Performance and Development Review Policy

A fair, year-round framework for objectives, one-to-ones, reviews, ratings and development – with clear links to pay and a firm line between development and capability.

Editable Word document
15
10pages
Guidance notes included
aml consultancy solutions

People & HR

Performance and Development Review Policy

About this document

What it’s for

A complete policy for running performance and development reviews (often called appraisals or PDRs). It sets out the annual cycle, who does what, how ratings work, how to avoid bias, how reviews link to pay and promotion, and when a concern should move to your capability or disciplinary procedure.

When to use it

  • To introduce or refresh an appraisal scheme
  • As a chapter of your staff handbook
  • Alongside the forms in this pack: PDR, objectives, mid-year, one-to-one and development plan

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

  1. Policy statement and purpose
  2. Scope
  3. Definitions
  4. Principles
  5. Roles and responsibilities
  6. The performance and development year
  7. Setting objectives
  8. One-to-ones and ongoing feedback
  9. Mid-year review
  10. Annual review
  11. Ratings and moderation
  12. Fairness, equality and avoiding bias
  13. Learning and development
  14. Links to pay, bonus and promotion
  15. When performance concerns arise: capability or conduct
  16. Disagreements and appeals
  17. Records, confidentiality and data protection
  18. Manager training
  19. Monitoring and review
  20. Related documents

Also included

  • Employee acknowledgement

How to complete it

  • Choose your review year, timetable and rating scale (clauses 6 and 11)
  • Decide whether reviews affect pay or bonus (clause 14) and delete what does not apply
  • Name the policy owner and brief managers before the first cycle

Key points to check

  • The unfair dismissal qualifying period falls to six months for dismissals with an effective date on or after 1 January 2027
  • Reviews must take account of disability, pregnancy and family leave
  • Northern Ireland has separate employment and equality laws

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

People & HR

£20

for every document in this category

Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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