Performance Management Policy

2. Scope

This policy applies to:

• All full-time and probation-confirmed employees of the organization.
• All departments, roles, and levels.
• Performance reviews are conducted at regular intervals (quarterly, mid-year, annual), probation evaluations, and ad-hoc performance interventions.

Exclusions: Interns, contractors, and consultants, who are evaluated separately as per project or contract terms.

3. Definitions

• KPI (Key Performance Indicator): Quantifiable measures of performance outcomes aligned to role expectations.
• OKR (Objectives & Key Results): Goal-setting framework linking individual contributions to organizational strategy.
• Performance Review: Structured process of evaluating employee performance against KPIs/OKRs and behavioral expectations.
• PIP (Performance Improvement Plan): A formal plan designed to address performance gaps.
• Calibration: Process to ensure fairness and consistency of ratings across teams and departments.

4. Policy Statements

1. Performance management will be aligned with business strategy and EVP pillars (Growth, Impact, Culture, Rewards, Balance).
2. Reviews will combine quantitative results (KPIs/OKRs) and qualitative factors (skills, behaviors, values).
3. Employees will receive structured feedback and coaching opportunities.
4. Underperformance will be addressed through PIPs before escalation to disciplinary action.
5. High performance will be rewarded through recognition, career advancement, and compensation linkage.
6. All performance data will be stored securely and used only for employment-related decisions.

5. Roles & Responsibilities

• Employees – Set and track goals, engage in feedback discussions, take ownership of development.
• Managers – Define clear expectations, provide continuous feedback, conduct reviews, and recommend actions (rewards/PIP).
• HR – Standardize frameworks (KPI/OKR templates, review cycles), train managers, monitor fairness, and manage system tools.
• Leadership – Ensure alignment with strategy, approve frameworks, and participate in calibration.

6. Performance Review Cycle

7. Performance Improvement Process

• Trigger: Initiated when performance falls below expectations despite feedback.
• Steps:
  1. Manager + HR design a PIP (typically 30–90 days).
  2. PIP includes clear objectives, support actions, and evaluation checkpoints.
  3. Mid-PIP review conducted to assess progress.
  4. At end of PIP, employee is either:
     • Cleared from PIP (improved).
     • Extended (additional support required).
     • Recommended for termination (if no improvement).

8. Recognition & Rewards Linkage

• High performers identified through annual reviews will be eligible for:
  • Promotions and role expansions.
  • Salary increments, bonuses, and incentives.
  • Special recognition programs (awards, spotlight features).
• Recognition decisions must be transparent, documented, and approved through calibration.

9. Governance & Compliance

• Reviews must be bias-free, using structured rubrics and multiple data points.
• HR will monitor for fairness across gender, role, and location.
• Records must be auditable and aligned with the Data Protection & Confidentiality Policy.
• Compliance with applicable labor laws and client requirements (where evaluations impact project staffing).

10. Review & Ownership

• Policy Owner: HR Department.
• Review Cycle: Annually, or earlier if business needs evolve.
• Approval Authority: Head of HR with the Leadership Team.
• Updated versions must be communicated to all employees and stored in the HR Policy Repository.