Appraisal

What Is an Appraisal?

An appraisal (also known as a performance appraisal or performance review) is a formal process used by employers to evaluate an employee’s job performance over a specific period, usually quarterly, bi-annually, or annually.

It involves reviewing an employee's:

• Quality of work

• Productivity

• Communication and teamwork

• Goal achievements

• Skills and areas for development

• Contributions to company objectives

Appraisals often result in performance ratings, bonuses, promotions, training plans or in some cases, performance improvement plans.

Why Appraisals Matter in the UAE Workplace

In the UAE, where diverse teams work under varying employment contracts (free zone, mainland, government, etc.), appraisals help create structure, transparency, and fairness in talent management.

Key reasons why appraisals matter:

• Promote fairness in raises and promotions

• Identify high performers and future leaders

• Spot issues early and resolve them constructively

• Encourage open dialogue between managers and employees

• Align individual goals with business growth

• Ensure compliance with HR policies and documentation best practices

For companies hiring across multiple emirates or managing multicultural teams, appraisals also ensure standardisation across departments.

Components of an Effective Appraisal Process

A good appraisal should be structured, documented, and forward-looking. Here are the main components:

1. Goal Setting – Defining clear, measurable KPIs at the start of the period

2. Self-Assessment – Letting employees reflect on their own performance

3. Manager Evaluation – Honest, constructive review from direct supervisors

4. Feedback Session – A two-way conversation to discuss results and expectations

5. Action Plan – Agreements on next steps: training, improvement, promotion, etc.

Some companies in the UAE also link appraisals to bonus eligibility, probation confirmation, or visa renewal decisions.

Types of Appraisal Methods

There’s no one-size-fits-all approach to performance reviews. The best appraisal method depends on your company’s structure, goals, and the roles you're evaluating.

Below are the most common types of appraisal systems used globally and in the UAE, each with its strengths, weaknesses, and best-use cases.

Traditional Annual Performance Review

This is the most widely used method, especially in government and large private organisations. How it works: Managers conduct a formal review of the employee’s performance at the end of the year based on predefined goals or general observations.

Pros:

• Structured and easy to document
• Useful for tracking long-term goals
• Often linked to annual bonuses or promotions

Cons:

• Can feel outdated or disconnected
• Feedback may come too late to be actionable
• Employees may feel judged rather than supported

Best for: Stable environments where roles and goals are consistent year-round 

360-Degree Feedback Appraisal

This method collects input from multiple sources: peers, subordinates, supervisors, and sometimes clients.

How it works: Employees receive feedback from various people they interact with, not just their line manager. It’s anonymous and holistic.

Pros:

• Promotes fairness and well-rounded feedback
• Encourages self-awareness and team accountability
• Ideal for leadership or client-facing roles

Cons:

• Time-consuming to collect and process feedback
• May create office politics or bias if not handled properly

Best for: Senior roles, team leads, managers, or employees in cross-functional teams

Common in: Multinational companies in the UAE, especially in consulting, finance, and corporate sectors 

Self-Appraisal

Employees evaluate their own performance against goals or metrics.

How it works: As part of the appraisal process, employees fill out a form or report highlighting their own achievements, challenges, and learnings.

Pros:

• Encourages personal reflection and accountability
• Helps managers understand the employee’s perspective
• Builds confidence and engagement

Cons:

• Risk of inflated or modest self-evaluations
• Must be paired with manager input to be effective

Best for: Knowledge-based roles, creatives, and autonomous positions

Tip: In the UAE, this is useful for multicultural teams where self-reflection promotes cultural sensitivity and self-leadership.

Management by Objectives (MBO)

Appraisals based on specific, measurable goals set at the start of the review period.

How it works: Employees and managers agree on clear objectives. At the end of the cycle, performance is measured by how well these goals were met.

Pros:

• Transparent and measurable
• Great for performance-driven roles
• Encourages alignment with company goals

Cons:

• Doesn’t always reflect soft skills or adaptability
• Can ignore external factors affecting goal completion

Best for: Sales teams, project managers, or KPIs-focused roles

Popular in: Free zone companies and private sector firms in Dubai, Abu Dhabi, and Sharjah where growth metrics are tracked closely 

Behaviorally Anchored Rating Scale (BARS)

Appraisal based on specific behaviour descriptions rather than general scores.

How it works: Employees are evaluated on a scale that includes detailed examples of behaviours for each level of performance.

Pros:

• More objective and detailed
• Reduces vague or biased evaluations
• Encourages role-specific performance standards

Cons:

• Time-consuming to develop behaviour benchmarks
• Requires regular updates for different roles

Best for: Customer service, retail, hospitality, or operational roles with defined responsibilities

Continuous or Real-Time Appraisal

Also known as agile performance management, this approach involves ongoing feedback throughout the year.

How it works: Instead of waiting for quarterly or annual reviews, managers give immediate feedback during check-ins, weekly meetings, or after projects.

Pros:

• Boosts motivation through timely recognition
• Helps fix issues early
• More adaptable to fast-paced environments

Cons:

• Requires consistent effort from managers
• Can become informal or inconsistent without structure

Best for: Startups, tech companies, or remote teams in dynamic industries Ideal in: Dubai-based startups or hybrid teams where agility and speed matter more than formal hierarchy

Choosing the Right Appraisal Method

Choosing the best appraisal method depends on:

• The size of your company
• The type of roles you manage
• Your organisation’s culture and communication style
• Whether you're focused on growth, compliance, or retention

Tip: If you're unsure which method suits your company, our HR consultants can help tailor one to your structure and team culture.

Link Between Appraisals and Employee Growth

In the UAE’s competitive job market, appraisals are key to employee engagement and retention. When done right, they help employees feel:

• Valued and recognised

• Motivated to grow

• Clear on expectations

• Included in company goals

They also give employers a benchmark to make data-driven decisions on training, raises, and promotions.

Common Mistakes Employers Make With Appraisals

• Focusing only on negatives instead of a balanced review

• Using vague or unclear KPIs

• Avoiding difficult conversations

• Not documenting the outcomes

• Conducting reviews too late or infrequently

For HR teams in the UAE, especially those managing multi-site or remote teams, consistency is key. Every employee deserves fair, timely feedback regardless of location or nationality.

Best Practices for UAE Employers

• Set clear KPIs at the start of the year

• Align goals withcompany strategy and UAE labour expectations

• Conduct reviews at least twice a year

• Include development goals (not just evaluations)

• Use appraisal data to inform your HR strategy, not just paperwork

Final Thoughts

Appraisals are more than just routine check-ins, they’re the foundation of a healthy, productive workplace. Whether you're a startup in DIFC or a growing team in Sharjah, having a structured appraisal process builds trust, reduces turnover, and helps your business grow.

FAQs About Appraisals

Is an appraisal legally required in the UAE?

Not by law, but it’s a best practice especially for documenting performance during probation or before termination.

Can appraisal results affect salary?

Yes. In many UAE companies, appraisals are directly tied to bonuses, salary increments, or promotion decisions.

What if an employee disagrees with their appraisal?

Encourage open discussion. HR should facilitate feedback sessions and allow employees to provide written responses or supporting evidence.

Should probation reviews follow the same format?

Not always. Probation appraisals are usually more focused on basic fit, attitude, and performance rather than long-term goals.