A performance appraisal is a one to one review between a manager and an employee that evaluates performance, recognises achievements and identifies areas for development.
What is performance appraisal?
A performance appraisal — often called a performance review — is a structured conversation where a manager and employee discuss progress, strengths, goals and opportunities for improvement.
Appraisals help employees understand how their work contributes to the organisation and give managers a chance to recognise achievements, address challenges and set expectations for the future. When done well, they support fair decision‑making around pay, progression and development, and help build a culture of continuous improvement.
Things to know
- Appraisals are usually held annually or biannually
- They provide structured feedback and recognition
- They help identify development needs and future goals
- They support fair, consistent performance management
- Good appraisals strengthen communication and engagement
FAQs
What is the purpose of a performance appraisal?
To review performance, recognise achievements, set goals and support employee development.
Who conducts a performance appraisal?
Typically, the employee’s direct manager, sometimes with input from HR or peers.
How often should appraisals take place?
Most organisations run them annually, with mid year or quarterly check ins to track progress.
Do appraisals affect pay or promotions?
They often inform decisions about pay reviews, bonuses and career progression, though this varies by organisation.
What makes an appraisal effective?
Clear expectations, honest two way feedback, specific examples and agreed upon next steps.
