How to Write a Performance Review (with Free Template)

by Team Tradify, November 15, 2024

There's a lot that goes into running a successful trade business, including learning how to manage an expanding team. Part of managing a great trades team is making sure each of your employees feels supported. Conducting regular performance reviews encourages motivation, improves work quality, and helps you manage your team effectively.

Here’s a free performance review template to help you get started.

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Why performance reviews matter in trade businesses
Using a performance review template
Key components of a performance review
How to measure performance
Setting goals and expectations
Providing constructive feedback
Encouraging career development
The benefits of regular reviews
Tools for trade business owners

1. Why performance reviews matter in trade businesses

Performance reviews provide business owners and managers with a structured time and place to assess an employee’s work and note areas for growth. In trades, where performance directly affects customer satisfaction and team productivity, these reviews benefit the whole team. For the employee, they help set goals and create clear pathways for career development.

Learn more about addressing challenges and motivating your team in our blogs:

2. Using a performance review template

A common issue for managers (new and old) is where to start when writing a performance review. There are common areas to cover, such as your employee's work ethics and their working standards.

A template can streamline the review process, providing a clear framework to assess skills, accomplishments, and areas for improvement. Tradify offers a free, downloadable Performance Review Template, designed specifically for trade businesses to help you stay on track.

3. Key components of a performance review

Each performance review should cover essential aspects of an employee’s role, as well as their contributions to the business:

Quality of service: How well does the employee manage resources, including respecting work hours, equipment, and client interactions? Look at both their technical skills and their ability to use time and tools effectively. Are they efficient? Do they deliver quality service? Do they arrive on time?
Knowledge, quality, and speed of service: Make notes of the employee’s technical expertise and the quality of work they deliver. Highlight any areas where they're excelling, and discuss where they might benefit from further training.
Client satisfaction and communication skills: Check out your customer feedback, and address any positive comments or complaints. Address any positive you've noticed in their customer interactions and suggest ways they could improve.
Work ethic: It’s not just about individual skills; teamwork is essential in trade work. Review how well the employee works with others and contributes to a positive work environment. If you’ve noticed any issues with punctuality, attitude, or reliability, this is the time to discuss it.

4. How to measure performance

Nothing in an employee's performance review should come as a complete surprise. To make sure you're providing a fair snapshot of their work, keep an ongoing log of key moments, such as any customer feedback, quick task completions, or high-quality work. Noting both achievements and areas for improvement as they come up will mean you're able to give a balanced review when the time comes. Tracking solid details, such as how long they take to complete a job or customer reviews adds clear, objective insights to the performance review.

5. Setting goals and expectations

One of the main purposes of a performance review is to help set goals for the future. Clear, measurable goals let the employee know exactly what is expected of them moving forward, and what they're working towards. For each area of improvement, work with the employee to set realistic goals. This can include additional training, speed improvements, or ways to interact with clients. For them, setting goals can let them know exactly what is needed from them to further their career, win a promotion and more responsibility, or a raise.

6. Providing constructive feedback

Constructive feedback is critical to performance reviews. Start by letting the employee know you've noted their strengths, then move to areas that need improvement. Be specific in your expectations to avoid misunderstandings and ensure the employee leaves with a clear understanding of how they can grow. This helps to prevent any hurt feelings or frustrations.

Handling a difficult conversation with an employee calls for tact, empathy, and focus. Avoid making personal judgments; instead, concentrate on behaviours and job performance. Remember, clarity is kindness in these situations—offer specific, measurable feedback and be transparent about your expectations for improvement.

Set clear expectations: Start with a straightforward explanation of what needs to improve, using specific examples to illustrate.
Outline potential consequences: Communicate that if issues persist, formal disciplinary actions may follow.
Be direct but compassionate: Offer feedback while giving the employee space to share their perspective.
Show empathy: Recognise the challenge of the discussion and express sincere concern for their progress.

7. Encouraging career development

Performance reviews are an opportunity to discuss career development. Talk about their goals within the company, potential paths and any additional skills or training they may need. Creating a development plan can help employees feel valued and motivated to contribute more to the business – rather than looking elsewhere.

8. The benefits of regular reviews

Life gets busy, and it's not always possible to meet up with your team for conversations about work, their goals and where they're struggling. Conducting regular performance reviews gives you the chance to meet up with the team and honestly check in with how they're doing. They're a professional, structured space to address small issues before they become significant problems, where both sides can be heard and celebrate where they're succeeding.

For more tips on retaining top talent, check out our blog on How to Keep Your Staff.

9. Tools for trade business owners

Performance reviews are just one part of managing a trade business. A well-organised team is a happy team — when employees know where they need to be and are paid accurately, they’re more motivated and engaged.

Performance reviews play a key role in creating a motivated, productive workforce. By following this guide and using our free template, you’ll be well on your way to creating a high-performing team and a thriving business.

Ready to run a better business?

As the no.1 rated job management system, Tradify is used by thousands of tradespeople to build better lives and businesses. It gives you all the features needed to manage and grow a successful business, including: