A performance development review (PDR) is a process in which an employee and HR managers discuss the employee’s progress and challenges, as well as goals for the future and training opportunities. This process allows teams to explore the skills they want to develop, set goals, and create an action plan for those goals. It is often part of a performance management cycle that helps you to understand how to improve performance from the employee side as well as from an organisational perspective.
If you are an HR manager, you’re likely responsible for conducting performance development reviews for your employees. But what exactly is a PDR? And how can you make sure the process goes smoothly? In this article, we’ll explore what a performance development review is, how it works, and why it’s beneficial for both employees and companies.
Key Facts: Performance Development Review UK
- A performance development review is a structured conversation between an employee and their manager to discuss performance, achievements, challenges, and future career development goals.
- In the UK, official guidance from Acas recommends that performance reviews should be conducted regularly, at least once a year, and must be fair and objective to avoid discrimination.
- Only 10% of UK employees are actively engaged at work, costing the UK economy an estimated £257 billion annually in lost productivity, a problem effective reviews can help address.
- Organisations that provide regular employee feedback and coaching see higher engagement and can reduce turnover rates by nearly 15%.
Table of Contents
- What Is a Performance Development Review?
- What Are the Problems With Traditional Performance Development Reviews
- Why Are Performance Development Reviews Important?
- What Should Be Included in a PDR?
- How to Conduct a Successful Performance Development Review
- How Does a PDR Impact Performance?
- How Should You Manage the Performance Development Review Process?
What Is a Performance Development Review?
A performance development review is a key part of the wider performance management process. It is a formal meeting to document and improve employee performance, identify training needs and development goals, provide structured feedback, and offer support for professional development.
These reviews are usually performed as formal meetings, and usually take place every month or once a year, depending on the company’s policy. They can also be conducted on an informal basis to address regular performance issues and provide support. The biggest benefit of PDRs is that they give employees a chance to reflect on how they’re doing at work, while also giving them an opportunity to set new goals for achieving their career ambitions.
These reviews are essential for the accomplishment of the company’s goals. PDRs are a way to give career advice and coach employees to perform better at their duties. If they are not conducted properly, chances are your reviews end up being useless from an organisational point of view. In fact, recent studies show that while 68% of employees who receive consistent feedback feel satisfied, less than 30% actually receive it regularly, highlighting a major gap in practice.
It’s important that HR managers know how to run reviews effectively within an organisation. Although PDRs are carried out in different ways, there are some key steps to follow:
- State the purpose of your review: Before you start, make sure everyone agrees on what the review will achieve. Is it simply to give 360-degree feedback on performance, or is it to help employees identify their strengths and weaknesses? What type of support do you want to provide?
- Plan ahead: There are several ways you can plan ahead for your review. You may choose some activities beforehand, such as setting goals or discussing career aspirations with employees. If you’re going to be using a questionnaire or survey tool, have it ready before the review starts so people aren’t waiting around while you prepare it.
- Perform regular performance development reviews: It’s a common practice to conduct PDRs only once per year. Organisational readiness for change calls for regular check-ins and accountability meetings to evaluate performance.
The goal is for both employees and managers to come away from the meeting feeling prepared to face upcoming challenges at the workplace.
What Are the Problems with Traditional Performance Development Reviews
It’s not a secret that PDRs aren’t as popular as they should be. In fact, with only around 10% of UK employees reporting being engaged at work, it is clear that the traditional annual appraisal process is failing to motivate staff. They even use the terms “time-consuming” and “pointless” to describe the outcomes of past appraisals. So, what’s the problem with PDRs?
The reason why they’re not working is probably the structured and bureaucratic way reviews are performed. Employees do not want to complete long-form annual performance check-ins because it represents a lot of work, and it’s hard to establish annual goals and reflect on accomplishments. On the other hand, conducting regular reviews as part of shorter performance management cycles could be better both for employees and managers because you can work with fresh data.
Why Are Performance Development Reviews Important?
In the UK, the Chartered Institute of Personnel and Development (CIPD) frames performance management as a continuous cycle, not a one-off meeting. A well-conducted performance development review is a cornerstone of this process, ensuring that individual efforts align with strategic business goals and that employees feel supported.
