Annual performance reviews: here are some useful tips

Salary discussions, employee interviews, skills assessments: the annual meeting with your staff can be called many things. However, every conversation should share one common element: a well-defined structure and thorough preparation.

Here you’ll find nine useful tips to help you get the most out of the annual performance review and prepare for it properly.

Remember to carefully consider these 9 points during the annual review with employees.

Interview form

A standard form is the most important basis for the employee interview, and it applies in the same way to every employee. It’s important that both you, as the manager, and the employee have the chance to read the form in advance and jot down your thoughts and notes on it.

Communication

Communicate the salary or qualification discussion with enough notice so that employees can be prepared.

Goals

Has the employee met their annual goals? If not, why? Meeting goals is linked to salary or bonus: if the goal is successfully achieved, there’s no reason why the employee shouldn’t receive the agreed pay

Absences

How many days of holiday are still available, and how many sick days did the employee take the previous year? If someone consistently exceeds their holiday allowance or has a high number of unjustified sick days, that could be a valid argument against a pay rise.

Salary

What is the current salary level and how has it changed over the course of employment? Is the salary in line with the sector and the role? Check the typical minimum and maximum salaries. Also consider years of service, training and professional experience. This can help support your point of view.

Further training

Has the employee taken part in further training at their own expense or at the company’s expense? If the employee is personally funding training that contributes to achieving your goals, then they deserve recognition.

Pay components

Is there a company car? Who pays for parking? This topic could be included in a salary negotiation. For example: the employee’s parking costs CHF 180 a month. The costs are covered by the company. This could be considered a pay component.

Transparency

Only close the conversation once it’s clear what happens next, before discussing pay again at a later date, for both parties.

Formalities

Please fill in the form together with the employee again, get the pay discussion form signed, and give the employee a copy after the conversation.

If you consider all these aspects in advance and are honest with the employee, there won’t be any problems.

Fill in the interview form regularly

It’s essential to complete the assessment form in advance. It’s best to do this more often than once a year, for example every three months. This information can be useful during the salary discussion.

Example: the employee showed great commitment and dedication in completing the project, working beyond the planned hours and successfully delivering the work.

Consider this: imagine you were an employee of yourself. Would you expect a pay rise? Remember that your staff don’t have the same knowledge of the company’s finances as you do. The argument “we made fewer sales this year” isn’t always valid on its own. What does it actually mean? Does it mean that instead of CHF 450,000, there’s only CHF 430,000?

Set goals for teams

You can also set team goals together. This strengthens a sense of unity and belonging within the group. Team members then make sure that everyone is working towards the same goals. Make sure to set measurable goals.

The employee assessment form also serves as a checklist. If the employee has met all their goals, completed further training at their own expense and never had unjustified sick leave, it’s certainly hard not to grant a pay rise. Ultimately, it’s up to you as the employer to make the decision.

Conclusion

The annual performance review is a strategic opportunity to strengthen the relationship between company and employee, align expectations and assess performance, goals and growth prospects in a structured way. Even when salaries are set by collective labour agreements, this moment of dialogue remains essential for recognising the employee’s contribution and discussing development paths, training or additional benefits.

Thorough preparation, clear criteria and transparent communication make the annual review an effective tool for motivating and retaining staff.
If you’d like support in structuring annual reviews, managing HR or defining salary policies in line with Swiss regulations, get in touch: easy4you supports SMEs with practical solutions and tailored advice for more effective and sustainable human resources management.