The Christmas holidays are over, routines are back in place, and teams are starting the new year with renewed energy and enthusiasm in a year that’s likely to be challenging and bring changes.
For managers, January often brings a familiar mix of pressure and possibility: a natural moment to regroup, refocus, and build momentum. But if your review strategy still means dusting off the same questions once or twice a year, it’s time to rethink.
There’s growing evidence that the traditional appraisal model simply doesn’t do what it’s meant to. Research from Gallup shows that only a small minority of leaders and employees see their current performance management approach as effective, with most saying it fails to drive either higher performance or real engagement.
Recent research from the University of Gloucestershire goes further, finding that performance appraisals, despite being widely used, “too often fail” and deliver outcomes that are “scarcely meaningful”, frequently shaped more by bias and emotion than by objective performance.
In today's workplace - with hybrid teams, tighter employment rights coming down the line, and rising expectations around performance and wellbeing - the old performance review model isn't just outdated but risks holding staff back.
What doesn’t work?
Stale feedback: appraisals that look back over longer periods risk falling into recency bias, with managers naturally recalling the latest events more clearly than earlier achievements.
Misaligned goals: business priorities change quickly, especially in smaller teams. What was important last autumn may be irrelevant by January.
Lack of real engagement: time’s at a premium, hybrid schedules complicate diaries, and a rigid process gets in the way. Real conversations don’t happen.
Lack of follow-up: goals set, boxes ticked, paperwork filed...then forgotten until next time. Nothing changes.
Worse still, many managers feel unprepared or awkward about delivering performance feedback, especially if there’s no effective system or structure to guide them - and no easy way to keep a clear record of what was agreed.
What works better?
For SMEs, a heavyweight, corporate-style review might look professional on paper, but it rarely works well in practice. In 2026, with employment rights strengthening and the additional workload these bring, a collaborative approach can be far better, because it builds trust and openness.
For reviews to make a real impact, they need to be consistent, constructive, relevant, and rooted in the day-to-day reality of your team. They should help people understand what’s expected now, not just what was previously discussed.
WorkSmarter co-founder Luke Burton believes HR tech has an essential role here:
“It’s important that the performance process doesn’t become overwhelming, particularly for managers who are trying to deliver measurable results while dealing with real people. Effective management tools give clarity and structure to workplace reviews, making them easier to track, assess and evidence.”
The most effective approach
Reviews should be a standard part of everyday work, not feel like a high-stakes annual event. A modern performance approach for SMEs is usually built around:
- Short, focused check-in style reviews, spread across the year.
- Real-time feedback that reflects what’s happening now.
- Clear, visible goals aligned to current business priorities.
- A simple, shared, streamlined system that managers can actually use.
- Completed appraisals saved in one place, giving employees clarity and managers a clear audit trail if decisions are questioned.
To support both performance and individual wellbeing, expectations should be clear and issues picked up earlier.
What this looks like in practice
A practical performance approach might include:
- A January reset conversation
An informal but structured discussion with a clear focus on the next three months. With staff input gathered in advance and reviews scheduled in the calendar, preparation feels manageable, even with a full team to review.
Short catch-ups to review goals, flag issues early, and maintain momentum, whether you’re face-to-face or not in the same location.
Progress stays visible, up-to-date and stored centrally, not lost in emails or buried inside spreadsheets.
Admin support for managers
Customisable templates, shared calendars, digital signing and automatic filing make it easier to structure, record and follow up on performance conversations - and help keep your documentation in good shape for any eventualities.
🚀 How WorkSmarter helps
At a time when teams are regrouping after the winter break and keen to make the best start possible in a demanding year, January is the perfect opportunity to put a new system into practice.
WorkSmarter’s HR platform provides an easy and cost effective way to boost efficiency. Our Performance Management feature is just one of a powerful range of tools designed to support team progress, strengthen documentation and help your people do their best work without burning out.
✨ Ready to reset?
Book a no-obligation demo with one of our friendly platform advisers and see how WorkSmarter can help you reshape performance reviews for 2026.
