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5 min read

Running a fair performance appraisal cycle

A simple structure for goals, feedback, ratings, and calibration that employees trust.

Benefits

  • Fair, transparent ratings employees trust.
  • Clearer goals and better feedback conversations.
  • Stronger link between performance, growth, and pay.
  • Higher engagement and retention.

Part 1

Set goals early

  • Agree a small number of measurable goals at the start of the cycle.
  • Tie each goal to a team or company outcome so it is clear why it matters.
  • Revisit goals mid-year and change them when priorities change.

Part 2

Gather balanced input

  • Combine a self-review with the manager review.
  • Add peer or stakeholder feedback where the work crosses teams.
  • Base comments on specific examples, not impressions of the last few weeks.

Part 3

Rate consistently

Use a rating scale with written definitions for each level, and calibrate across managers so that the same performance gets a similar rating in different teams.

Part 4

Hold a good conversation

  • Share the outcome in a private one-to-one, not by email alone.
  • Lead with strengths, be specific about gaps, and agree on next steps.
  • Link the result to development plans, promotions, and pay revisions transparently.

Part 5

Close the loop

Record outcomes, let employees acknowledge them, and offer a route to raise concerns. An appraisal that ends in a conversation and a plan builds more trust than a perfect form.

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