Calgary Employment Lawyers Advising Employers on Performance Reviews

Regular performance reviews help Alberta employers set expectations, recognize strong performance, address concerns early and create a reliable record of an employee’s development and performance over time.

What Is an Employee Performance Review?

An employee performance review is a structured discussion between an employer and an employee about the employee’s work, progress, strengths and areas for improvement.

A good performance review should look both backward and forward. It should assess how the employee has performed during the review period while also establishing clear expectations and development priorities for the months ahead.

Performance reviews can help employers:

• Clarify job expectations;
• Recognize strong performance and contributions;
• Identify performance concerns early;
• Discuss professional development;
• Set measurable goals;
• Identify training or support needs;
• Improve communication between employees and managers; and
• Create an accurate record of performance over time.

Performance reviews should not be treated as a substitute for regular management. Significant concerns should be addressed when they arise rather than saved for an annual or other review.

Which Employees Should Receive Performance Reviews?

There is no general Alberta employment law requirement that every employee receive a formal annual performance review.

However, employers that use performance reviews should generally apply their review process consistently and fairly.

Reviews can be valuable for:

• New employees;
• Probationary employees;
• Long-service employees;
• Managers and supervisors;
• High-performing employees;
• Employees working toward promotion or increased responsibility; and
• Employees who have experienced performance difficulties.

An employer’s employment agreements, policies, collective agreements or internal practices may also create specific expectations about how and when reviews will occur.

Should Probationary Employees Receive Performance Reviews?

Employers should provide probationary employees with meaningful feedback during the probationary period.

Waiting until the final days of probation to tell an employee that their performance is unacceptable can create unnecessary problems.

During probation, employers should consider:

• Whether the employee understands the role;
• Whether expectations have been clearly communicated;
• Whether adequate training has been provided;
• Whether any concerns have been discussed;
• Whether improvement has occurred after feedback; and
• Whether disability or another protected ground may be affecting performance.

A midpoint or interim review can be particularly useful where an employer intends to make a decision about continued employment at the end of probation.

How Often Should Performance Reviews Be Done?

There is no legally required frequency for performance reviews in most non-unionized Alberta workplaces.

For many employers, a formal review once or twice per year is a practical starting point.

However, the appropriate frequency depends on factors such as:

• The size and structure of the organization;
• The employee’s position;
• The complexity of the work;
• How quickly performance can change;
• Whether the employee is new to the role;
• Whether the employee manages others; and
• Whether there are active performance concerns.

Annual reviews can work well when they are supported by regular conversations throughout the year.

Do Not Rely on the Annual Review Alone

Employees should not learn about a serious performance concern for the first time during an annual review.

Managers should provide feedback when issues arise.

A more effective approach may include:

• Regular informal feedback as work is completed;
• Monthly or quarterly check-ins to discuss goals and workload;
• Formal annual or semi-annual reviews to assess broader performance and development; and
• More frequent follow-up where an employee is struggling.

This approach makes the formal review more useful and reduces the likelihood of unexpected or disputed feedback.

What Rights Do Employees Have During Performance Reviews?

Employers generally have the right to evaluate employee performance and establish reasonable workplace standards.

However, the performance review process must comply with applicable employment [link to Employment Standards Compliance page] and human rights [link to Workplace Human Rights & Accommodation page] laws.

What Should an Employee Performance Review Cover?

A useful review should be tailored to the employee’s actual role.

Avoid using the same generic evaluation criteria for every employee unless those criteria genuinely apply to each position.

A performance review may address the following areas.

1. Job Responsibilities and Results

Review the employee’s core responsibilities and whether they are being performed at the expected level.

2. Progress Against Previous Goals

Review the goals established during the previous review period.

Goals should remain relevant to the employee’s role and reasonably within the employee’s control.

3. Strengths and Positive Contributions

Performance reviews should not focus only on deficiencies. Identify where the employee is performing well.

Specific positive feedback helps employees understand which behaviours and results the employer values.

4. Areas for Improvement

Where performance needs to improve, explain the concern clearly.

Avoid statements such as:

“You need to be more professional.”

Instead, identify the particular behaviour and the expected change.

For example:

“Three client inquiries during the past quarter were not responded to within our two-business-day service standard. Going forward, client inquiries should be acknowledged within that timeframe unless another arrangement has been approved.”

Specific feedback is more useful to the employee and easier for the employer to assess later.

5. Competencies and Workplace Behaviours

Employers should define the applicable competencies and what they mean in practice.

Terms such as “leadership,” “attitude” or “professionalism” can become subjective unless the employer connects them to observable workplace behaviour.

6. Training and Development

Ask what the employee needs to perform successfully and continue developing.

Performance reviews can be an important retention tool when employees understand how they can develop within the organization.

7. Goals for the Next Review Period

End the review by establishing clear priorities.

