synthetic_policies/performance_review_process.md

HR-POL-005: Performance Review Process

Effective Date: 2025-03-01 Revision: 1.1 Owner: Human Resources

1. Purpose and Philosophy

This document outlines the process for performance reviews at Innovate Inc. Our philosophy is that performance management is a continuous cycle of setting goals, providing feedback, and evaluating performance. This process is designed to foster employee growth, provide constructive feedback, and align individual performance with company objectives.

2. Review Cycle

Performance reviews are conducted on a semi-annual basis:

• Mid-Year Review: Held in July, this is a less formal check-in focusing on progress toward annual goals and professional development.
• Annual Review: Held in January, this is a comprehensive review of the past year's performance and is used to inform compensation and promotion decisions. It includes setting goals for the upcoming year.

3. Assessment Criteria

Employees are assessed on three main areas:

1. Job Competencies: Role-specific skills, knowledge, and the quality and quantity of work produced.
2. Performance Against Goals: Achievement of the specific, measurable goals (OKRs) that were set at the beginning of the review period.
3. Alignment with Company Values: Demonstration of Innovate Inc.'s core values (Integrity, Collaboration, Innovation, Customer-Centricity, Accountability) in day-to-day work.

4. Scoring Methodology

A 5-point rating scale is used for each assessment area:

• 1 - Needs Improvement: Performance is consistently below the standards required for the role. A Performance Improvement Plan (PIP) may be initiated.
• 2 - Developing: Performance is sometimes below expectations, and improvement is needed in specific areas.
• 3 - Meets Expectations: Performance consistently meets and occasionally exceeds the standards of the role. This is the expected level for most employees.
• 4 - Exceeds Expectations: Performance consistently exceeds all standards of the role.
• 5 - Outstanding: Performance is consistently exceptional and serves as a model for others.

An overall score of "Meets Expectations" (3) or higher is required to be eligible for annual bonuses and consideration for promotion.

5. The Performance Review Process

The process is designed to be a collaborative two-way conversation.

1. Notification: HR will notify employees and managers one month before the review cycle begins.
2. Self-Assessment: The employee completes a self-assessment form in our HRIS platform, reflecting on their accomplishments, challenges, and contributions.
3. Manager Review: The manager reviews the employee's self-assessment, gathers feedback from peers (360-degree feedback where applicable), and prepares their own written assessment.
4. Review Meeting: A one-on-one meeting is held between the employee and manager to discuss the assessments, provide feedback, and have a constructive dialogue about performance and career development.
5. Goal Setting: New goals for the next review cycle are collaboratively set and documented in the HRIS.
6. Finalization: The review is finalized and electronically signed by both the employee and manager. The employee has the option to add comments.

6. Post-Review Actions

• Recognition: High-performing employees may be recognized through bonuses or other rewards.
• Development Plans: For employees who are "Developing" or "Need Improvement," the manager will work with them to create a development plan.
• Promotions: The outcomes of the annual review are a key input for the promotion process, as detailed in the Promotion and Advancement Policy (HR-POL-006).

7. Related Policies

• Promotion and Advancement Policy (HR-POL-006)
• Employee Handbook (HR-POL-001)

8. Revision History

• v1.1 (2025-10-12): Added philosophy, more detail on scoring, and post-review actions.
• v1.0 (2025-03-01): Initial version.