You’ve probably helped set the process.
The calendar reminders ‘Performance Review – 30 mins‘ go out, the forms get filled, and the meetings happen more or less on schedule.
But afterward, you can’t help but wonder – did it really make a difference?
The conversations are polite. The feedback is there. Yet motivation doesn’t shift, and real growth feels… stuck.
Most review systems miss one key ingredient: understanding how people actually experience feedback.
It’s emotional. It’s personal. And if it’s not handled with care, it can do more harm than good.
However, it’s not just about feelings. According to McKinsey, 60% of companies with an effective performance management system consistently outperform their competitors.
Building a better review process isn’t just nice, it’s strategic.
In this guide, we’ll unpack what actually happens in your team’s mind during feedback – and how you can lead appraisals that motivate, not demoralize.
The Psychological Impact of Appraisals
Employee appraisals are a type of feedback that lets workers know how they are performing in the company. Many project managers, HR teams, and business leaders use employee appraisals to help guide their employees and inspire them to further improve in the workplace.
While this process can help teach a team how to complete projects to the best standard possible, this feedback can also have adverse physiological effects when delivered inappropriately.
Appraisal feedback often influences how an employee perceives themselves and their performance at work. While most appraisals are more positive than negative, it’s important to strike a balance when criticising any behaviours or an employee’s approach to their role. Opting for a constructive approach to criticism helps an employee feel recognised and motivated while still receiving notes for improvement.
In fact, according to experts at Harvard Business Review, “negative feedback often doesn’t result in performance improvement unless it’s delivered constructively, emphasising potential growth.”
In order to combat this, leaders must align their appraisal approach with these principles, especially if they want to improve team morale and motivation further.
The key here is to figure out what motivates your employees and incorporate positive reinforcement into your feedback strategy.
Luckily for you, we’ve put together a list of common pitfalls to avoid as a project manager and three motivational tips to include in your next employee appraisal.
How to Avoid Common Appraisal Pitfalls as a Project Manager
As a project manager, it’s your job to motivate your team, keep them focused and guide them in the right direction. This is why it is common to find yourself in the dreaded appraisal meeting room alongside HR at that tricky time of the month, where you give your employees feedback on their performance.
This said, the appraisal process doesn’t have to be so bad if you avoid these common feedback pitfalls:
- Discard Any Bias Before The Review: We’re all human, we all have a natural bias towards team members. However, this bias should not in any way impact your appraisal process. While you might get on well with your colleagues, favouritism should not influence your feedback on their performance. Instead, stick to performance-based statistics and evaluate each member of your team on their approach to their work rather than their personality.
- Avoid The Annual Review Trap: It’s no secret that infrequent feedback leads to disengagement. According to Gallup Research, employees are 3.6 times more motivated when receiving frequent feedback on their performance. The key here is to ditch long-form yearly reviews and set up frequent, short-form appraisals that keep your team in the loop.
- Don’t Overemphasise Weaknesses: As a project manager, your goal is to motivate your employees. Overemphasising their weaknesses will achieve the opposite. Employees like to be recognised for their hard work and should be praised for the things they are doing well. While criticism is inevitable during a feedback session, ensure that the comments you make are constructive and followed up by something positive.
- Make Sure Your Feedback Is Actionable: Lack of actionable feedback often leaves an employee feeling frustrated. Less than 20% of workers feel inspired by their reviews, so it’s vital to provide step-by-step feedback that is easy for an employee to implement into their work for the best results.
Following these tips, you can avoid the common HR pitfalls during the appraisal process and improve your feedback approach.
3 Motivational Strategies for Effective Appraisals
Now that we’ve covered the strategies to avoid during the appraisal process, let’s delve deeper into some of the best ways to enhance your employee appraisal to encourage team-wide motivation.
Preparation Is Key
Ensure that you are well prepared for your employee appraisal if you want the best results. This includes arranging a private meeting ahead of time, overviewing the process in advance, and even ensuring that the employee is issued with a self-appraisal form prior to the session.
If you’re managing a large team, we’d recommend investing in reliable HR software that can automate meeting booking, send reminders, any forms, and block off your schedule ahead of time.
With more time to prepare for your appraisal, why not also craft a personalised development plan? Each employee engages in different tasks, so a one-size-fits-all approach often fails to scratch the surface.
Instead, come up with a customised performance plan for your worker, full of personalised, actionable insights relating to their specific role in the company – a step that reinforces your commitment to employee development and promotes a learning culture within your team.
Incorporate The 7 Drivers of Employee Engagement
One of the best ways to encourage motivation from your employees is to incorporate the seven drivers of employee engagement into your discussion.
These include:
- Clarity: Is your feedback clear?
- Freedom: Can your employee make their own decisions?
- Growth: What opportunities are there for growth?
- Challenge: Is your employee’s role relevant? Does it challenge them?
- Recognition: Are you regularly praising your employees?
- Voice: Are your employee’s opinions respected?
- Togetherness: Do you foster trust within your team?
Taking notes from any of these seven principles can help you craft an appraisal session that makes an employee feel heard, respected and valued as a member of your team.
Allow Your Employees to Bring Their Own Discussion To The Table
Lastly, let’s talk about your employee’s role in their own appraisal. If you’re able to ask them to prepare a statement ahead of time, ensure that a section of the appraisal provides time for your colleague to review their own performance, discuss concerns and offer their own suggestions for growth.
A positive feedback session should be a two-way street between you and your employee. This is also their chance to review your performance as their manager, so it’s only fair that you give them the opportunity to feel heard.
Wrapping Up
The psychological impact of employee appraisals often goes unnoticed, but it can have a significant impact on a worker’s productivity and wellness in the workplace.
Businesses should rethink their appraisal systems if they struggle to conjure motivation from their employees.
As a project manager, your role is to build trusting relationships with your employees and maintain a highly engaged workforce. The key to success is frequently checking in with your workers, offering frequent feedback and opening up a space for conversation when it comes to growth and development within your team.