Effective goals should generally be:

• Specific;
• Relevant to the role;
• Realistic;
• Measurable where possible; and
• Connected to a reasonable timeframe.

Avoid giving employees a long list of competing priorities without identifying which objectives matter most.

What Should Employers Document in a Performance Review?

A written record should accurately reflect the discussion.

The review should generally document:

• The review period;
• The employee’s role;
• The performance criteria considered;
• Major accomplishments;
• Goals achieved;
• Areas requiring improvement;
• Specific examples of significant concerns;
• Feedback previously provided;
• Training or support offered;
• The employee’s response to significant concerns;
• Accommodation considerations where relevant;
• Goals for the next review period;
• Development priorities; and
• Any follow-up commitments made by the employer or employee.

Documentation should be specific, factual and balanced.

Avoid Vague or Inflated Ratings

One common problem occurs when written performance reviews do not reflect what managers actually think.

For example, an employee may receive years of ratings such as “meets expectations” or “exceeds expectations”, even though management has significant concerns.

If the employer later attempts to rely on a history of poor performance, those previous reviews may undermine its position.

Managers should not artificially lower ratings to create documentation either. The written review should accurately reflect the employee’s performance as understood at the time.

Should Compensation Be Discussed During a Performance Review?

It can be, but employers should decide whether combining the two discussions supports their objectives. Performance and compensation are related, but they are not always the same issue.

If every performance review immediately becomes a compensation negotiation, employees and managers may focus less on development and meaningful feedback.

Some employers therefore separate the performance discussion from the compensation decision, even if the conversations occur close together.

Whatever approach is used, it should be communicated clearly and applied consistently.

How Should Employers Handle Poor Performance During a Review?

If a review identifies meaningful performance concerns, the employer should explain:

• What the concern is;
• What standard applies;
• What improvement is expected;
• What support will be provided;
• When performance will be reassessed; and
• What may happen if sufficient improvement does not occur.

See our pages on Employee Performance [link to page] and Performance Improvement Plans [link to page] for more information. 

Common Performance Review Mistakes Employers Should Avoid

Performance reviews lose value when they become a routine administrative exercise.

Common mistakes include:

• Conducting reviews inconsistently;
• Cancelling reviews year after year;
• Giving vague or generic feedback;
• Surprising an employee with concerns that were never previously discussed;
• Rating everyone highly to avoid difficult conversations;
• Using personality-based rather than job-related criteria;
• Failing to provide examples;
• Comparing employees unfairly;
• Ignoring accomplishments and focusing only on deficiencies;
• Setting goals without following up;
• Failing to document the employee’s response;
• Ignoring accommodation issues;
• Allowing bias to influence the review; and
• Using the review primarily to create a paper trail for a termination decision already made.

A performance review should accurately reflect the employee’s work and help both sides understand what should happen next.

What to Do Next: Build a Better Performance Review Process

Alberta employers should consider the following steps:

• Choose a consistent review cycle. Annual or semi-annual formal reviews supported by regular check-ins work well for many workplaces.
• Define what will be assessed. Use criteria that are relevant to the employee’s actual position.
• Train managers. Make sure reviewers know how to give specific, objective and useful feedback.
• Address problems when they arise. Do not save serious concerns for the annual review.
• Use real examples. Support important feedback with facts and observable conduct.
• Document accurately. Make sure the written review reflects the employer’s genuine assessment.
• Listen to the employee. Give the employee an opportunity to explain concerns and provide feedback.
• Consider accommodation. Determine whether disability or another protected ground may be affecting performance.
• Set priorities for the next period. Establish clear goals and identify the support required.
• Follow up. A review has little value if goals and concerns are not revisited.
• Get legal advice when concerns become serious. This is particularly important where performance issues may lead to formal discipline or termination.

Getz Collins and Associates: Helping Alberta Employers Build Effective Performance Review Processes

Performance reviews should do more than complete an annual HR requirement. When they are done well, they can strengthen communication, develop employees, address performance problems earlier and provide employers with reliable information for future workplace decisions.

The employment lawyers at Getz Collins and Associates advise Alberta employers on practical and legally sound performance management practices.

We can assist employers with:

• Developing performance review processes;
• Reviewing performance evaluation forms;
• Establishing performance criteria and competencies;
• Drafting employee feedback and performance documentation;
• Addressing difficult performance reviews;
• Performance Improvement Plans;
• Progressive discipline;
• Disability and workplace accommodation issues;
• Assessing performance concerns before termination; and
• Employment policies and procedures.

Getting advice before a performance concern escalates can help employers manage employees more effectively and reduce the risk of wrongful dismissal or human rights claims.

From our Calgary office, Getz Collins and Associates advises employers throughout Alberta, including Calgary, Airdrie, Cochrane, Okotoks, Drumheller, Chestermere and surrounding communities.

Call 587-391-5600 or contact us online to schedule a consultation with an employment lawyer.