How Business Owners can Avoid the Stress of Giving Performance Reviews
Posted on February 28, 2025 by Andrew Lamppa, One of Thousands of Business Coaches on Noomii.
Clear expectations and agreed-upon performance standards making performances reviews more productive and less stressful.
As a small business owner, you want employees who are engaged, productive, and taking ownership of their roles. Yet, traditional performance reviews often create unnecessary tension, leading to avoidance, unresolved issues, and even turnover. Instead of viewing performance conversations as a necessary evil, what if you could make them a natural, ongoing process that drives real results?
That’s where Employee Success Agreements (ESAs) come in. ESAs shift performance management from periodic, uncomfortable evaluations to continuous clarity, accountability, and growth—creating a workplace where both employees and owners win.
Why Traditional Performance Reviews Fail
Most performance reviews feel like a gotcha moment—anxiety-inducing for employees and frustrating for owners. They are often:
- Infrequent and disconnected from day-to-day work.
- Subjective and reactive, leading to defensiveness rather than growth.
- More focused on judgment than collaboration, making employees feel evaluated rather than supported.
This cycle leaves both you and your employees dreading reviews rather than using them as opportunities to improve performance, increase engagement, and drive business results.
The Key to High Performance: Clarity
At the root of most performance challenges is a lack of clarity. Employees can’t hit a target they don’t see, yet many small businesses operate with vague job descriptions and shifting expectations.
There are three levels of clear responsibility:
Level 1: No Clear Expectations
- Responsibilities are communicated verbally or assumed.
- Employees don’t fully understand what success looks like.
- Owners feel frustrated by inconsistent performance but struggle to articulate expectations.
Level 2: Documented Responsibilities
- Job descriptions exist, but they lack measurable performance expectations.
- Reviews become subjective because there’s no agreed-upon standard of success.
- Employees are still unsure how they’re being measured.
Level 3: Employee Success Agreements (ESAs)
- Clear, documented performance expectations exist for each role.
- Employees understand exactly how their performance is measured and how it contributes to the business.
- Reviews become collaborative discussions focused on continuous improvement, not surprises or judgments.
The Power of Employee Success Agreements
An ESA is a two-way agreement between the business and the employee that outlines:
✅ Key Responsibilities: The specific activities they own.
✅ Performance Metrics (KPIs): How success is measured.
✅ Clear Performance Expectations (CPEs): For activities that can’t be measured numerically.
✅ Critical Result: The #1 outcome they are responsible for.
Instead of “Did they do their job well?”, you now ask:
- Did they meet or exceed the agreed-upon expectations?
- If not, what support do they need to improve?
- Are they positioned for success, or do we need to make adjustments?
When employees know exactly what is expected of them, they take greater ownership of their work, seek feedback proactively, and align their efforts with company goals.
Turning Reviews into Growth Conversations
With ESAs in place, performance discussions shift from one-sided critiques to coaching conversations:
- Review the ESA together. Are they meeting expectations? If not, why?
- Acknowledge strengths and progress. What’s working well?
- Identify areas for improvement. What adjustments or support would help?
- Discuss future goals. How can they continue growing in their role?
Because expectations are clear from day one, employees aren’t surprised during reviews. In fact, many will initiate these conversations themselves, seeking feedback and clarity before issues arise.
Why ESAs Work for Small Businesses
ESAs create a win-win for both employees and owners:
✔ Less time managing performance issues, more time leading.
✔ Employees feel empowered and accountable, reducing micromanagement.
✔ High performers stay engaged, while low performers self-select out.
✔ Fewer surprises and uncomfortable conversations.
✔ Better alignment between company goals and daily execution.
By eliminating uncertainty, ESAs increase engagement, improve retention, and drive productivity— ensuring that your business runs smoothly and grows sustainably.
Build a Business Where Employees Care
If you want employees who take ownership of their work, you must first clarify what ownership looks like.
ESAs give employees the roadmap to success, helping them connect their role to the bigger picture. When people understand their impact and have clear targets, they show up differently—not just as workers, but as invested contributors to your company’s success.
If you’re ready to shift from frustrating performance reviews to a culture of clarity, accountability, and engagement, start implementing ESAs today. Your business—and your team—will thank you.
