Performance Review & Progression

Lunch & Learn | People Stories | 29 July 2024

Breakout Room Discussion

• What Performance Review process do you have in place currently?
• What is going well?
• What are some of the challenges?
• What tools/platforms/software / AI/resources are you using to capture/track reviews?
• How do you ensure fairness and consistency?
• What type of rating system/scale do you use? Why?
• Which metrics/indicators/data points are most important for your company? Why?
• What strategies do you use to link performance reviews to career progression?

TL;DR — Key Takeaways & Action Items

• Use software and tools (e.g. Lattice / Leapsome) to streamline performance reviews and ensure continuous feedback.
• Implement calibration meetings regularly to review and calibrate performance scores to help maintain fairness and consistency.
• Encourage a culture of continuous feedback through training and structured processes.
• Simplify rating systems, using smaller, more effective rating scales, such as scores out of 5-, 4-, and 3-point scales, to ensure clarity and ease of use.
• Consider separating performance evaluations from pay reviews to reduce bias and confusion.
• Conduct regular training sessions for managers and employees to align expectations and improve the review process.
• Iteratively implement performance review processes in phases, starting with foundational elements and iterating based on feedback.
• Don’t reinvent the wheel — use open-source resources, information, and tools to build and optimize processes. (e.g. Learnerbly / Juro).

Key Findings and Themes

What Performance Review process do you have in place currently?

• Some companies conduct annual reviews combined with salary reviews. New progression frameworks are needed for senior roles.
• Reviews twice a year with quarterly progression chats are common. Tools like Leapsome help in providing continuous feedback.
• Recent revamps include reviews every two years using tools like Lattice to measure values, competencies, and business objectives.
• 360 feedback has been used for performance reviews, but there’s a shift towards manager-only scores due to peer feedback not being useful/valid (see Challenges)
• Some companies cap the number of people who can be progressed at a time to focus on the development of a smaller group.

What is going well?

• Use of tools like Leapsome and Lattice for automated feedback and review linking has improved process efficiency.
• Linking feedback to growth areas and goals has positively impacted employee satisfaction.
• Regular calibration meetings help ensure fairness and consistency across reviews.

What are some of the challenges?

• Recency Bias → Affecting the accuracy of bi-annual reviews.
• Time Investment → The review process is time-consuming, especially creating customised development plans.
• Feedback Culture → Not all organisations have an established culture of giving and receiving feedback. The Performance Review process needs to be tied to the culture.
• Validity of Scores → Managers and peers are often hesitant to give low scores, which can demotivate employees or prevent a promotion/pay increase.

What tools / resources are you using?

• Leapsome and Lattice were mentioned the most for capturing and tracking reviews. They offer features like 1:1 notes, feedback channels, and integration with Slack.
• Notion & Google Docs are used for manually documenting and tracking performance reviews, but it is a very slow process.
• Hibob, Zavvy, Personio, and CharlieHR were also mentioned.
• The goal is to have a single source of truth.

How do you ensure fairness and consistency?

• Having regular calibration meetings — This is easier when using tools, as they show all scores (incl. 1:1s and comparisons over time/ across the team), increasing fairness.
• HRBPs coaching managers or conducting training sessions.
• Pre-alignment sessions, for example, using frameworks like the 9-box grid to ensure alignment before review cycles start.

What type of rating system / scale do you use?

• Scores / 5 was the most commonly used rating scale, with a smaller scale (3 / 4 points) being more popular for simplicity and consistency.
• 9-Box Grid used for ensuring consistency and alignment in performance evaluations, plus succession planning.
• Metrics tied to business objectives (OKRs / KPIs / SMART goals), competencies/progression frameworks, and growth areas.

What strategies do you use to link performance reviews to career progression?

• Some companies separate pay and performance to avoid bias in performance evaluations.
• “3 Pillars Approach” → Personal growth and goals, competencies, and company goals are key areas for assessing performance.
• Ongoing PDPs (personal development plans), continuous feedback, and structured 1:1s are essential for development.