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📘 Impact-Based Performance Review Guide

 

🎯 Purpose

Establish a structured, equitable, and transparent performance review system that aligns individual contributions with organizational goals, supports employee development, and informs decisions on compensation and promotions.

 

📅 Annual Review Timeline (2025–2026)

  • Q1 & Q3: Comprehensive Performance Reviews
     

  • Q2 & Q4: Light Check-ins​
     

Preparation Period: Initiate the review process 30 days before the end of each quarter.​

Example: For Q2 reviews (covering April–June), begin preparations in June to conduct reviews in July.​

 

💰 Compensation & Promotion Policy

  • Raises & Promotions:
     

    • Eligibility: Minimum once per year, typically every 2–3 years.
       

    • Criteria: Based on individual performance, professional growth, and business needs.​
       

  • Annual Bonus Structure:
     

    • Calculation: 50% based on individual performance rating, 50% on company performance.
       

    • Example: An employee rated 5/5, with the company achieving 80% of its goals, would receive 90% of their target bonus.​
       

 

📝 1. Pre-Review Preparation

Employee Self-Assessment:

  • Document key achievements, challenges, and progress on goals.
     

  • Utilize the provided template from Startup People Solutions.​
     

360° & Peer Feedback:

  • Collect feedback from peers, supervisors, and support staff.
     

  • Include both quantitative ratings and qualitative comments.
     

  • Use standardized templates to ensure consistency.​
     

Manager Preparation:

  • Review self-assessments and peer feedback to identify patterns.
     

  • Customize evaluation forms to reflect key performance indicators and role-specific criteria.​
     

 

🗣️ 2. Conducting the Performance Review Meeting

Setting the Stage:

  • Begin with a welcoming tone to foster open dialogue.
     

  • Outline the agenda: past performance, self-assessment highlights, and feedback results.​
     

Review of Performance Metrics:

  • Discuss quantitative indicators (e.g., client satisfaction, project outcomes).
     

  • Compare actual performance against predefined benchmarks.​
     

Discussion of Self-Assessment & Peer Feedback:

  • Encourage employees to elaborate on their self-assessments.
     

  • Present peer feedback constructively, highlighting strengths and areas for growth.​
     

Strengths, Areas for Improvement & Development:

  • Identify core strengths contributing to success.
     

  • Discuss specific areas for improvement with concrete examples.
     

  • Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for the next cycle.​
     

Career and Professional Growth:

  • Explore opportunities for training, mentorship, or increased responsibilities.
     

  • Discuss potential leadership roles or client management opportunities.​
     

 

✅ 3. Post-Review Follow-Up

Action Plan Documentation:

  • Summarize key discussion points and agreed-upon action items.
     

  • Provide a summary email to the employee, outlining expectations and available support resources.​
     

Regular Check-Ins:

  • Schedule quarterly informal check-ins to monitor progress and adjust plans as needed.
     

  • Use these sessions to provide timely feedback and address emerging challenges.​
     

Ongoing Record-Keeping:

  • Maintain updated records of performance reviews, action plans, and progress notes.
     

  • Ensure documentation supports transparency and aids future evaluations.​
     

Manager Follow-Up:

  • Review employee progress periodically, offering additional coaching or training as necessary.
     

  • Prepare for the next review cycle by revisiting and updating performance benchmarks.
     

 

🌟 4. Best Practices

Training for Reviewers:

  • Provide training on effective communication, active listening, and bias mitigation to ensure fair and constructive feedback.​
     

Focus on Continuous Improvement:

  • Foster a culture of ongoing learning and development, treating reviews as part of a continuous feedback loop rather than isolated events.​
     

 

Implementing this structured approach will help align individual performance with organizational goals, support employee development, and ensure fair and transparent evaluations.​

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If you need assistance customizing templates or further guidance on implementation, feel free to reach out! 

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