Appreciation is key to retention and retention is key to your bottom line. Set the date well in advance. Typically, reviews are done during the first quarter of the year, but do yours when it best suits you. Some choose to review on each employee's anniversary with the company, which is less taxing on your schedule than doing them all at once. Also, you don't have to limit the exercise to once a year.
Some experts prefer twice a year or even quarterly.
Frequent interaction with your staff is healthy. Prepare for the day. If you plan to meet outside your office, make sure the space is reserved and private. Have your telephone covered and turn your pager off. Get yourself ready too.