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Performance Development Reviews (PDRs) are sometimes considered an old fashioned term, however for many organisations, they are the cornerstone of the performance review process. In our experience the term Performance Development Review is more commonly used in public sector organisations including the NHS. Private sector organisations have more commonly moved towards the term performance appraisal or performance management process because these are seen as less backward looking, with more of a focus on ongoing feedback.
Now if you want to understand more about the difference between performance appraisal and performance management you can read our blog post here. However, for the purpose of this article we are going to clarify the subtle difference between performance reviews or appraisals and a PDR. So, in our experience organisations that use the term PDR are trying to emphasise the development and growth opportunities that can be associated with the conversation. The purpose is more about engagement and retention of staff by identifying areas for growth and career opportunities. There will be some conversation about goals and hoe people overcame their biggest challenges that year, but because the appraisal usually doesn’t/cannot link to pay or reward then the focus should be more about the indivdual’s progress. So that’s the purpose – it isn’t always the reality, read on to find out how you can show your organisation how to approach performance development reviews.
A Performance Development Review (PDR) serves as a dedicated opportunity for managers to engage in meaningful discussions with employees about their professional growth and development needs. It is an essential way of motivating top performers and fostering a culture of continuous improvement.
The key benefits of PDRs include:
By structuring PDRs effectively, organisations can ensure that development remains a priority and that employees receive the necessary support to thrive in their roles.
There is no one-size-fits-all approach to PDRs. However, organisations can follow some best practices to maximise their effectiveness.
Many organisations only carry out annual reviews, often as part of a formal review process. However, this can make development feel like a reward or substitute for a salary increase rather than an ongoing process of individual and organisational growth.
We recommend conducting PDRs at least three months into the year. This allows managers to track progress against objectives set at the start of the year and take corrective action if employees are falling behind. Additional check-ins, such as a mid-year or nine-month review, can further reinforce the importance of continuous development.
To the right, we have our Actus model showing how you can achieve year-round performance conversations and include performance development reviews. Certainly, this model can be adapted to suit your business needs. For example, you could have a performance development review at the mid-year appraisal or at the 9-month mark too!
PDR’s do need to be carried out on an ongoing basis and individual objectives should play a part in these conversations. It is logical that development should be aligned with skill gaps or help the individual achieve their performance metrics or goals. Development shouldn’t be completely detached from the performance conversation or appraisal process. It should fit into one overall whole which has a strong focus on helping the individual to develop and grow, but is also an opportunity to provide feedback.
Busy schedules can lead to forgotten conversations, which may result in missed development opportunities or miscommunications about career progression. Documenting PDR discussions ensures continuity and accountability. Sometimes difficult conversations need to take place, making sure these conversations are captured means that line managers can have full confidence that the message was received and hopefully the individual’s performance is going to be back on track.
A good performance management system, such as Actus Software, enables managers to record these conversations and access them easily when needed. This helps HR teams track employee growth and identify internal talent for promotions or new roles.
A common misconception is that personal development should only be provided on a ‘business needs’ basis. While it is essential to align development opportunities with strategic goals, excluding certain employees can lead to disengagement and stagnation. Development Reviews should be offered consistently with balanced feedback and growth opportunities available to everyone.
Remember that development methods can extend beyond traditional face-to-face reviews. Organisations can leverage digital tools, webinars, and virtual training sessions to ensure equal access to learning opportunities. Can you offer secondments, more responsibility or on the job learning by involvement in specific projects? Thinking creatively about development options can be really helpful.
Did you know that Actus regularly offers free webinars, podcasts, videos and a wealth of free development resources that your people can access?
Watch our Webinar: How to Conduct a Remote Development Session
PDRs should not be treated as a ‘tick-box’ exercise of employee evaluation. Instead, they should be viewed as a valuable opportunity to enhance employee engagement, talent retention, and confidence building.
To maximise impact:
If either party appears disengaged, it diminishes the value of the process. Therefore, organisations should cultivate a workplace culture that prioritises employee development as a strategic objective.
While PDRs offer numerous benefits, several common mistakes can undermine their effectiveness.
Annual PDRs, while better than none, often lead to outdated objectives and limited development tracking. A continuous feedback culture, with quarterly or biannual reviews, ensures real-time progression.
Employees should be encouraged to prepare for PDRs by reflecting on their achievements, challenges, and areas for improvement. Providing them with guiding questions or a structured template can make the process more effective.
A PDR without follow-up actions is ineffective. Clear, documented action plans should be reviewed periodically to track progress and ensure accountability.
