In a team of five or ten people, the yearly appraisal is the meeting everybody agrees is a good idea and nobody books. There is no HR department to send reminders, the owner is busy, and the last time it was done it turned into an awkward talk about pay. The result is that people go for years without hearing clearly how their work is seen or where it is heading. A small, fixed structure makes the conversation short enough to actually happen.
What the appraisal is for
An appraisal looks back over a year and forward over the next. It is not the place for urgent problems, which should be raised the week they happen, and it is not a tool for surprising anyone. If the employee hears something for the first time in the appraisal, the regular feedback has failed.
It also differs from the regular one-to-one meeting, which deals with the current work, and from the probation period, which decides whether a new person stays. The appraisal is the once-a-year step back.
Preparation: a month ahead
Book 60 to 90 minutes, in a quiet room or a private video call, at least four weeks before. Send the employee five questions and ask them to answer in writing, in a few lines each. Answer the same five yourself about them.
- What went well this year? Name two or three specific pieces of work.
- What was harder than it should have been, and why?
- Which tasks do you want more of, and which less?
- What would you like to learn or be able to do in a year?
- What do you need from me or the team that you do not get now?
Using the same questions on both sides keeps the meeting fair. You compare notes instead of one person delivering a verdict. Look up real examples before the meeting: finished projects, customer comments, mistakes and how they were handled. "You were great this year" is pleasant but gives nothing to build on.
The conversation: three topics
Keep to three topics in this order. Let the employee speak first on each one.
1. The past year (about 25 minutes). Go through the answers to questions 1 and 2. Agree on what the main results were. If your views differ, ask for the example behind theirs before giving yours. Say plainly what you valued most and what you would like to see change.
2. The next year (about 25 minutes). Based on questions 3 and 5, agree on two or three priorities for the coming year and how you will both recognise progress. Fewer is better; five priorities in a small team means none. If you already set three goals for the quarter, link the yearly priorities to them.
3. Development (about 15 minutes). Use question 4. Choose one thing to learn, the form it will take (a course, a project, working alongside a colleague) and a rough cost in time and money. Be honest about what the business can afford. A small, definite commitment is worth more than a long wish list.
Close by asking, "What is one thing I could do differently as your manager?" Then listen, and do not defend.
Keep pay on a separate date
Salary is the topic everyone is thinking about, and it can swallow the whole meeting. Decide pay on a separate date, a week or two later, and say so in advance. That way the appraisal can be about work and growth, and the pay decision can rest on what was agreed. Pay must still be set lawfully; GOV.UK explains the national minimum wage rates and the employer's duties, and your contract sets what you have promised.
The written outcome
Within two days, write one page and send it to the employee for comment:
- Date and who attended.
- Main results of the year, in three to five lines.
- Priorities for the next year, with how progress will be seen.
- Development step, who arranges it and by when.
- Anything you each promised to do, with a date.
Ask the employee to reply with corrections or additions, then keep the agreed version in the personnel file. The outcome is a record of a conversation, so do not add private remarks about character. Notes about a person can be requested by that person, and the Information Commissioner's Office has guidance on handling personal data. Write only what you would be comfortable showing them.
After three or four months, look at the page again in a one-to-one. Priorities that nobody mentions by then were probably not real ones.
When the conversation is difficult
If the year has gone badly, the appraisal is not the first time to say it. Say what you have seen, give specific examples, and ask for the employee's view before you suggest changes. Agree on small steps and a date to review them. ACAS has practical guidance on managing performance, including when to move from informal discussion to a formal process. If you are unsure, ask before writing anything that may later be read as a warning.
What to do this week
- Pick a date in the next two months for each team member and put it in the calendar.
- Copy the five questions into an email template.
- Choose a day for the pay decision, separate from the appraisal.
- Create a one-page outcome template with the five headings above.
- Hold the first appraisal with the person you work with most closely and ask afterwards what they would change.
Sources
- ACAS, Performance management: guidance for employers on setting expectations, giving feedback and dealing with poor performance.
- GOV.UK, National Minimum Wage and National Living Wage rates: current legal minimum pay rates.
- Information Commissioner's Office, Advice for small organisations: handling personal data about employees.