At its core, performance management should help you set clear expectations, check in regularly, spot issues early, support improvement, and recognise good work. That is it. It is not about complex forms, scoring systems, or annual appraisals. Instead, it is about regular conversations and clear structure that support both your people and your business.
Step 1: Set Clear Job Roles and Goals
Performance issues often start long before performance drops. In many cases, the real problem is unclear expectations. For that reason, every employee should have a simple job description, clear responsibilities, three to five measurable goals for the next three to six months, and a shared understanding of what good performance looks like. Think of this as giving people a map before the journey starts. Without clarity, even capable employees can struggle.
Step 2: Hold Regular 1:1 Check-Ins
Many small businesses rely on annual appraisals. Unfortunately, these often get delayed until something goes wrong. Instead, short monthly or bi-monthly check-ins work far better. During these conversations, focus on what is going well, any challenges, progress against goals, support needed, and priorities for the weeks ahead. As a result, employees feel supported and performance issues are addressed before they escalate.
Step 3: Give Feedback in a Clear and Consistent Way
Feedback should not only happen when there is a problem. In fact, regular feedback builds trust and confidence. To keep feedback constructive, be specific, give feedback close to the event, balance positive and developmental points, and focus on behaviours and outcomes rather than personality. This approach helps create fairness and respect, which are essential in small teams.
Step 4: Keep Simple Records of Key Conversations
Just like contracts and policies, documentation protects your business. That said, it does not need to be complicated. A short note is usually enough. Record the date of the meeting, the key points discussed, any actions agreed, and timescales. As a result, everyone is clear on what was agreed, and you have evidence if issues need to be reviewed later.
Step 5: Address Performance Issues Early
In a small team, unresolved issues can quickly affect morale. Therefore, it is important to act early. If someone is not meeting expectations, explain the gap clearly, ask what might be affecting performance, agree practical improvements, set review dates, and offer training or support. This is not a disciplinary process. Instead, it is an opportunity to put things right before problems grow.
Step 6: Recognise and Reward Good Performance
Performance management is not only about fixing issues. It should also motivate your strongest performers. Recognition does not have to be financial. For example, it could include public thanks, extra responsibility, development opportunities, flexible working, or a simple thank you. Over time, this builds a positive culture and supports retention.
A Simple Example in Practice
Imagine you hire a new Office Manager. After three months, deadlines start slipping, emails go unanswered, and frustration grows across the team. Without a clear process, it is easy to jump straight to blame. However, with a simple framework in place, you can revisit the job description, review agreed goals, raise concerns in a one-to-one meeting, explore possible causes such as workload or unclear priorities, agree two or three clear actions, and review progress within a short timeframe. In many cases, clarity and support resolve the issue quickly.
What You Should Have in Place
To manage performance effectively, make sure you have clear job descriptions, measurable goals, regular check-ins, simple records of discussions, a fair improvement process, supporting policies such as Disciplinary and Grievance, and equal treatment for all employees. Consistency matters far more than complexity.
Final Thoughts
A good performance management process for a small team should be clear, simple, regular, fair, and supportive. When done well, it helps your people grow, strengthens your culture, and protects your business. If you need support putting this in place, JT HR Consultancy can help you build a practical, tailored performance management process that works for your business without unnecessary complexity.
