How to create an employee performance evaluation template + free downloadable employee review template.

The benefits of employee performance review templates.

The benefits of employee performance review templates are multifaceted for both employers and employees. They play a crucial role in managing employee performance, nurturing professional development, and aligning individual goals with organisational objectives. Employee performance appraisals are an opportunity to motivate employees and build on developing all the skills and attributes you need in your employees. Employee performance review templates customized to your workplace can contribute to a culture of transparency, accountability, and continuous improvement.

Some of the main benefits of using a template for employee performance reviews include —

Standardisation and consistency in conducting performance reviews.
Performance review templates provide a standardised and consistent framework for evaluating employee performance. They ensure that all employees are assessed fairly and objectively with pre-established criteria, questions, and rating scales over time and with different employees. They are a tool that you can develop to ensure that you, or other people with responsibility for conducting performance reviews in your organisation, hold consistent and fair performance reviews with all employees.

Communication tools.
Performance appraisal templates are a tool for managers and/or supervisors and employees to communicate, provide constructive feedback, have discussions about career growth, and clarify job expectations. You should customize an employee evaluation template to suit your communication styles and organisational culture. For example, you can design review templates to include questions and criteria to —

• Give feedback to employees
• Ask employees to self-assess their performance
• Receive feedback from employees

Employee review templates are also an effective way to give and receive feedback from your employees so you can get the best out of your working relationships and role expectations.

Focus and structure for both parties in a face-to-face meeting.
Review templates help to provide focus and a clear structure to follow during a performance review. Your employee review template should outline specific performance criteria and goals for your employees in their roles within your organisation. This helps both the person conducting the performance review, and the employee, focus on the review at hand and provides clarity to an employee on what is expected of them.

Employee performance improvement.
Performance review templates help to identify areas where employees excel and areas where they may need improvement. This information can be used to develop targeted training and professional development plans to improve an employee’s skills and competencies.

Goal setting in employment.
Employee evaluation templates should include sections for setting goals. Goal setting at work helps to promote motivation, focus, and accountability. Goals may be set to align with an individual’s future career path with the company. They may also include goals for individuals that align with organisational objectives. Any goals set in employment should be SMART — specific, measurable, achievable, relevant, and time-bound.

Salary and employment benefit adjustments.
Performance appraisals often form the basis for awarding promotions, bonuses, pay increases, and other rewards and employee benefits. Using a template helps to provide a structured approach for assessing your employees' contributions to your organisation, and then determining the appropriate compensation or recognition for everyone.

Key HR templates and HR documentation.
Performance reviews are important HR templates to have. You can use them to document employees’ performance over time because a completed employee performance review records an employee’s achievements, areas for improvement, and goals set during each review period.

HR compliance and employment legislation.
Employee performance reviews may not be required by law in all countries, but there is generally extensive employment legislation that covers fair work and employment relations.

Performance review templates can help to ensure that employee evaluations are based on job-related criteria and free from bias or discrimination. They can provide a record and documentation of an employee’s performance and professional development during their time working with your business.

If you do not have a dedicated HR team to review the wording in any performance appraisal templates you develop or customise, consider engaging an HR consultant to review the wording of the template you plan to use for performance reviews before use.

Different types of templates to review employee performance.

There are several different types of employee performance review templates that organisations can use and adapt. Often organisations create and customize templates for employee performance reviews that combine elements of different types of performance reviews, depending on their organisational needs and goals, the nature of the employment and the roles within it, and the focus of the review.

Some common examples of different types of employee evaluation templates include —

Traditional employee evaluation forms.
Traditional employee performance review forms will typically provide a basic structured format for managers or supervisors to assess an employee’s performance. Sections will usually cover the employee’s information, goals/objectives, performance ratings, strengths, areas for improvement, and overall comments.

360-degree feedback templates.
A 360-degree performance review template will gather feedback from multiple sources in addition to the employee’s manager or supervisor to get a range of perspectives. This may include peers, subordinates, and other employees in an organisation. 360-degree employee evaluation templates often include a combination of rating scales and open-ended to assess the employee’s performance from each person contributing feedback.

Key Performance Indicator (KPI) or goal-based performance review templates.
Templates for goal-based or KPI performance reviews will usually focus on the employee's individual goals and objectives and any key performance indicators that are aligned with the employee’s performance with any organisational objectives. They will include sections to review progress towards measurable goals, accomplishments, challenges faced, and future goals.

Competency-based performance review templates.
Competency-based review templates are used to evaluate and assess an employee’s performance against specific competencies or skills required for their job. They will usually include sections for evaluating how well the employee demonstrates each competency and to provide examples that support and illustrate the employee’s work.

Self-assessment performance review templates.
Templates for self-assessment performance reviews allow employees to evaluate their performance before the review meeting. They will include sections for employees to reflect on their accomplishments, challenges, areas for improvement, and development goals.

Behaviour-based performance review templates.
Employee review templates that are behaviour-based assess an employee’s performance based on specific behaviours or competencies relevant to their employment. Behaviour-based review templates may include descriptions of behaviours and examples of how well the employee demonstrates each behaviour or rating scales that evaluate performance.

