How to Run an End-of-Year Review Without Losing Your Humanity (or Your Team’s Trust)
End-of-year reviews are coming. And if the thought of them makes you cringe just a little…you’re not alone.
Most leaders I talk to fall into one of three camps:
“I know I should do reviews, but I don’t even know where to start.”
“We do them…but they feel awkward, rushed, or completely disconnected from real goals.”
“We’ve got high performers who deserve a raise, but no budget to give them one. Now what?”
“I’ve got a few people that aren’t performing well and I don’t know how to address it.”
Sound familiar?
Here’s the truth: When done well, EOY reviews can realign your team, boost retention, and refocus your culture. But if you phone it in…or skip them altogether? You risk disengagement, unmet expectations, and lingering resentment.
So let’s fix that.
First, What’s the Actual Purpose of an EOY Review?
Spoiler: it’s not just to rate someone on a 1-to-5 scale.
An effective end-of-year review should:
Reflect on the past year’s performance
Recognize wins and growth
Address opportunities for improvement
Realign expectations and goals for the new year
Reaffirm (or redefine) your working relationship
This is a two-way conversation, not a courtroom verdict. And when you treat it that way, employees walk away motivated, not defeated.
What to Ask in an End-of-Year Review
Here are 5 high-impact, human-first questions I recommend to every leader:
What are you most proud of this year?
What challenges impacted your performance or energy?
Where do you want to grow next year and how can I support that?
What feedback do you have for me as your leader?
What’s one thing we could change as a team or company to improve your experience here?
Pro Tip: Send the questions in advance so your employee can come prepared. This isn’t a pop quiz. It’s a partnership.
What the Employee Owns in the Review
Performance reviews are not just for management to download feedback. Employees have skin in the game too.
They’re responsible for:
Reflecting honestly on their own performance
Showing up prepared with goals and questions
Being open to feedback, both positive and constructive
Taking ownership of their growth
If you want a growth-minded team, model that mindset and expect it in return.
When You Can’t Afford a Raise (But Have a Rockstar Employee)
Whew. This one hits hard.
You've got a high-performing, loyal team member who deserves a raise. But your Q4 books are tight, and your 2025 budget is still up in the air.
Here’s how to handle it with honesty and respect:
Name the excellence. Be specific about what they’ve done well. Don’t hold back praise just because you can’t pair it with dollars.
Be transparent. If a raise isn’t possible right now, say so and share what would need to change for that to happen. (Revenue milestone? Funding? Headcount growth?)
Offer alternatives. Think: title changes, professional development, extra PTO, flexible scheduling, project leadership, or a 90-day re-review.
Put it in writing. Don’t just say “maybe next year.” Document the goal and timeline so they know you’re serious and can hold you to it.
This is how you retain top talent without making empty promises.
How to Handle a Not-So-Great Review (Without Crushing Morale)
Now let’s flip it.
What if the review isn’t glowing? Maybe performance dipped. Maybe expectations weren’t met. Maybe they do weird things at work.
Don’t dodge it.
Here’s how to handle tough reviews with empathy and accountability:
Lead with humanity. Ask what’s been going on—personally or professionally—that may have impacted their performance. You might uncover something important.
Be specific, not vague. "You need to improve" doesn’t help. "We’ve missed three deadlines this quarter, which impacted client trust" does.
Offer a clear path forward. Set a 30-60-90 day plan, with milestones and check-ins. This turns feedback into a growth roadmap, not a pink slip.
Document, document, document. Not because you’re trying to trap anyone, but because clarity protects everyone.
And remember: underperformance doesn’t always mean someone’s a bad fit. Sometimes they just need support, re-direction, or a different seat on the bus.
EOY Reviews Aren’t a Chore, They’re a Leadership Moment
When you show up prepared, honest, and compassionate, performance reviews become more than just “HR stuff.”
They become:
Culture-builders
Retention tools
Alignment checkpoints
Leadership development labs
Need help designing your EOY review process?
If you’re feeling overwhelmed, or unsure how to approach them?
That’s why Sipley the Best exists.
We help small businesses build review systems that are simple, strategic, and rooted in real leadership, not corporate fluff.
📅 Book a strategy call with us and let’s make this your best Q4 yet.