PDRs help employees improve their skills, which ultimately leads to better decision-making and improved productivity. For example, if an employee has trouble delegating tasks to other workers, they might be able to learn new skills during the PDR process that will help them delegate better in the future.
HR managers should conduct PDRs regularly so that employees can continue learning throughout their careers.
A performance development review gives employees the opportunity to:
- Reflect on their achievements over the past year and identify areas for improvement.
- Discuss career aspirations and clarify development goals.
- Share feedback with their manager.
- Set objectives for the coming period.
- Receive support from their manager in achieving those objectives
But it’s not only good for employees. Performance development reviews help managers to:
- Understand why workers are doing what they’re doing and whether their actions are aligned with company goals.
- Identify areas where employees need more training or support so that they can build on their current strengths and develop new skills.
- Give employees feedback about how well they’re performing on the job.
- Discover outstanding employees and plan promotions.
- Offer bonuses or higher salaries to qualified employees.
What Should Be Included in a PDR?
Performance development reviews are a way for managers and employees to discuss performance and development. They should be a regular activity of your organisation’s HR strategy.
A PDR is a chance for you to discuss an employee’s strengths, development needs, and career goals. It’s an opportunity for them to tell you what they’ve been doing well, what they want to achieve and how they can improve their performance. You should also discuss any issues that might be affecting the employee’s productivity and how they can be resolved.
To conduct a successful PDR, you first need to split the process into four stages:
1. Performance Expectations
This section should include specific goals or objectives that have been set by the manager and the employee. At this point, you can review the goals established at the beginning of the performance cycle to reflect on accomplishments and obstacles in the next step.
It’s worth mentioning that at this stage it is helpful to judge the efficiency of the objectives you set before. Are they still relevant to your company? Were those goals realistic and aligned with the tools and skills of the employees involved? If not, then you might want to adjust your goals for the next period.
2. Performance Results
This section should include a summary of how the employee performed against their performance expectations. It should also include any feedback from other team members who may have helped with this goal or objective.
An employee’s performance should be evaluated based on the work they’ve completed within a specific period. This can be broken down into smaller tasks that are assigned to employees on a weekly basis. Some companies will include deadlines in their performance expectations, which allow employees and managers to evaluate how well an individual has performed within a cycle or period.
3. Development Plan
This section describes how the employee can increase their performance in the next period by identifying areas for improvement and providing suggestions. These plans should be based on the business objectives of your organisation and aligned with the overall direction of the company.
Furthermore, the development plan should outline the skills that need to be developed, and how this will be achieved. According to UK guidance from Acas, objectives should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
Examples of Development Goals for a Performance Development Review:
- For a Marketing Assistant: ‘To improve my data analysis skills, I will complete the Google Analytics IQ certification within the next three months and present a monthly performance report to the team with three key insights.’
- For a Sales Executive: ‘To increase my closing ratio by 10% in the next quarter, I will attend the advanced negotiation skills workshop and implement a new follow-up sequence for qualified leads.’
- For a Junior Developer: ‘To contribute to the new product feature, I will master Python by completing the advanced online course and pair-programming with a senior developer for at least four hours per week over the next two months.’
4. Training Needs
This section should include any training that would help the employee meet their performance expectations in the future.
For example, an employee working in the sales department might state something like this in a PDR: “I want to improve my customer service skills by improving my ability to handle difficult customers.”
As a manager, it’s part of your job to search for training programmes which can help the employee grow in this particular area. It’s important to provide employees with coaching and career guidance so they can develop their talents. By providing opportunities for growth and advancement, you can retain your best employees and ensure your organisation has well-trained staff to cover roles which demand more responsibilities.
A 2026 report found that lack of career growth is the single most-cited reason UK employees leave their jobs.
After you conduct the review, you likely need to document the current state of your employee and the plans for the future. This technical document must include basic employee information, such as:
- Employee’s name and job title.
- The purpose of the review (e.g., performance management).
- Any areas for improvement identified by the employee during their self-review or through feedback from others (e.g., peer review).
How to Conduct a Successful Performance Development Review
As a manager, you have a unique opportunity to help your employees improve their performance. The process of conducting a performance development review (PDR) is an excellent way to deepen your relationship with your people and help them achieve their goals.
