As we head into the new year, many recruitment businesses will be reflecting on what has been a challenging and fast-moving year. Ongoing market uncertainty, evolving client expectations and pressure on margins have all placed increased demands on leaders and their teams. Against this backdrop, engaging, motivating and retaining your workforce in 2026 is likely to be high on the agenda.
It’s also highly likely your business has recently completed an appraisal round. For many employees, those conversations may be taking place after a year of change, disruption or increased workload - making it even more important that appraisals are handled with care, empathy and clear direction. There is much to be gained from well-conducted appraisals – they can be beneficial for both employees and the employer. Appraisals are far more than a box ticking exercise, and they play a crucial role in employee retention by fostering engagement, motivation, and alignment with organisational goals.
The role of appraisals has evolved as technology, automation and AI increasingly shape the recruitment landscape. While AI tools can improve efficiency, provide data insights and support decision-making, they also place greater emphasis on human skills that technology cannot replace — leadership, communication, coaching and emotional intelligence. As automation handles more transactional tasks, how leaders support, develop and engage their teams becomes a key differentiator for recruitment businesses looking to stay competitive.
So why are appraisals a good way to boost employee performance, productivity and retention?
In WTW’s 2025 performance management research, only 39% of organisations said their performance management process is effective at delivering clear goals, regular feedback, fair ratings and linkage to rewards - even though nearly half believe optimising the process would boost productivity by at least 10%.
How appraisals can boost productivity:
- Enhance employee engagement: Regular appraisals provide employees with constructive feedback and boost motivation to support organisational goals.
- Provide clarity on expectations: Appraisals help align employee roles with organisational objectives by setting clear and measurable goals.
- Encourage career development: Appraisals provide a space for employees to identify growth opportunities and look at future potential and promotion.
Once in the appraisal process, it will be key to know where to go next with training and development. We know that to drive your recruitment business in the right direction for 2026 the key development areas will be in:
- Leadership training to support engagement, retention and increased productivity. Leadership training programmes can provide an opportunity to break down any barriers employees face to career progression and demonstrate your organisations’ commitment to your workforce, helping you to engage employees and retain talent.
- Sales Development to improve efficiency, enhance relationships, increase conversion rates and adapt to market changes. Effective sales training has a significant impact on revenue generation and improving the ability of recruitment professionals to secure clients and close deals.
Taking a proactive approach to training and development will also help you to future-proof your workforce and keep pace with a disruptive market due to automation, AI and changes in hiring trends. Training programmes can offer the support employees need to adapt and develop resilience, so your employees and organisation embrace innovation and new opportunities.
“The fact that training is highly tailored to the recruitment sector is immensely valuable for our consultants and the work they do.”
- Aspire
As appraisal conversations conclude, the real value comes from what happens next. Appraisals should act as a starting point for meaningful development discussions - identifying future leaders, strengthening management capability and turning feedback into clear, actionable plans. As your business continues to evolve, investing in leadership development ensures those plans translate into stronger engagement, improved performance and greater retention.
Plus, we have a portfolio of training programmes available to cater to employees at every stage of their recruitment journey. You can also view our Recruitment Learning Journey Roadmap to find out more about which training can suit your needs.
If you have any questions, please contact the Talent Development team below. Let's make it a successful start to the year for the people at the heart of your business.