Although employee appraisals are not required by law, most employers carry out annual appraisals, but some opt for bi-annual, or even informal regular catch ups.  

Here’s why: 

The benefits of employee appraisals 

1) Improve communication  

Employee appraisals are a positive way to increase dialogue between staff and management. They are a great opportunity to get feedback from your staff, flag up any concerns and address any wider issues. 

A good appraisal will strengthen the manager-employee relationship and promote a culture of trust and transparency, which will help to retain your staff. 

2) Employee engagement  

By offering employee appraisals it shows your team that their career development is important, and that you’re invested in their performance and engagement. It will help your team grow and remain engaged. 

A performance review will help employees understand their strengths, areas for improvement and specific goals to work towards that meet the company’s objectives. 

3) Recognition and motivation  

Regular appraisals are the perfect opportunity to recognise and reward employees for their achievements and contributions.  

Offering positive feedback will motivate staff and boost morale. Feeling valued, supported and appreciated plays a big part in job satisfaction and staff retention. 

4) Help staff achieve objectives  

Setting manageable objectives with appropriate time frames, will give your staff a clear focus and sense of direction, which will help your workforce to reach its full potential. 

Appraisals are an effective way to measure success and set clear expectations, promoting a sense of purpose among employees and improving your company’s overall performance. 

5) Identify training and development needs 

Appraisals can be used to identify any knowledge gaps, or individual training needs. You may find your staff come to you with areas they would like to focus on, or you may like to suggest areas of training that would be beneficial. 

If you feel your staff are underperforming, arranging targeted learning and development programmes could be the answer. This could be on an individual level, or appraisals can be used for the wider picture to give a view of the training needs within the organisation as a whole, identifying skills gaps and possible training opportunities. 

Investing in employee development contributes to their professional growth and will strengthen the talent pool within your company. 

6) Aid career progression 

Appraisals help to support employees growth and development, highlighting the skills and competencies required for career progression. 

Reviews are a crucial tool for decision making, when considered strategically, appraisals can aid talent management and succession planning. Managers can identify high-potential employees and create development plans to prepare them for future leadership roles that will contribute to the company’s growth.  

7) Prevent grievances 

Addressing any concerns early will help prevent them from escalating into unmanageable issues. If your staff are underperforming, or frequently taking unexplained absences from work, it may be necessary to consider appropriate disciplinary action, to maintain a productive and accountable work environment. 

If left unaddressed these situations can cause difficult conversations and potential conflict, which can weigh heavily on your mind. In extreme cases, it may result in grievances and Employment Tribunal claims, which can be costly and difficult to handle.  

8) Retain staff 

Appraisals benefit staff by recognising when their targets have been achieved, it is also the ideal time to discuss bonuses and pay increases, which will increase productivity and contribute to staff retention. 

Having an open line of communication, you’ll have a better understanding of what your employees’ needs are. It provides an opportunity to discuss options such as flexible working hours, remote or hybrid working, part-time or term time hours, based on individual circumstances. 

Understanding and accommodating employees’ preferences can contribute to their job satisfaction and reduce the risk of them leaving the company unexpectedly. By addressing these matters proactively, employers can create a more positive and supportive work environment for their employees. 

How LeavePlanner can help 

LeavePlanner, designed specifically for SMEs, is a valuable tool to support your appraisal process and enhance staff retention by making flexible working achievable.  

With its built-in automatic Bradford Factor calculator, LeavePlanner effectively tracks and reports staff absence levels, aiding in the appraisal process and identifying potential issues with unapproved extended absences that may require disciplinary action. 

If you staff request flexible working hours, LeavePlanner makes it easy to manage shift timetables and arrange any necessary cover, so you are not left short staffed. 

Arrange your free trial today, for easy to use absence management software, call Steve on 01252 636 070 or email 

Pssst! Check out our new all-in-one system, HR Planner, which incorporates an easy-to-use leave management solution, designed specifically with SMEs in mind. 

*Featured image by Freepik

For any queries, call Steve on 01252 636 070 or email