Before commencing the recruitment process it is important to establish structures and procedures for reviewing staff performance. It is a question that may crop up at interview and it is best to highlight the company's review policy when new staff are introduced to the company.
The review process is normally a yearly meeting with the team manager and should encompass a frank discussion between the employee and their line manager. This should include both positives and negatives and people should feel that good work is recognized.
Where their standards fall short, they should be encouraged to play a cooperative role in identifying their own weaknesses and in devising solutions. This can be encouraged by a simple self-assessment form to be completed prior to each review.
It is vital that you make sure these policies are applied fairly and consistently to all staff. Employees should be encouraged to anticipate and prepare for review meetings and appraisals. Every part of the process should be documented. For any review to be effective, it must be based on a clear set of performance standards and goals that have been effectively communicated to staff. Encourage employees to rate themselves against these expectations, before their manager completes their own review.
Reviews are necessary to monitor staff progress, allow concerns to be aired and to deal with any tensions that might be bubbling under the surface.