2025 UK Employment Law Changes

Performance Management 2 min read

How should employers conduct employee appraisals?

Reviewed by Rebecca Hughes, Senior HR Consultant, CIPD Level 7 Last updated: 12 March 2026
Expert Answer

Employee appraisals are a cornerstone of good performance management. While there's no legal requirement to hold them, failing to have a structured review process makes it significantly harder to manage underperformance, justify pay decisions, or defend tribunal claims.

Structuring the Appraisal

  • Schedule in advance — give the employee at least 2 weeks' notice so they can prepare
  • Use a consistent template — the same framework for all employees ensures fairness
  • Review against objectives — assess performance against the goals set at the last review or at onboarding
  • Gather evidence — use specific examples, data, and feedback from colleagues rather than general impressions
  • Make it two-way — ask the employee for their self-assessment and listen to their perspective

What to Cover

  • Achievement against previous objectives
  • Strengths and areas for development
  • Training and development needs
  • Career aspirations and progression
  • New objectives for the next period
  • Any concerns or support needed

Common Mistakes

  • Recency bias — only focusing on the last few weeks rather than the entire review period
  • Avoiding difficult conversations — rating everyone as "good" to avoid conflict undermines the entire process
  • No follow-up — appraisals without action plans are pointless
  • Inconsistency — different managers applying different standards opens you up to discrimination claims

Documentation

Always document appraisal outcomes. Written records are essential if you later need to address underperformance or justify a PIP. Both parties should sign the appraisal summary.

Our performance management service provides appraisal frameworks, manager training, and templates. Get in touch.

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