5 Areas of Improvement for a Meaningful Performance Review

No matter how skilled an employee is, there’s always room to grow. But clunky or backward-looking performance reviews can make it hard for managers to deliver meaningful feedback. 

They fall back on outdated review questions, struggle to communicate constructive criticism, or even neglect to give feedback at all.

The good news is, with the right examples and performance review phrases, you can build a feedback culture focused on continuous improvement. Use these core areas of development to get started.

Why areas of improvement are critical to employee performance reviews

According to our latest Hiring Challenges Report, one-third of companies struggle to identify training needs and skill gaps in their teams. But pinpointing areas of improvement can help everyone understand how they can do better, even top performers.

Here’s how business psychologist Art Markman explains it for Fast Company:

“[G]etting an A+ on your yearly evaluation doesn’t mean that you did everything perfectly. Instead, you should identify an area for improvement and then spend the year making those improvements. The A+ comes when you successfully address a limitation identified in the previous year.” 

According to research from Gallup, focused feedback can quadruple employee engagement scores. But it isn’t just about celebrating successes or forcing some arbitrary stack ranking system. It’s about identifying real areas for growth that can help lift up the entire team.

5 examples of areas of improvement

Improvement doesn’t need to have a negative connotation. At the end of the day, it’s about guiding employee development and helping each individual reach their full potential.

But a lack of clear goals and expectations can keep teams stuck in inertia. For real traction moving forward, here are 5 common areas of improvement you can plug right into your review process.

1. Communication skills

We’ve all got our own communication style. But the right interpersonal skills can help increase collaboration, prevent misunderstandings, and contribute to a work environment where everyone feels seen and heard.

Sample performance review phrases:

• Being more concise in emails could help with clarity.
• It would be great if you could speak up and share your insights more in team meetings.
• Improving communication could be as simple as responding to emails and messages in 2 days instead of 5.

2. Problem-solving

Problem-solving skills help employees analyze situations, brainstorm creative solutions and sharpen their decision-making abilities, which can also help prepare them for a future leadership role.

Sample performance review phrases:

• Focus on finding solutions rather than getting caught up in obstacles.
• Take the lead in problem-solving instead of waiting for direction.
• Work on staying calm during high-stress situations.

3. Teamwork

For most roles, collaboration is a core competency. It’s about self-awareness, maintaining a positive attitude, and approaching project management with a ‘we got this’ mentality. 💪🏼

Sample performance review phrases:

• Try to be more open to constructive feedback from your colleagues and consider their suggestions when it makes sense.
• Join in more actively in team-building activities to better connect with your coworkers.
• Work on your conflict resolution skills by addressing tough conversations with coworkers directly rather than avoiding them.

4. Adaptability

The world of work is always changing. Adaptability helps team members stay flexible, learn new skills, and contribute to a resilient workforce.

Sample performance review phrases:

• Proactively seek out development opportunities to grow in new areas.
• Practice with new processes to embrace new workflows with ease.
• Work on flexibility rather than strictly adhering to initial plans as priorities shift.

5. Leadership skills

Even in non-leadership roles, budding leaders inspire coworkers to move projects forward and continue contributing to the team's success.

Sample performance review phrases:

• Practice delegating tasks rather than handling everything alone.
• Take more ownership of tasks rather than seeking direction for each step.
• Trust your gut and make clear decisions rather than hesitating to take initiative.

Areas of improvement performance review examples

For effective performance reviews, it’s important to combine positive feedback with the employee’s areas of improvement. The two complement each other and, barring any formal performance improvement plans, neither is necessarily “good” or “bad”.

Here are some sample phrases to help you combine positive feedback with areas of improvement in a way that feels genuine (and not like some yucky feedback sandwich):

5 best practices for managers and team leaders

It’s not enough to know which areas of improvement to include or how to write them. Managers and team leaders also need to help direct reports create an action plan for consistent progress towards career development.

1. Start early

It may sound like a no-brainer, but pre-work and scheduling is the most crucial step of an annual review.

“I’ve had multiple clients find themselves in the awkward situation where they’re supposed to have an annual review but haven’t had one, and they’re also not sure when it will be scheduled,” time management skills coach Elizabeth Grace Saunders explains in an interview with Fast Company.

The problem with performance review procrastination is that it keeps employees in limbo, heightening uncertainty and anxiety.

Set a date for each performance evaluation and schedule review meetings in advance so team members can enter the conversation with confidence.

2. Let employees lead the conversation

Make space for all parties to discuss their experience. Aim for a balance between active listening, self-led development and targeted coaching.

“The performance review is a two-way conversation. It's not just you talking to your employee, your employee needs to respond and react to what you have said,” founder of Executive Impressions Kara Ronin explains. “Part of your job as a manager and a leader is to help them get there—to help develop them into being the professional they want to be.”

Ultimately, employees can be encouraged to lead the conversation about where they can improve, but it’s the manager's job to guide them along their professional growth path.

3. Challenge high-performers with extra projects

Struggling to define areas of improvement for chronic high-performers? Research shows there is a snowball effect on turnover when high performers leave the workplace, so it’s important to keep them engaged. 

One solution is to expand their skill set with a side project. Research by Stanford’s Justin Berg suggests that job satisfaction is highest when employees experience dual growth in both personal skills and job description.

“As a high performer in a tech consulting company…I was given the opportunity to do side projects which are not part of my official role like: defining and leading AI strategy for the company,” one Reddit user shared. “I was allowed to introduce new services for the company, which we now provide and I am continuously trying to improve...”

Leveraging a top performer’s untapped skills can be a great way to reinforce their value while improving employee retention where it matters most.

4. Show employees you have their backs

While managers are certainly leaders and taskmasters, they’re also an employee’s in-office support system.

“If you have an employee, your job is to be 100% committed to their success and to do everything in your power to help them succeed,” employee engagement expert Joanne Graf tells Fast Company. “This view is incredibly powerful and meaningful to the employee—if they know you are on their side, want them to win, and are available to ensure that happens, they will, more often than not, show up powerfully.”

Want to make your presence count? Focus on questions that show you’re there to support your employee, like: What are the areas that you struggle with, and where would you like some support? What can I do for you to help you do your job better? 

5. Follow up

If you really want to help your employees succeed, don’t save your comments for the annual performance appraisal. Create an employee feedback system that leads to continuous improvement, including consistent weekly check-ins and an employee check-in template packed with questions team members want you to ask.

“There is no silver bullet for building the perfect feedback culture,” Melissa Miller, co-founder and COO of manager development platform The Mintable, tells Forbes. “But you can realign your tools and processes to create a better feedback loop and hence build a habit. A successful feedback process must be a consistent, integral part of your day-to-day operations and focus on establishing cues, routines and rewards.”

The easiest way to tap in is to join the 65% of companies using employee one-on-ones to support team members. By making performance feedback a habit instead of a once-a-year occurrence, you can stay on top of team milestones and professional development goals in real-time.

Measurable work performance starts now

Everyone can grow. 🌷

It's up to leaders like you to help team members understand why, where, and how to do it. Whether it’s improving overall performance or helping an employee hone their active listening skills, effective feedback drives employee development.

Once-a-year performance management isn’t enough. With easy employee goal-setting features, prebuilt templates, and done-for-you conversation starters, Perform keeps teams on track. Sign up now and get instant access for up to 10 employees, totally free.