Many small business owners do not think it is important to do a yearly employee review. Or, they are so intimidated by the process that they just skip it all together. This is a big mistake. Yearly reviews are very important. Whether it be an employee who is doing excellent and deserving of a promotion or raise, or an employee who is under performing and needs disciplinary action, you need to know what is going on in your company. The Yearly Review is a way to make that happen.