UpTrajectory Review

Susan Thompson's piece in Small Business Trends lays out seven steps for making annual employee reviews genuinely useful rather than a dreaded ritual. The framework is straightforward: gather continuous feedback throughout the year, prepare with relevant data, encourage self-evaluations, deliver specific actionable feedback, set goals collaboratively, and document outcomes with follow-ups. Thompson emphasizes that reviews should not be isolated annual events but part of an ongoing performance conversation. She cites a striking statistic: roughly 92% of employees want feedback more often than once a year, which underscores why the annual review alone often fails to meet employee expectations or drive meaningful improvement.

For small-business operators, this matters because performance reviews are often handled informally or skipped entirely due to time constraints and discomfort with difficult conversations. Yet in a small team, one underperformer or disengaged employee has an outsized impact on morale, productivity, and customer experience. Thompson's advice to gather data continuously and schedule regular check-ins is particularly relevant for owners who wear multiple hats. Building feedback into weekly or monthly rhythms reduces the burden of annual preparation and prevents surprises. The emphasis on self-evaluations is also practical: it shifts some preparation work to the employee and surfaces gaps between self-perception and manager assessment before the formal meeting.

What is genuinely useful here is the insistence on specificity and documentation. Vague praise or criticism helps no one. Thompson's call for clear examples and measurable goals addresses a common failure mode: reviews that feel subjective or arbitrary. We agree strongly with the collaborative goal-setting step. When employees co-create their objectives, they are more likely to feel ownership and stay motivated. However, the piece is somewhat light on handling underperformance or delivering negative feedback, which is often the hardest part for small-business owners. The 92% statistic is compelling but also raises the question: if employees crave more frequent feedback, why cling to the annual review at all? Many small businesses might be better served by quarterly or even monthly check-ins as the primary mechanism, with an annual summary for compensation and promotion decisions.

The second-order effects of adopting Thompson's approach are significant. Regular feedback loops can improve retention, which is especially critical in tight labor markets where replacing an employee costs time and money a small business can ill afford. Documenting performance also provides legal protection if termination becomes necessary. On the flip side, implementing continuous feedback requires discipline and consistency. Owners who start strong but let check-ins slip risk eroding trust. There is also a cultural shift involved: employees accustomed to annual reviews may initially find more frequent feedback intrusive or stressful. Clear communication about the purpose and benefits can ease this transition.

To put this into practice, start by scheduling recurring one-on-one meetings with each employee, even if only 15 to 30 minutes monthly. Use a simple template to track accomplishments, challenges, and goals. Before each annual review, ask employees to complete a self-evaluation and come prepared with their own assessment. During the review, focus on specific behaviors and outcomes, not personality traits. Set two or three measurable goals together and schedule a follow-up within 60 to 90 days to review progress. Watch for signs that feedback frequency is improving engagement, such as higher morale, fewer surprises at review time, and better alignment between individual and business goals. If employees still seem disengaged, consider shortening the feedback cycle further or training managers on delivering constructive criticism.

“about 92% of employees wish they received feedback more often than once a year” — Small Business Trends

Takeaway: Replace the annual review with continuous feedback rhythms, specific examples, and collaborative goal-setting to boost retention and performance.