Here are some tips for conducting a successful review:
- Set aside time with each employee. This ensures that they know exactly what you’ll be talking about during the PDR session and why this meeting is important for both parties involved. Be sure not to overload them with too many tasks at once. Focus only on getting started with one area of improvement at a time.
- Communicate your expectations clearly. An important step of a performance development review is to communicate your expectations clearly to your employee. If you’re having trouble communicating your expectations, you can use our guide on how to create an effective performance appraisal. Before you begin your meeting with your employee, set a clear goal for what you want to achieve from the review. What do you want them to learn from this session? What do you hope they’ll achieve by the end of the period? What would be considered “best practice” if someone were conducting this assessment again?
- Gather data about your employee’s performance. You can gather this through reviews from managers and peers, as well as 360-degree feedback from others in the organisation. You can also ask your employees directly what they think they need to work on, what they’re good at or what they’d like to learn more about. This information will help you tailor your discussion with each employee accordingly.
- Use performance data as part of the process. Performance data is essential for understanding where employees stand concerning their goals and objectives. By using performance data as part of the process, you can see how well an employee has performed. You can use this information as part of your discussion about what went well and what could be improved during the performance development review process.
- Make it a team effort. Conducting a performance development review can be a lot of work, so enlist help from other managers and leaders in your organisation. You’ll be able to cover more ground and get more feedback from people who know the employee well. You might even want to hold a group session where several people conduct interviews with whole departments at once.
- Make sure there’s enough time between reviews. An annual review should happen when an employee has been on the job for about six months or longer. Otherwise, it won’t provide much value. Remember to schedule regular check-ins with employees throughout the year so you can address obstacles before they become bigger problems or derail someone’s career path altogether.
How Does a PDR Impact Performance?
Many companies use PDRs as an opportunity for employees to set themselves goals for their next year of employment. This helps them to grow within their roles and become more effective at work. In addition, these reviews are a great way to keep employees engaged and retain talent, as they represent an opportunity for professional growth.
A performance development review should not be seen as a punishment or a way for management to micromanage employees’ performance. Rather, it is a chance for managers and colleagues to develop open, honest relationships with each other so that all parties can learn from team collaboration and peer review. The purpose of a PDR is to provide employees with an objective view of their performance and encourage them to identify areas for improvement. It is also used as part of the management succession planning process, as a way of identifying potential future leaders within the organisation.
How Should You Manage the Performance Development Review Process?
To ensure fairness and legal compliance in the UK, it is crucial to document the process. Acas guidance highlights that employers should keep a written record of what is discussed in a performance development review and share it with the employee. This record is vital for tracking progress and protecting the organisation in case of disputes.
As discussed throughout this article, performance development reviews are a crucial part of any employee’s career development and are key to promoting growth in your organisation. They allow you to get to know your employees on a deeper level, and help you understand their strengths and weaknesses, along with their training needs.
However, it can be difficult to find the time for PDRs if you’re managing multiple employees at once.
An HRIS is the best way to record employee data, such as performance development reviews and reports. With Factorial, you can keep track of all key information about your employees, including PDRs. You can also see how much time they spend at work each day or week, so that you can plan projects accordingly. This will help with planning future projects and assigning tasks within the company structure, which is useful for both management and employees alike!
FAQ
What is a performance and development review?
A performance and development review is a formal meeting where an employee and manager discuss progress, challenges, and future goals. It is a key process for documenting performance, identifying training needs, providing feedback, and supporting an employee’s professional growth within the company.
How to write a performance development review?
To write an effective review, provide balanced feedback on both strengths and areas for improvement. Structure the review around performance expectations, results, a development plan, and training needs. Always support your feedback with specific, data-backed examples to make it clear and actionable.
What is an example of a good performance review?
A good performance review uses specific, positive examples. For instance, for adaptability, you could write: “Your flexible approach to new assignments helps the team navigate transitions smoothly. You learn new skills rapidly to meet changing demands, and your positive attitude inspires confidence.”
What are the 4 pillars of PMS?
The performance management cycle is based on four key pillars: planning (setting goals and expectations), monitoring (ongoing check-ins and feedback), reviewing (formal performance assessments), and rewarding (recognising and rewarding achievements based on performance).
