In 2025, with budgets tightening, organisational structures evolving and performance expectations rising, appraisals have become even more crucial - a chance to align, reflect and plan for success.
Handled well, they are not just a formality. They are a catalyst for professional growth, clarity and motivation.
A Structured Approach
A well-prepared appraisal conversation gives both parties the chance to assess progress and set direction.
For employees, it is important to come prepared. A structured approach may include:
- Review of the past year: Key achievements, challenges and progress against professional goals. If you set objectives last year, assess how you have performed against them.
- Goals for the year ahead: What do you want to achieve professionally in 2025? What skills do you want to develop?
- Feedback and decisions: Discuss promotions, bonuses or other areas of progression.
- Next steps: Agree on clear action points for ongoing development and review timelines to track progress.
For managers, structure allows for consistency and fairness across teams. Preparation shows respect for your employees’ efforts and creates an environment where constructive, open discussion can thrive.
Building a Case for a Pay Rise
To build a strong case for an increase in remuneration, focus on value, not just tenure. Highlight where you have taken on more responsibility, driven measurable impact or helped deliver business outcomes.
- Be specific: Quantify achievements wherever possible. “I improved efficiency” is weaker than “I reduced month-end reporting time by 30%.”
- Gather feedback: Manager and peer feedback can be a powerful supporting tool, helping validate your contributions across the wider team.
- Benchmark effectively: Use credible market data and talk to peers or trusted recruiters in your sector to understand realistic salary expectations.
If you are underpaid relative to market rate, bring data that is like-for-like: similar company size, assets under management, role scope and seniority.
Example: Saying “I saw a similar job on LinkedIn paying £20k more” will not strengthen your case if that role is at a global firm managing £150bn+ AUM, and you are currently in a 10-person boutique managing £5bn. Comparisons must be realistic to carry weight.
If Things Do Not Go as Planned
Not every conversation will lead to an immediate promotion or pay rise. But feedback, if handled constructively, can lay the groundwork for future progression.
- Ask for clarity on expectations: What does success look like for the next review cycle?
- Agree tangible development goals: Specific steps to work towards advancement.
- Stay proactive: Keep documenting your wins and feedback. It will make your next conversation stronger.
Remember, a “no” today often reflects timing or budget, not a lack of ability.
For Leaders: Creating Impactful Conversations
For leaders, the responsibility goes beyond assessment. It is about inspiring and engaging your team.
- Be transparent: Explain business context. It builds trust.
- Be specific: Recognise contributions meaningfully. Generic praise feels hollow.
- Be supportive: Where expectations are not met, focus on solutions, not blame.
An effective appraisal is two-way: a chance to listen, align expectations and strengthen your culture.
Final Thoughts
Appraisal season is one of the most valuable opportunities in the business calendar. It is a moment to reflect on what has been achieved, recognise the people driving results and set a clear path for what comes next.
By Mark Fallon | Managing Director, Coopman
