Annual Appraisal Guide

An annual appraisal is a planned discussion about work over a defined period: what was delivered, what was difficult and what should happen next. The employee brings their experience; the manager brings observations and the expectations of the role.

Use it alongside regular conversations. Waiting a year to discuss a problem makes examples harder to recall and leaves less time to provide support.

UK organisations use these terms loosely, and many use them interchangeably. The differences that matter are how often the conversation happens and what it is for.

• Annual appraisal

  How often

  Once a year

  Main purpose

  Look back over the year, agree objectives and development for the next one.

• Mid-year review

  How often

  Halfway through the year

  Main purpose

  Check progress on objectives and adjust them if circumstances changed.

• One-to-one or check-in

  How often

  Weekly to monthly

  Main purpose

  Day-to-day priorities, problems and support.

• Probation review

  How often

  During and at the end of probation

  Main purpose

  Confirm a new starter is settling in and meeting the role’s standards.

• 360 feedback

  How often

  Occasionally, for development

  Main purpose

  Gather views from peers, direct reports and others who see the person’s work.

The employee and their line manager are the core of the appraisal. The manager should be someone who has seen the employee’s work over the period; if the line manager changed during the year, ask the previous manager for input before the meeting.

In a small business, the owner or a director often runs appraisals. That works well when they see people’s work day to day. If they do not, ask a supervisor or team lead to contribute observations. HR, where you have it, is there to support a fair and consistent process — not to run the conversation.

Confirm the review period and the purpose of the meeting. Send the form and ask both people to prepare examples. Allow enough time for the employee to ask questions about the process.

Check the objectives agreed at the last review and any changes during the year. Gather evidence from across the period, including less recent work. Avoid letting the latest project dominate the whole review.

• Share the questions and any rating definitions.
• Ask the employee to complete a self-assessment.
• Prepare manager observations separately.
• Choose a private setting with time for discussion.

Preparation is where most annual appraisal cycles slip. Forms go out late, a few people do not complete them, and meetings happen with one side unprepared. Set a clear deadline for self-assessments — a few days before the meeting — and check who is still outstanding.

If you are reviewing several people, stagger the meetings so you have time to read each self-assessment properly and prepare your own view.

Start with the employee’s reflection. Ask what they are proud of, what they found difficult and what support they needed. Then share your observations using specific examples and their effect.

If your views differ, explore the evidence and context. Record an unresolved difference honestly rather than forcing a shared rating. Separate a lack of skill from unclear expectations or insufficient resources.

Spend time on the next period. Agree a small number of objectives and development actions, with owners, measures and dates.

Allow around an hour. A predictable structure helps the employee relax and makes sure the future gets as much time as the past.

• 5 min

  Focus

  Purpose and tone

  Questions to ask

  “How are you feeling about the year overall?”

• 15 min

  Focus

  The employee’s reflection

  Questions to ask

  “What are you most proud of? What was hardest?”

• 15 min

  Focus

  Manager’s observations

  Questions to ask

  “Here is what I saw — how does that match your view?”

• 15 min

  Focus

  Objectives and development for next year

  Questions to ask

  “What should we focus on? What support do you need?”

• 10 min

  Focus

  Summary and next steps

  Questions to ask

  “Let me summarise what we agreed — have I missed anything?”

Open questions get better answers than yes-or-no ones. Choose a handful that fit the person and the year; you do not need to ask them all.

• What are you most proud of from this year?
• Which objectives went well, and which were harder than expected?
• What got in the way of your work, and what helped?
• What feedback have you had from colleagues or customers?
• Which parts of the role do you enjoy most, and least?
• Is there anything I could do differently to support you?
• What would you like to learn or develop next year?
• Where do you see your role developing over the next year or two?
• Is there anything we have not discussed that you want to raise?

Disagreement in an appraisal is normal and often useful. When your view differs from the employee’s, ask for their examples first, then share yours. Look for the reason behind the gap: unclear expectations, work you did not see, or a change in priorities during the year.

If you still disagree, say so plainly and record both views. Forcing agreement produces a document neither person believes. If a performance concern is serious enough to need a formal process, keep that separate from the appraisal and follow your organisation’s procedure.

Write a short summary while the conversation is fresh. Share it with the employee and confirm any amendments. Store it according to your organisation’s agreed approach.

Book an earlier check-in to review actions. At that meeting, ask what progress has been made and what needs to change; do not simply check whether the form was completed.

Ratings can make results easier to compare across a team, but they also pull attention away from the conversation. If you use them, define each point on the scale in plain language and share the definitions before anyone completes a form.

Avoid forced distributions in small teams, where a fixed share of people must receive each rating. With a handful of employees they rarely reflect reality. If pay decisions are linked to appraisal ratings, explain how — and consider holding the development conversation separately so it is not overshadowed.

Long question lists produce repetitive answers. Choose prompts that inform a decision or useful discussion. Vague labels such as “more proactive” need a concrete example of what someone should do.

Keep developmental conversation distinct from any formal capability or disciplinary process. This guide is a practical meeting structure, not employment-law advice. Acas provides additional guidance and appraisal form templates.

Use this checklist to run an annual appraisal cycle from start to finish.

• Confirm the review period and meeting dates.
• Share the form, any rating definitions and last year’s objectives.
• Ask the employee to complete a self-assessment by an agreed date.
• Gather your own evidence from across the whole year.
• Read the self-assessment before the meeting.
• Hold the meeting in private, with enough time.
• Agree three to five objectives and one or two development actions.
• Write and share a summary within a few days.
• Book a check-in for three to six months’ time.
• Store the record securely according to your organisation’s approach.

• Acas: reviews and appraisals
• Acas: appraisal form templates