PDRs should not be solely manager-driven. Employees should have the opportunity to voice their aspirations, concerns, and feedback on how the organisation can better support their growth.
Well-executed PDRs offer significant advantages for businesses. These include:
1. Enhanced Employee Performance and Productivity
Regular development discussions help employees understand expectations, receive guidance, and improve their performance. By identifying and addressing skill gaps early, businesses can prevent underperformance and boost productivity.
2. Improved Employee Retention and Engagement
Employees who feel supported and valued are more likely to stay with an organisation. High-quality PDRs demonstrate an investment in professional development, reducing turnover rates and increasing long-term commitment.
3. Stronger Talent Pipeline and Succession Planning
Through structured PDRs, businesses can identify high-potential employees and create clear career development pathways. This strengthens succession planning and ensures that leadership roles are filled internally when vacancies arise.
4. Increased Organisational Agility
A workforce that continuously learns and adapts is more agile in responding to industry changes. PDRs encourage ongoing professional development, equipping employees with skills that support business growth and innovation.
5. Better Communication and Team Collaboration
Encouraging open dialogue between managers and employees fosters a culture of trust, transparency, and collaboration. Employees who regularly discuss their progress and goals are more aligned with the company’s strategic direction.
Despite good intentions, many organisations struggle to implement PDRs effectively. Here are some common problems and how to overcome them:
Some PDRs become superficial, with vague discussions that fail to address specific performance issues or development goals. Managers should have the communication skills to provide balanced feedback and tailor conversations to each employee, focusing on concrete achievements, challenges, and personalised development plans.
If managers adopt different standards for PDRs, the employee experience will be inconsistent and has the potential to turn performance reviews into opportunites for cynicism. Organisations should establish clear guidelines, provide training for managers, and use performance management software to standardise the process.
A PDR without tangible follow-up actions is ineffective. Managers should ensure that each review is a wway to monitor progress and results in clear, actionable steps that are documented, tracked, and revisited in future discussions.
In some organisations, employees hesitate to share honest feedback due to fear of negative repercussions. Creating a safe, open environment where employees feel encouraged to express their thoughts leads to more constructive PDR discussions.
If PDRs are conducted simply to ‘tick a box,’ they will not yield meaningful results. Businesses should integrate PDRs into a broader culture of development, where feedback and career progression are ongoing priorities.
Performance Development Reviews are a vital tool in fostering a high-performance culture. By conducting PDRs at regular intervals, recording discussions, including all employees from top management down, and ensuring commitment to the process, organisations can drive engagement and career growth.
Leveraging technology, such as Actus Performance Management Software, further enhances the efficiency and impact of PDRs by enabling structured, ongoing performance conversations and goal tracking.
If you want to learn more about conducting effective remote PDRs, watch our recent webinar: How to implement continuous performance management
Additionally, download our free manager’s guide to setting objectives: ‘7 Simple Steps to Setting Objectives’ to support managers in creating meaningful development plans.
Actus performance management software is designed to embed SMART principles into your organisation’s processes. With the ability to set, track measurable objectives and review objectives, Actus ensures your goals are Specific, Measurable, Achievable, Relevant and Time-bound. The software facilitates continuous performance conversations, real-time feedback and reporting, so you can monitor progress and adjust objectives as needed. By using Actus you can increase employee engagement, accountability and overall performance so your organisation stays on track to achieving its goals.
The company has evolved over the past 12 years, starting with pure performance management. Then building out our own fully integrated talent, learning, compliance and feedback functionality. We also have API’s to link to payroll/HRIS systems. This means you can start with Actus as a software solution for your initial requirements. With full confidence that this can evolve over time to address future strategic requirements with fully integrated add on modules. With the same great customer service!
Take a quick look at the Actus system tour here:
Book a demo and discussion with one of our expert team who can outline how Actus can address your people challenges and will walk you through Actus Performance Management software:
Actus believe in a better workplace for people, to support Managers in the Appraisal process, we have a free manager’s guide “7 Simple Steps to Setting Objectives” available to download here:
Download 7 Simple Steps Manager’s Guide
Actus offers more than free HR resources and great performance management software. Our team of organisational development consultants can help with your performance management needs or smart goal setting requirements and we also have a podcast called ‘The HR Uprising’ which has a variety of informative topics in business and HR. Please visit the HR Uprising website link below, or download wherever you get your podcasts from (YouTube, Spotify, Apple, Audible etc).
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