Feedback and recognition, development opportunities and goal setting rated higher than understanding the link between pay and performance. Worryingly of those surveyed (some 3000 employees) just under half had not had a review in the past 18 months, which suggests that whilst the review process can be a great source of motivation employers are still struggling to balance finding the time or having the energy to do them.
Also in the same report employee attitudes towards their level of engagement was reviewed, and despite the improving economic outlook, engagement levels remain flat on previous quarters and are lower than in 2012 which indicates that the feel good factor is yet to filter down to employees.
An effective appraisal/performance review can build engagement as it gives employees face time with the boss, and a chance to air any concerns or worries they may have about work. Its also a good opportunity to highlight concerns about performance and put actions in place to deal with them.