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View full libraryA performance appraisal policy setting out how the organisation reviews employee performance, agrees objectives, provides feedback, identifies development needs and addresses performance concerns through a consistent and supportive process.
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This template brings together the key information, sections and considerations you need to create a clear, comprehensive and professional HR document. Preview the document below.
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1 Overview
1.1 The organisation is committed to supporting employees to perform effectively, develop their skills and understand how their work contributes to organisational objectives.
1.2 This policy provides a consistent framework for reviewing performance, setting objectives, identifying development needs and addressing performance concerns.
2 Scope
2.1 This policy applies to employees of [Company Name]. The organisation may apply appropriate elements of the process to other workers where suitable.
3 General principles
3.1 Employees will have regular opportunities to discuss their performance with their manager. A formal appraisal will normally take place [annually / twice a year], supported by regular one-to-one meetings and informal feedback throughout the year.
3.2 Appraisals are intended to be constructive, two-way discussions covering performance, achievements, objectives, development and any support required.
3.3 Objectives and performance standards
3.3.1 Employees will be given clear expectations about their role and, where appropriate, agreed objectives for the appraisal period.
3.3.2 Objectives should be relevant to the employee's role and business priorities and should be realistic and measurable where appropriate. Objectives may be reviewed if circumstances or business priorities change.
3.4 Responsibilities
3.4.1 Managers
3.4.1.1 Managers are responsible for:
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This policy provides a straightforward framework for managing employee performance through regular conversations, objectives, feedback and development. It is designed to make appraisals useful and proportionate rather than a once-a-year administrative exercise.
The policy establishes regular performance reviews where managers and employees discuss achievements, objectives, challenges, development and any support needed. The organisation can set its own review frequency to suit its needs.
Employees should understand what is expected of them and how their performance will be assessed. Objectives should be relevant to the role, realistic and measurable where appropriate, with progress discussed during the year.
Appraisals provide an opportunity to identify training, coaching, mentoring and other support. Where performance falls below the required standard, concerns should normally be addressed promptly rather than waiting for the next formal appraisal.
Managers should apply the process consistently while taking individual circumstances into account. Where performance is affected by disability or another relevant circumstance, the organisation should consider appropriate support and reasonable adjustments before reaching decisions about capability.
Use these best practice actions, recommended timescales and process stages to understand when and how the Performance appraisal policy should be used, helping ensure each step is handled consistently and appropriately documented.
Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.
The organisation should choose a frequency that suits its needs. An annual formal appraisal supported by regular one-to-ones and performance conversations is a practical approach.
They can be, but this is a business choice rather than a requirement. If pay or bonuses depend on appraisal outcomes, the organisation should use clear and consistently applied criteria.
Performance concerns should normally be addressed promptly. The manager should understand the reason, clarify the required standard and consider appropriate support, training or coaching. If the issue continues, a formal capability or disciplinary process may be appropriate.
Yes. Objectives may need to change because of changes to priorities, responsibilities or business circumstances. Changes should be discussed and agreed with the employee and recorded.
Not generally. The organisation can decide how appraisal records are acknowledged. A signature or electronic acknowledgement can confirm that the appraisal was discussed, but does not necessarily mean the employee agrees with every assessment.
AI can generate appraisal wording, but it does not automatically provide a coherent, practical performance-management framework. This template gives employers a ready-to-adapt policy covering the key stages from objectives and reviews through to development and performance concerns, reducing the work needed to turn generic wording into a usable workplace process.
How this content is developed and reviewed
The Performance appraisal policy template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.
Darryl Horn, Chartered HR Director
Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.
He has extensive practical experience of managing training and development HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
HRDocBox has been creating practical UK HR documents since 2009.
"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."
"He is someone I trust; consistent, dependable, and committed to doing things properly."
Training and development policies
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