Performance reviews: two words that can prompt groans and eyerolls, even from experienced people managers. But provided there are clear processes in place and they are handled well, they can be a powerful tool for development, motivation, and alignment. Whether you’re in HR or line management, having a solid, repeatable process can turn reviews from a dreaded tick-box exercise into something genuinely valuable.

Here’s a step by step process to managing performance reviews, with clear milestones to diarise.

Set the stage

Milestone: Objectives agreed and documented

The objectives you set for your people are the start of the whole process and enable you to review progress effectively. The objectives should be clear, measurable, and linked to both team and business priorities.

Tip: Create objectives with your team members rather than imposing your ideas. It’s more engaging, and they’re more likely to take ownership. Tie them into personal development goals where you can.

Also, make sure you’re aligning with your company’s wider strategy and talk this through, so your team understand the relevance of the objectives. You can use frameworks like OKRs (Objectives and Key Results) or KPIs (Key Performance Indicators) to build on for individual objectives.

Check-in, not check-out

Milestone: Mid-year review or formal check-in completed

Don’t wait until the end of the review cycle to tell someone they’ve been veering off-track for weeks or months. A mid-year review (often informal) is best practice and helps avoid surprises. Use it to reflect on what’s going well, where adjustments are needed, and if any objectives need tweaking.

Tip: Think “coaching chat” not “mini appraisal.” Ask open questions, and resist the urge to make it all about delivery — talk behaviours, learning, and wellbeing too.

Feedback culture

Milestone: Continuous feedback recorded and shared

Regular, real-time feedback makes performance reviews far less painful. Encourage feedback from peers, clients, and stakeholders — not just a manager’s view from above.

Businesses sometimes use 360-feedback processes or simplified “Stop, Start, Continue” models.

Tip: Praise in public, give constructive feedback in private — and always be specific.

Prepare for the main event

Milestone: Employees self-assess and managers prepare review notes

As you approach the end of the cycle for performance reviews, you should start to prepare for the more formal meeting. Encourage your team to do a self-evaluation. It helps them to reflect and get actively engaged in the process. At the same time you should also reflect on their progress against the objectives, KPIs and / or OKRs and use your notes to compile your manager assessment.

This is also a great time to look at development plans and future ambitions. Think about whether someone’s ready for progression, or if they need more support.

If you have a form for the review, use this to guide your preparations and make sure the employee has a copy of this, to help them prepare, whether it’s online via your HR system or paper-based.

Tip: Calibration sessions with other managers can help ensure fairness and consistency, especially in larger organisations.

The review meeting

Milestone: Reviews completed and development plans updated

Don’t wing it. Make the review a proper conversation and put it in the diary for up to 90 minutes. The meeting may not last that long, but it’s better to free up time, than have to rush and stop before you’re finished and have to reschedule. Use a structured agenda: start with a recap of objectives, cover what’s gone well, where there are gaps, and agree a development plan for the year ahead.

Be balanced, be honest, and always listen. People may remember how you made them feel more than what you said.

Tip: Avoid the “feedback sandwich” — be direct but kind. If you’ve been giving feedback all year, nothing should be a shock.

Follow-up

Milestone: Development activity embedded and support in place

Performance management doesn’t end with the review — that’s just the launch pad. In the new year, check that agreed actions and training are actually happening. Line up mentors, book courses, and keep the momentum going.

Tip: Schedule monthly or quarterly 1:1s to track development progress, as well as day-to-day work and progress against the objectives set.

Summary

Managing a performance review process doesn’t have to feel like climbing Ben Nevis in a snowstorm. With regular check-ins, clear milestones, and a culture of continuous feedback, you can make reviews meaningful and motivating — not just a once-a-year tick-box task.

Need a quick checklist?

✅ Objectives set

✅ Mid-year review

✅ Regular feedback

✅ Review prep

✅ Formal review & development plans

✅ Action the outcomes

If you need advice about how best to manage your performance review process, get in touch.

