Running a fair performance appraisal cycle: a step-by-step process
Self-assessment, manager review, HR calibration - how to set criteria, weights and timelines so appraisals feel fair and finish on time.
Appraisals fail for two reasons: people do not trust the criteria, and the process drags on for months. Both are fixable with structure.
1. Define what you are measuring
Group criteria into a few sections, each with a weight:
| Section | Example criteria | Weight |
|---|---|---|
| Results | Targets met, quality of work, deadlines | 50% |
| Skills | Job knowledge, problem solving, communication | 30% |
| Behaviour | Teamwork, ownership, attendance | 20% |
Use the same scale everywhere (for example 0 to 10) and describe what a 3, a 6 and a 9 look like for each criterion.
2. Fix the timeline before you start
- Self-assessment - two weeks. Employees score themselves and list achievements, goals and training needs.
- Manager review - two weeks. Managers score each criterion, with comments on strengths and improvements.
- HR review and calibration - one week. Compare ratings across teams so one generous manager does not skew increments.
- Discussion and closure - one week. Every employee hears their result from their manager.
3. Make the manager review evidence-based
Ask managers to write one concrete example for any score at the extremes. Attendance, work reports and endorsements from colleagues give them material beyond memory of the last month.
4. Calibrate, then link to pay
Agree the rating distribution you expect, review outliers with managers, and only then convert ratings into increments. Publishing the rating-to-increment table makes the outcome predictable.
5. Close the loop
The goals from this cycle become the first criteria of the next one. If nobody looks at them until next year, the process becomes paperwork.