.
Workleap’s comprehensive platform helps HR lead organizations to thrive in the modern setting of hybrid, remote, and distributed work environments. The consolidated solution for understanding employee engagement, driving performance, and developing employees is the best add-on to your existing HRIS and HR technology, allowing companies to add simple experiences across the employee lifecycle. Bringing these functions together in one platform, Workleap enables HR professionals to create a more responsive, agile and employee-centric work environment.
What's New
Workleap Performance streamlines performance management reviews and enables HR teams to guide managers to provide meaningful feedback, align teams with business goals, and easily track progress—all in one place.
Workleap Pingboard, an intuitive org-chart, visualization, and company building solution, will be integrated within the Workleap platform before the end of the year.
Integrated tools to help HR: Easily visualize employee engagement data within your org chart, streamline onboarding and learning workflows, accelerate content creation with AI designed for HR, and launch custom surveys across the employee journey.
Unmatched value: Game-changing bundled pricing lowers the barrier for HR teams of any size to enhance the employee experience.
Why It Matters
“Hybrid work has completely reshaped the role of HR. It’s no longer just about managing employees—it’s about building the right frameworks, fostering authentic connections, and leveraging tools that drive meaningful outcomes,” said Simon De Baene, Co-founder and CEO of Workleap. “At Workleap, our mission is clear: make work simpler. The Workleap platform brings together the tools HR teams and leaders need to focus on what matters most—creating workplaces where people feel supported, connected, and empowered to grow. By continuing to invest in our platform, we’re accelerating innovation with solutions like Workleap Performance—designed to be simple, effective, and built to keep HR and leaders ahead as the future of work evolves.”
To learn more about Workleap’s employee experience platform, visit workleap.com.
About Workleap Workleap is the best add-on to your HRIS to build better employee experiences. The all-in-one Workleap platform empowers organizations to make work simpler by unifying onboarding, engagement, performance, and development —in one platform.
Workleap is a Montréal, Canada-based company building the operating system for hybrid work—unifying the experience to streamline talent management and scale productivity tools across 20,000 companies in more than 100 countries.
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