In the wake of ongoing economic challenges in 2025, businesses in the UK face increased pressure to maintain productivity while ensuring a positive, compliant, and fair working environment. One key area that directly impacts business success is effective and successful performance management. By adhering to the ACAS Code of Practice on disciplinaries and grievances and following best practice principles, employers can manage their workforce effectively, build trust, and optimise performance.

Top ten tips for successful performance management

Here are ten practical tips to help you manage employee performance successfully while staying compliant with legal requirements and supporting your team’s wellbeing:

Set clear expectations from the start

Effective performance management begins with clear expectations. Ensure that every employee understands their role, the specific objectives they need to achieve, and how their performance will be measured. Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for clarity and direction. This foundation helps prevent misunderstandings and provides a clear benchmark for performance evaluations.

Regularly review performance

It’s important to conduct regular performance reviews – not just annually. Have regular one-to-one meetings to provide feedback, address any concerns, and offer opportunities for professional development. This allows you to identify areas for improvement early on and also provides an opportunity to celebrate successes.

Document performance discussions

It is vital to document all formal and informal performance discussions. Keeping accurate records of feedback, goals, and any disciplinary actions ensures that decisions are justified and transparent. Documentation also protects both the employee and employer should any disputes arise in the future.

Be fair and consistent

When managing performance, be sure to apply standards and processes consistently across all employees. Ensure that any performance-related actions—whether positive or corrective—are fair, objective, and based on clear evidence. Avoid biases, and make sure your approach to performance management doesn’t unfairly disadvantage any employee.

Provide constructive feedback

Feedback should be constructive, not punitive. When addressing areas for improvement, provide actionable advice and offer support to help employees meet performance expectations. Use the “SBI” method (Situation-Behaviour-Impact) for delivering feedback: describe the situation, the specific behaviour, and its impact. Constructive feedback should be a tool for growth, not a source of frustration.

Create an open dialogue

Open communication is essential for successful performance management. Encourage employees to share concerns, ideas, and feedback about their role, workload, or any obstacles they may face. This two-way dialogue can help you better understand challenges and work together to find solutions. Being accessible and approachable builds trust, which is essential in addressing issues early on.

Offer training and development opportunities

Invest in the development of your employees by offering training, mentoring, or coaching opportunities. Not only does this improve their skills, but it also signals that you are invested in their growth. By giving employees the resources they need to succeed, you can improve overall performance and job satisfaction, which leads to better outcomes for both the individual and the business.

Support wellbeing and work-life balance

A stressed or overworked employee is unlikely to perform at their best. Prioritise employee wellbeing by promoting a healthy work-life balance, offering flexible working options, and ensuring that mental health resources are available. Supporting wellbeing isn’t just about preventing burnout; it can also lead to higher engagement and better overall performance.

Implement and follow a clear disciplinary procedure

The ACAS Code of Practice outlines the need for a fair and transparent disciplinary procedure when performance issues are not resolved through informal discussions. Ensure that your disciplinary process is clearly documented, accessible to all employees, and consistently followed. Employees should be given an opportunity to respond to any concerns before any formal action is taken.

Recognise and reward good performance

It’s important to recognise and reward employees who consistently meet or exceed expectations. Acknowledging achievements, whether through formal rewards, public recognition, or career development opportunities, helps to motivate employees and reinforce positive performance. Acknowledgement encourages a culture of excellence, showing employees that their contributions are valued.

Why this matters

In 2025, businesses must adapt quickly to a volatile economic environment. By following these ten practical tips for managing employee performance, employers can enhance productivity, reduce the risk of legal disputes, and build a more engaged workforce. Clear expectations, regular feedback, fairness, and a focus on employee wellbeing are essential components of effective performance management.

In a challenging economic climate, businesses that prioritise performance management will not only improve operational efficiency but also cultivate loyalty and engagement. A workforce that feels supported, valued, and fairly treated is more likely to go the extra mile, leading to sustained success and competitive advantage in 2025 and beyond.

If you need any support or advice regarding successful performance management, get in touch.

Anyone who has ever line managed will undoubtedly have had that sinking feeling at some point, knowing that they need to address some kind of problem with the performance or conduct of one of their team. All line managers should feel reassured that they are not alone in feeling this way.

