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Performance reviews are a critical component of any effective workplace. They’re more than just a check-in—they are opportunities for growth, alignment, and making sure everyone is moving toward shared goals. With the right approach, performance reviews help create stronger teams, support career growth, and align individual contributions with broader organisational success.

This article will guide you through designing a performance review template tailored for UK employees in 2025. We’ll look at the key elements of an effective review process, explore best practices, and provide performance review examples to inspire your approach.

Why performance reviews matter

An effective performance review process serves a few purposes:

• It provides employees with valuable feedback on their contributions.
• It makes sure there is alignment between individual performance goals and company objectives.
• It identifies areas of poor performance and outlines ways to improve through a performance improvement plan.
• It creates opportunities for career growth and professional development.

Whether through formal performance reviews, continuous feedback, or a combination of both, the goal is to create an environment where employees feel supported, motivated, and engaged.

Types of performance reviews

Different workplaces and roles will benefit from different types of performance review. Here are some common formats:

1. Annual performance reviews

The traditional model of annual reviews involves performance evaluations – a comprehensive assessment of performance goals and achievements over the course of a year. These reviews are ideal for addressing long-term objectives and big-picture alignment.

2. Quarterly reviews

Shorter, more frequent reviews provide opportunities for continuous feedback and quicker course corrections.

3. 360-degree feedback

This format involves getting peer feedback, as well as input from managers, and sometimes clients. It provides helpful feedback and a well-rounded view of someone's team performance and personal contributions.

4. Check-ins or one-on-one meetings

Informal but regular conversations between employees and managers  are great because they create open communication and allow for real-time adjustments.

5. Performance Improvement Plan (PIP) reviews

For employees facing challenges or poor performance, structured discussions focus on specific actions needed for improvement.

Key components of an effective review process

To conduct effective performance reviews, you should be focusing on these key elements:

1. Clear performance expectations

Set clear, measurable objectives at the beginning of the review period. Employees need to understand what’s expected of them to perform effectively.

2. Continuous feedback

Don’t limit feedback to the formal performance review. Incorporate regular check-ins to create a more casual and regular flow of conversation. This way you can give your employees ongoing insights and address challenges before they escalate.

3. Actionable feedback

Feedback should be specific, tied to real examples, and actionable. Avoid vague statements—focus on tangible ways employees can improve.

4. Tools and resources

Consider using performance management software to track goals, document progress, and streamline the review process. Tools like performance review software can also help standardise templates and make sure there is consistency across teams.

Designing a performance review template

An effective employee performance review template includes a mix of questions addressing past performance, future goals, and professional development. Here’s a few examples of performance review questions to include in your templates:

1. Questions about past performance

• What were your most significant achievements during this review period? Or, What accomplishments are you most proud of this year?
• Were there any challenges you faced? How did you address them?
• How would you assess your contributions to team performance?
• How do you think your contributions align with the company’s objectives?

2. Questions about current job performance

• How well do you feel you met the performance expectations outlined for your role?
• What feedback have you received from your colleagues or clients?
• What feedback from colleagues or managers has been most helpful?
• Are there specific skills or competencies you’d like to develop?
• What resources or support do you need for your professional growth?

3. Questions about future goals

• What are your top priorities for the next quarter/year?
• Are there specific performance goals you’d like to achieve?
• How can the company support your career growth and career development? Or, What are your career aspirations, and how can we support them?
• Are there any new projects or responsibilities you’d like to take on?
• What steps can you take to enhance your team performance?

Using performance management software

Investing in the right tools can make the performance review process much easier for everyone, and more impactful too.

Benefits of performance management software:

• Tracking progress: You can monitor achievements and challenges over time.
• Standardised templates: Performance management software makes sure there is consistency across teams with ready-to-use performance review templates.
• Centralised feedback: It will keep all feedback in one accessible place.
• Customisable features: As a manager, you can tailor reviews to fit different roles and departments.

By automating parts of the employee evaluation process, software frees up time for managers to focus on delivering constructive feedback, creating action plans, and building stronger relationships with their teams.

Addressing poor performance

When an employee struggles to meet performance expectations, it’s important to handle the situation with care and professionalism.

Steps to address poor performance:

1. Identify the problem: In the performance conversation, use specific examples to illustrate areas where performance is falling short.
2. Develop a Performance Improvement Plan (PIP): Outline clear, achievable steps for improvement and set a timeline for review.
3. Offer support: Provide resources, training, or mentorship opportunities to help the employee succeed.
4. Follow-up: Regular check-ins ensure accountability and show that you’re invested in their success and future performance.

A supportive approach to performance issues not only helps struggling employees but also reinforces a positive company culture.

Best practices for effective performance reviews

1. Two-way conversations

Performance reviews should be dialogues, not monologues. Encourage your employees to share their perspectives and provide input on how the company can support their goals.

2. Focus on growth, not just assessment

While it’s important to evaluate past performance, dedicate time to discussing career growth, training opportunities, and long-term aspirations.

3. Keep feedback balanced

Provide a mix of constructive feedback and positive feedback. Acknowledging successes motivates employees to continue excelling.

4. Use examples

Ground feedback in specific examples to make it more actionable and relevant.

5. Document the process

Record discussions and agreed-upon goals into development plans to ensure accountability and track progress over time.

How to avoid common pitfalls in performance reviews

1. Lack of regular feedback

Waiting for the traditional performance reviews to share insights can leave employees feeling blindsided. Incorporate frequent feedback to keep employees on track and also to help them demonstrate continuous improvement.

2. Overemphasis on ratings

Whilst performance ratings are a useful metric, they shouldn’t overshadow the importance of valuable feedback and growth-oriented discussions.

3. One-size-fits-all templates

Tailor simple performance review templates to fit different roles and departments. What works for one team may not be effective for another.

Performance reviews are a really important tool for building stronger teams, driving career growth, and succeeding as an organisation. By incorporating constructive and continuous feedback, and using tools like performance review software, you, as an employer, can master this critical component of a thriving workplace.

Whether you’re designing an annual performance review template, conducting quarterly reviews, or exploring innovative approaches like 360-degree feedback, the goal is the same: to empower employees, enhance team performance, and create a culture of growth and engagement.

With a thoughtful approach and commitment to improvement, your performance review process can become a cornerstone of your organisation’s success in 2025 and beyond.