The traditional performance appraisal is undergoing a quiet revolution. More and more of my SME clients aren’t just asking for a review of how staff are doing — they’re asking for a deeper insight into who their people are and what they’re capable of becoming. Enter the talent grid.
This shift is largely driven by cost pressures. When resources are tight, businesses want to make sure they’re investing in the right people. The talent grid allows us to map not only performance, but potential; a powerful tool to identify stars, steady contributors, and those who may be struggling.
While larger corporates have used this for years, many smaller businesses have been slower to adopt. That’s changing fast. I’m now supporting clients in implementing talent grids across their teams, and it’s sparking some important conversations. Some staff are high performers but not interested in moving up; and that’s fine. Others are ambitious but need support to get there. And then there are those who are underperforming, where action is often delayed.
What’s interesting is what comes next. Plotting the grid is just the beginning. The real challenge, and opportunity, lies in how leaders follow up. Many managers have learned to tolerate underperformance, often because the process of addressing it feels hard or uncomfortable. That’s where I’m stepping in: helping managers navigate this part of the people puzzle with clarity and confidence.
This evolution from appraisal to talent strategy isn’t just a trend. It’s a sign that SMEs are getting serious about making every person count.
If you are looking for help with appraisals in your business, then please get in touch and find out how we can help today.