Employee reviews or performance appraisals are important components of labor management.
They are not just the means to rate employees' work record, but can also improve the employer-employee relationship and productivity; all of which are important to the bottom line.
Employee reviews can also be time-consuming and stressful, as any employer is likely to have a small percentage of employees that will receive mediocre or poor reviews.
Excellent preparation for each employee performance appraisal is the key.
That starts with a detailed review process that could consist of the following elements:

• Preparation: job descriptions, previous year's review, employee self-evaluation and performance notes of the year.
  
• Schedule: new employees, after first six months, all other employees once a year.
  
• Legal: various laws apply to the review process, such as discrimination-based evaluations and an opportunity for employees to appeal what they may consider unfair reviews.
  
• Form: use a professionally created review form for a comprehensive and legal evaluation.
  
• Communication: inform employees two weeks in advance of the review.
  

Knowing how to write an employee review is another important part of employers' education and preparation.
That process starts as soon as a new employee is hired.

• Explain in detail each job description, responsibilities and how he or she will be evaluated.
  
• Don't rely on your memory.
  Take notes regularly about job performance.
  Help employees to address any deficiencies with training or other aids well in advance of the review.
  Also take notes of your discussion with employees who may require remedial help, and make it clear that they are committed to fulfill that training by a specific date.
  
• No cramming allowed.
  Begin to write an employee review at least 30 days in advance.
  
• Require employees to write self-appraisals approximately 30 days before the formal review meeting.
  
• Be specific.
  Whether a review is above average or below average, provide employees with positive input about how they can improve their performance during the next 12 months.
  

For many employers, especially small-business owners, the solution to saving time and reducing the stress of employee evaluations is a comprehensive, professionally created employee handbook.
The best of them have been authored by human resources experts and include all the details of every labor management process and the necessary forms.