# 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.