Narrative or open-ended performance review templates.
Open-ended or narrative performance reviews ask managers or supervisors to provide feedback in descriptive or narrative form. These templates can provide space for managers to give qualitative feedback on an employee’s performance overall, or they can be broken into sections for descriptive feedback on aspects of an employee’s role or workplace requirements. They allow for more detailed commentary on the employee's strengths, weaknesses, contributions, and areas for growth.

Role-specific performance review templates.
Performance review templates can also be customized to be role-specific. For example —

• Management performance review templates. Templates designed for evaluating the performance of managers and supervisors within the organisation will typically focus on leadership skills, decision-making abilities, communication, and team management.
• Sales performance review templates. To evaluate the performance of sales employees, a performance review template may include metrics such as sales targets, customer satisfaction, and product knowledge.
• Customer service performance review template. Performance review templates for customer service representatives may include criteria such as responsiveness, problem-solving skills, and ability to handle difficult customers.

What to include in an employee performance review template.

Create an employee performance review template that includes sections to effectively assess your employees’ performance, provide constructive feedback, and set goals for improvement and the future.

A performance review template should be customized to suit your organisation’s goals, the roles and positions of your employees, your performance management processes, and your overall organisational culture.

Regularly review and update your performance review template to ensure it remains a relevant and effective tool to evaluate the performance of your employees and encourage professional development, growth, and improvement.

To get started, sections to include in an employee performance review template typically include —

Employee information.
Start with basic details such as the employee's name, position, department, and review period. Performance reviews are usually held quarterly, six-monthly, or annually.

Reviewer’s name and title.
Include space to record the reviewer’s name and title.

Introduction.
Provide an overview of the purpose of the performance review. Emphasize how evaluating performance regularly is important for individual employee development and organisational success. Explain your performance review processes.

Performance evaluation criteria.
Define the key performance areas or competencies relevant to the employee's role. These may include —

• Job-specific skills and competencies
• Goals or key performance indicators (KPIs)
• Time keeping and time management
• Communication, collaboration, and teamwork
• Initiative, proactiveness, and problem solving
• Adherence to company values and policies

Comments on performance.
Allow space for comments or feedback under each performance criterion. Ask for specific examples to support observations and assessments.

Rating scale.
Establish a clear rating scale for each criterion to evaluate performance. This could be numerical (e.g., 1-5, with 1 being unacceptable and 5 being excellent) or descriptive (e.g., Unsatisfactory, Basic, Proficient, Outstanding). Provide definitions in your template for each rating level to ensure there is consistency in evaluation.

Strengths.
Dedicate a section to highlight your employee's strengths and achievements during the review period. Acknowledge and appreciate their contributions to your team and organisation.

Areas for improvement.
Identify specific areas where your employee can improve or develop further. Provide constructive feedback and actionable suggestions for growth.

Goal setting.
Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for the upcoming performance period collaboratively with your employees. Goals should align with the employee's career aspirations and your organisational objectives.

Training and development needs.
Review any training, skill development, or career advancement opportunities that could benefit your employees. Identify resources or support available for their professional growth.

Overall performance rating.
Offer an overall written summary of the assessment, backed with supporting evidence of your employee’s performance. Write this positively, constructively, and based on the feedback and comments provided, and an average of the rating scales you have used.

Follow-up plan.
Outline the next steps, including any follow-up meetings or check-ins to monitor progress on goals and address any concerns or challenges.

Signatures and acknowledgment.
Provide space for the employee and the manager or supervisor conducting the review to sign and date the performance review document to indicate they acknowledge the feedback and future work goals discussed.

What not to put in an employee performance review template.

Some things should not be included in an employee performance review template. It’s important to be mindful of these when you’re designing or customizing a template to help ensure the performance review process is fair, objective, and constructive.

Some things that should not be included in an employee performance review template include —

Personal characteristics.
Employee performance reviews should not focus on personal characteristics such as age, gender, marital status, sexual orientation, ethnicity, religion, or spiritual beliefs. Reviews should focus on job-related performance, skills, and behaviours at work, not personal characteristics.

Unsubstantiated claims.
Generalized or unsubstantiated claims should not be included in performance reviews. Reviews should be based on specific observable and measurable performance and outcomes with concrete examples to support feedback and assessment.

Personal opinions.
Reviews of employees should be objective and based on measurable criteria, not personal opinions or feelings. Avoid language or assessments that could be perceived as discriminatory or unfair.

Too much focus on negatives.
Negative feedback in a performance review is important, if applicable, but it should always be accompanied by suggestions for improvement. Avoid using language that could be perceived as threatening or coercive. Reviews should be constructive and aimed at helping employees improve.

Unrealistic expectations.
Unrealistic performance goals or expectations can demotivate employees and create unnecessary stress. Ensure that the criteria you use in your performance review templates are clear, fair, achievable, and aligned with the employee's role and responsibilities.