In its latest research the CIPD has identified the three most important factors that employees consider in a performance review or appraisal.
Feedback and recognition, development opportunities and goal setting rated higher than understanding the link between pay and performance. 
Building trust & engagement
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.
The link between engagement and performance reviews
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.
Full Report
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