Employees depend on supervisor feedback to understand their strengths and weaknesses and to identify performance goals. An annual performance review is an effective method for identifying areas where employees excel, as well as those that need improvement. While few supervisors and managers relish the idea of writing an annual performance review, devoting the time and focus to writing an effective one can improve job performance, support productive working relationships among employees and their supervisors and increase overall job satisfaction.

Preparation
Writing an effective performance review requires preparation. Only in rare circumstances and in certain work environments can a supervisor write a review that covers all the necessary points about job performance without extensive preparation. Preparation includes reviewing the employee's personnel file, evaluating work logs and production records, observing the employee's work habits and analyzing past performance reviews.

Leadership Training
Reviewing your notes from leadership training on the company's performance management system can improve your ability to write an effective performance review. Refreshing your skills in rating employees' performance is essential, particularly when a year has passed since the previous review. Additionally, your company's performance management methods may have been modified in the year since you conducted the employee's last review.

Draft Comments
The best process to use for writing a performance review is to construct a draft version, refine your comments and finalize the document before you conduct the actual performance review meeting. An annual performance review document becomes an official part of the employee's personnel file that can affect salary, grade and employment status; it is critical that you write a review that is meaningful and accurate.

Prepare a first draft based on a preliminary review of the employee's personnel file and job performance. Conduct a more detailed examination of the previous year's performance review and analyze any changes -- upward or downward -- in the employee's performance for the current evaluation period. Finalize the review to ensure that you have evaluated all areas of job performance. Prepare the final document and proofread it for errors.

Manager Review
Depending on your company's performance management process, you may have an opportunity to review the employee's performance review document with your own manager. This can be particularly beneficial if you are new to a supervisory role.

Considerations
Any performance review, annual or otherwise, is helpful in measuring job performance. Effective reviews contain objective and unbiased statements and provide employees with constructive feedback and recognition. In many organizations, an annual performance review determines the employee's compensation level, whether he is suitable for promotional opportunities or even if the employment relationship should continue. An effective performance review deserves attention to detail and fair, justifiable assessments.