The good times

When everything is going well, and your team are performing and behaving as you want them to, being a people manager is fantastic. You see great results through your people, and that reflects positively on you. Your bosses think you’re doing a great job and all is right with the world.

The harder times

Unfortunately this perfect world is very unusual, certainly in the long term, and there will be times when you have to address a problem directly with one of your team members. Whether it’s an issue with their performance or their behaviour, no-one looks forward to having a conversation about these issues and addressing it head-on. But it really is the best way to make a change for the better.

Top tips

Here are some top tips for preparing for, and having those dreaded conversations:

• Don’t wait.  If something has gone wrong, address it privately at the first opportunity you have. Don’t wait for the next 1-1 in a month’s time and don’t address it publicly in the open office.
• Prepare.  Make notes and identify the problem. Be specific and note exactly what went wrong and what you expected. Be prepared to share this information with the individual.
• Have a conversation.  Everyone has a different perspective on any situation, so allow the individual the opportunity to give their view of the situation.
• Keep it objective.  Keep it factual, balanced, constructive and objective and try to make sure that it doesn’t get personal, or heated.
• Check for understanding.  Seek confirmation that they understand why it was a problem, by asking questions such as ‘Can you understand why this wasn’t appropriate?’ and ‘What do you think you could have done differently?’ Probe them if you feel they don’t fully accept that there was an issue, or take responsibility.
• Follow-up.  Tell the individual that you will forward them a summary of what you’ve discussed, so that they can have a record of your expectations. It’s not a formal warning, just provided to support their learning and development.

The benefits

As managers and business leaders, if you address problems in your teams directly, you can ensure that all your team are contributing to the success of your business. One underperforming team member can do damage to your business success and potentially your brand. By ‘nipping it in the bud’ in a constructive way, you will avoid situations developing and taking a downward spiral. The longer performance or conduct issues go unchecked, the harder it is to address successfully. There’s also more chance of the wider team becoming unhappy.

If you or your management team need support in addressing difficult situations, HelpfulHR can definitely help – whatever the issue. Get in touch, and let’s get them back on track.

I’ve come across several situations where a team, or individual members of a team, are suffering with low morale and poor performance. They’re on a downward spiral as not enough care and attention has been paid to the management of that team and the individuals within it.

Some managers genuinely think their Human Resources department are there to line manage each employee in the business. They don’t feel HR is part of their role and concentrate on providing functional business leadership.

Managing people as well as a function is not easy. As a manager you have several things to think about and probably several people, all with different needs and abilities. The role of HR is to help and guide managers through this aspect of their role and it’s a constant learning curve.

Top tips for successful management

I’ve come up with some ‘top tips’ for managers to help them flourish as a truly good manager:

GET TO KNOW YOUR TEAM.   You may think you know them, but have you spent any quality 1-1 time with them?Do you really know who they are, what they do, what they want to do and what they think of what they do? Regular 1-1s are invaluable and should be in the diary at least monthly.

ADAPT YOUR STYLE.   Remember that as the manager it’s your responsibility to adapt your management style to get the best out of your team. It’s not their job to adapt to you.

MANAGE PERFORMANCE.   Make sure you ask people in your team what they think of their performance. Ensure  you discuss and agree with them what their specific objectives are, and when they are expected to achieve them.

COMMUNICATE.   Ensure you communicate any non-confidential management and financial information to your team. This can include any information you think is relevant, useful and of interest. No-one really complains about being given too much information.

CELEBRATE DIVERSITY.   Accept and ENJOY the fact that you have people in your team with different goals, skills, experience and beliefs. Provided you’re all working to the same departmental goals, it’s a benefit to have such diversity within the team, so draw on it.

PROVIDE CLARITY.   Ensure that everyone in your team knows what their role is, what the boundaries are, where they have authority and what you expect of them.

This isn’t a definitive list, but it should set you up for success as a manager. If this doesn’t work, or you have a more specific need then that’s what your manager is for, to provide you with guidance.

If you advice and support to grow and develop to become the best manager you can be, get in touch. We can’t do the job for you, but we can definitely help!