How Law Firms Can Use Appraisal Season to Strengthen

As appraisal season approaches, many law firms are preparing to review performance, discuss career progression, and evaluate compensation. But beyond salary adjustments and ratings, this period represents something far more valuable, it represents an opportunity to build loyalty, engagement, and long-term retention.

At Pembury Legal, we regularly speak with business services professionals who tell us that what drives their decision to stay or leave isn’t always pay, it’s how they feel during review season. Do they feel heard? Recognised? Understood? Fairly rewarded for their contributions? These questions often carry more weight than the final figure on their payslip.

Fair Appraisals = Stronger Retention

There’s a clear link between a transparent, well-managed appraisal process and employee retention. When people believe the review process is fair and consistent, they’re more likely to stay engaged and motivated. Conversely, when reviews feel arbitrary or biased, trust erodes and with it, loyalty.

In a competitive market, where business services professionals are increasingly sought after, the firms that communicate openly about performance and reward tend to retain top talent far more effectively.

A fair process signals respect. And when employees feel respected, they are far more likely to invest discretionary effort, that extra level of commitment and care that truly drives firm success.

Common Pitfalls We See

Even well-intentioned appraisal cycles can miss the mark. Some of the recurring pitfalls we hear about include:

Inconsistent feedback: Different departments or managers apply different standards, leading to confusion and frustration.
Pay disparity: Unexplained differences between comparable roles can quickly undermine morale.
Limited recognition: When reviews focus solely on areas for improvement, achievements risk being overlooked, diminishing motivation.

These issues are not always about culture or intent, often, they arise from a lack of structured benchmarking and shared understanding of performance expectations.

Another frequent issue is “review fatigue” - when feedback discussions are rushed, formulaic, or disconnected from career development. The result? Employees perceive the process as transactional rather than transformational.

A Data-Led, Transparent Approach

The most effective appraisal processes are those grounded in clarity and data. We’ve seen firms strengthen engagement and retention by:

Benchmarking salaries and roles against the market to ensure fair and competitive compensation.
Providing transparency around what “good performance” looks like, across both fee-earning and business services functions.
Aligning reviews firmwide, so that feedback and progression pathways feel consistent, regardless of department.
Building development into the conversation, not just evaluation, giving employees a roadmap for growth, training, and internal mobility.
Training managers to deliver constructive, empathetic feedback that inspires rather than intimidates.

This not only builds trust, it creates a shared sense of purpose across the firm.

Partnering for Insight

We help law firms understand both sides of the retention equation - how their internal structures, salary bandings, and progression pathways compare across the market, and what employees truly value in today’s workplace.

With data-driven insights from across the business services space, we provide firms with the context needed to make informed, equitable decisions during appraisal season, decisions that support fairness, transparency, and genuine retention.

As firms look ahead to 2026, this is the perfect moment to turn performance reviews into meaningful conversations. The kind that strengthen relationships, reward loyalty, and build lasting engagement.

If your firm would like to discuss salary benchmarking or role structures ahead of the new year, the Pembury Legal team would be happy to share insights.

Adam Shookhye Louise Grimes

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