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Performance Reviews & Appraisals

What is a performance review?

A performance review, a term commonly interchanged with a performance 'appraisal', is a process that employers conduct with their employees. It serves to assess the employee, evaluating their effectiveness at work.

What is included in a performance review?

A performance review consists of a number of different elements which need to be executed effectively in order to make the most of the process. Here is a list of some things that need to be completed for a successful review of employee performance:


Draft an employee appraisal document, or download a template version from

Schedule a meeting with the employee in advance, allowing them to prepare and think of any relevant discussion points.

Determine the goals and objectives of the appraisal.

-During the performance review:

Allow the employee to express their views and input regarding performance and the work that they have undertaken.

Create a discussion and perhaps a plan about what can be done to improve and develop, this can include specifying particular actions to be implemented.

Summarize what has been said, whilst ending the review on a motivating note.

Why is a performance review useful?

There are a of range arguments surrounding the performance review. Although some believe that the practice is obsolete, it does bring benefits for both the employer and the employee.

Firstly, the performance appraisal is a good way of opening communication with an employee - offering an opportunity for discussion about the job more generally - rather than task-specific communication. This helps to create and cultivate the relationship between employees and managers / supervisors.

  • Nurture and motivate employees: the performance review gives an opportunity for managers and employers to express their gratification and praise the performance of employees. This can help to motivate workers as they feel their work is appreciated.

  • Retain employees. By undertaking a performance review, you also have an opportunity to reward good performance with bonuses. This can be effective when trying to retain your top talent.

  • Increase the performance of employees: One of the most important aspects of the 'performance' review or appraisal is identifying areas where employee functions can improve. This will help to benefit not only the company, but also the employee.

  • Address any issues: If staff are having any problems, or there are certain issues that need to be taken care of, the performance review can be a good place to start.

Is there a difference between performance review and a performance appraisal?

There is, effectively, no difference between a performance review and a performance appraisal. There are, however, differences between performance review and performance management. Performance management refers to an ongoing process in which you continuously help to develop and monitor the performance of an employee or staff member.

To learn more about performance reviews and appraisals, please refer to the links below:

Tips on how to conduct performance reviews

Conducting performance appraisals, and the important elements to include

Why are performance reviews important?

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