Performance Appraisal Process: Examples For Your Small Business
At PMP, we understand the importance of having a solid, fit-for-purpose, performance appraisal process at any small business. That's why we continuously refine our own internal process (and update our performance appraisal examples) to ensure they meet the unique needs of our business.
We often find that when working with new clients, one of their priorities is establishing a simple yet effective employee appraisal system. If you're in the same boat, here's the simple way to introduce performance appraisals for your business:
Performance appraisal examples
Let’s start with some examples of performance appraisals, so you can understand the sort of things you should be looking for, asking, and recording.
Here are real‑world examples of performance appraisal methods and phrases small and mid‑sized businesses can use. These can be tailored for both positive feedback and areas needing improvement.
Positive feedback
It’s always important to try and incorporate positive feedback and examples of good behaviour or work in any appraisal. Not only is it good for morale, but it helps employees take on constructive or negative feedback more evenly.
Some examples to try and use where appropriate:
“You consistently meet deadlines and your reliable delivery has helped us stay on track with client projects.”
“Your clear communication style has reduced misunderstandings between team members.”
“You regularly suggest fresh ideas that improve our internal processes.”
“Your willingness to collaborate means new starters always feel well supported.”
Constructive feedback
Unfortunately, it’s unlikely that you’ll get through your career in HR only giving out positive feedback! So, we thought including a few tried and tested, workplace-appropriate performance appraisal examples would help you get to grips with negative feedback.
“Consider prioritising tasks more effectively—this will help avoid last‑minute rushes.”
“Occasionally, your responses to internal emails are delayed—more timely replies would help the team.”
“You have good ideas, but try sharing them more often in team meetings.”
“When providing feedback, aim to explain the impact more clearly rather than stating outcomes only.”
The best performance appraisal methods to try
Here are our top tips on how to improve your team’s performance appraisal process, including setting expectations, boundaries, and timelines.
Start with informal feedback
Incorporating informal feedback into your regular conversations with team members is a great starting point for building up to the performance appraisal itself. It’s especially important to get a system of informal reviews established if your team isn't used to receiving different types of feedback.
We advocate for open communication channels where constructive feedback flows freely, both ways. This helps set the stage for more structured appraisals down the line.
Set clear expectations
Clear expectations are crucial for employee performance. Start by creating comprehensive job descriptions that outline roles and responsibilities. Then, go a step further by articulating performance expectations, goals, and objectives for each team member. This clarity ensures everyone understands how their work contributes to the business's success, and what being good at their job looks like in practice. This will make any required performance appraisals much easier to understand for both you and the employee.
Book in regular check-Ins
Regular one-on-one meetings are essential for providing guidance and support to your team. Depending on individual needs and job roles, aim to schedule monthly check-ins to discuss progress, address challenges, and offer help when it's needed. Consistent communication builds a culture of accountability and continuous improvement.
Document progress
Keeping records of your team’s performance throughout the year may seem daunting, but it's invaluable for tracking progress and having records to use as future performance appraisal examples.
Document achievements, areas for improvement, and significant events or milestones. This documentation will be your foundation for more structured performance reviews in the future, as well as being helpful to rely on if things aren’t going so well.
Align review meetings to business planning
While regular check-ins focus on day-to-day progress, the process will have much more impact in your business if you align these discussions with your broader business goals. Consider introducing performance review meetings that coincide with your business planning cycle. This allows you to assess progress against any business targets, discuss strengths, identify areas for development, and set goals for the future.
Review and improve the process
Reflection and improvement are integral parts of any performance appraisal process. Take time at the end of each review cycle to evaluate what worked well and where there's room for improvement. Solicit feedback from your team to ensure the process evolves in line with your business needs.
Final thoughts
Introducing a simple performance appraisal process still requires a bit of planning and some commitment, but the benefits will be clear for you and your employees. By sharing informal feedback, setting clear expectations, and scheduling regular check-ins, you will be much more capable of effectively evaluating your team’s performance and supporting their growth and development.
Not sure where to start? Get in touch with our team of HR specialists for a tailored appraisal process for your business.