Managing performance and conducting appraisals in 2026
Print20 January 2026
In today’s evolving Irish workplace, effective performance management has become a strategic necessity rather than an administrative task. With hybrid working now embedded across many sectors, shifting employee expectations, and an increased emphasis on accountability and development, organisations must ensure their approach to performance conversations is structured, fair and impactful.
At the centre of this framework sits the annual performance appraisal. When conducted well, it enhances engagement, strengthens trust, and aligns employee contribution with organisational objectives. When conducted poorly, it can damage morale, create ambiguity and expose employers to unnecessary employee relations challenges.
This article outlines best practice for preparing, conducting and following up on performance appraisals, providing a practical and modern guide for employers and managers.
1. Preparing for the appraisal: the foundation of fairness
A successful appraisal begins long before the meeting itself. Preparation sets the tone, ensures objectivity and helps create a constructive conversation.
Notify and equip the employee
Managers should communicate the purpose of the appraisal in advance and provide any forms or templates the employee will need to prepare. This supports transparency and allows the employee time to reflect on their achievements, challenges and development needs.
Review the full picture
Managers should carefully assess all relevant documentation: objectives from the previous year, KPI performance, attendance records, training completed, feedback from peers or clients, and examples of behaviour or achievements throughout the year. A balanced review covering both strengths and areas for improvement is essential.
Rate performance independently
Before the meeting, managers should form a clear, evidence-based view of performance. This reduces the risk of bias or having the discussion derailed by recency effects.
Prepare to support development
Finally, managers should consider what support or development the employee may need to succeed in the year ahead. This ensures that the conversation is forward-looking as well as reflective.
2. Conducting the appraisal: a meaningful, two-way conversation
The appraisal meeting should be held in a private, uninterrupted environment whether in person or through a secure online platform. A successful conversation is structured, respectful and collaborative.
Set the tone
Begin by outlining the purpose of the meeting: a two-way discussion designed to give and receive feedback, acknowledge achievements and agree future objectives. This helps put the employee at ease and frames the conversation constructively.
Review the past year
Start with a discussion of the previous year’s objectives or a broader performance review where objectives were not formally set. Managers should share their assessment of the employee’s strengths, challenges and outcomes, drawing on concrete examples where possible.
A key element is discussing any barriers that may have affected performance such as resource constraints, unclear priorities or changes in workload, particularly relevant in hybrid settings.
Discuss and agree ratings
Where ratings are used, the manager and employee should discuss and agree them collaboratively. Differences in perception can lead to important conversations about expectations and standards.
Set SMART objectives for 2026
Looking ahead, objectives should be Specific, Measurable, Achievable, Realistic and Time-Bound. Employees must leave with clarity on what is expected, how their performance will be measured and what support will be provided. This is essential for engagement and accountability in the year ahead.
Address development needs
The appraisal provides an ideal platform to identify skills gaps and agree a development plan. This might include training, mentoring, coaching, project work or shadowing. Each development action should specify the activity, who will deliver it and the expected timeline.
Invite upward feedback
A healthy performance culture is based on trust. Asking the employee for feedback on the working relationship and management approach encourages openness and continuous improvement.
After the appraisal: documenting, communicating and following through
The completion of the meeting is not the end of the process. Professional follow-through is essential for clarity, continuity and legal compliance.
Document the discussion promptly
Managers should record the key points, ratings and objectives agreed. The document should then be shared with the employee for review and signature.
Provide a written summary
A follow-up letter or email summarising achievements, development needs and agreed objectives reinforces the clarity of the discussion and reduces the potential for future disputes.
Store records securely
A signed copy of the appraisal should be placed on the employee’s HR file. Employees should be aware that they may request access to this record at any time.
Ensure continuous engagement
Appraisals should not be annual stand-alone conversations. Throughout the year, regular check-ins and informal feedback help maintain momentum, address emerging issues and support employees to meet their objectives.
As Irish workplaces continue to transform, the organisations that thrive will be those that treat performance management as an ongoing, dynamic process. The annual appraisal is an important anchor, but real impact comes from clear expectations, consistent feedback and supportive leadership throughout the year.
When employees understand what is expected of them, feel heard during performance discussions and receive meaningful support to develop their skills, performance improves and engagement strengthens. This benefits not only individuals but the organisation as a whole.
If you require further support or advice relating to HR, please do not hesitate to contact us at hrsolutions@nfpireland.ie / (066)7102887.
For more information visit https://nfpireland.ie.
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