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.
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