Performance Review Cycle SOP

1. Purpose

This SOP defines the process for conducting structured performance reviews at regular intervals. It ensures that employee performance is evaluated fairly, aligned with organizational objectives, and used to drive development, recognition, and corrective actions.

Outcome:

Provides employees with clarity, feedback, and growth opportunities, while enabling the organization to make informed decisions on promotions, rewards, and role alignment.


2. Scope

This SOP applies to:

  • All confirmed employees across all departments and levels.
  • Review cycles: Quarterly Check-ins, Mid-Year Reviews, and Annual Appraisals.
  • Inputs from managers, employees, peers (where applicable), and HR.

Exclusions: Probationers (covered under Probation & Confirmation Policy) and interns/contractors.


3. Roles & Responsibilities

RoleResponsibilities
EmployeePrepare self-assessment, align progress against goals/KRAs, participate actively in review meetings.
ManagerProvide structured feedback, evaluate performance fairly, recommend outcomes (rewards/PIP), guide development.
HRCoordinate review cycles, provide templates/tools, track completion, ensure consistency, facilitate calibration.
LeadershipOversee calibration, approve final ratings/outcomes, ensure alignment with strategy and fairness across teams.

4. Review Cycle Framework

Cycle StageTimelineOwnerActivitiesOutputs
Goal SettingStart of FY/QuarterEmployee + ManagerDefine SMART goals/KRAs (as per Goal Setting SOP).Approved Goal Sheet
Quarterly Check-inEnd of each quarterManager + EmployeeInformal but documented discussion on progress, blockers, and adjustments.Check-in Notes
Mid-Year ReviewHalfway through cycleManager + HRFormal evaluation, feedback session, development planning.Mid-Year Review Form
Annual ReviewEnd of FYManager + Employee + HRComprehensive review of goals/KRAs, behaviors, and EVP alignment.Final Review Form, Performance Rating
CalibrationPost annual reviewHR + LeadershipNormalize ratings across teams to ensure fairness and reduce bias.Calibrated Ratings
Rewards & Development ActionsAfter calibrationHR + LeadershipApply increments, bonuses, promotions, or PIPs.Reward Letters, PIP Plans

5. Review Guidelines

  1. Consistency: All employees must undergo reviews as per the defined cycle.
  2. Evidence-Based: Reviews must be supported with data (KPI results, project outcomes, feedback notes).
  3. Balanced Feedback: Must include achievements, strengths, and areas of improvement.
  4. Two-Way Dialogue: Reviews are collaborative, not one-sided evaluations.
  5. EVP Alignment: Reviews should reflect employee contributions to Growth, Impact, Culture, Rewards, and Balance.

6. Tools & Templates

  • Performance Review Form (self-assessment + manager evaluation).
  • Calibration Dashboard (for HR to track scores/ratings across teams).
  • Review Tracker (HR monitoring tool).

7. Compliance & Monitoring

  • HR ensures 100% completion of all reviews within defined timelines.
  • Incomplete or delayed reviews will be escalated to Department Heads.
  • Annual audits ensure consistency of ratings across gender, role, and location.

8. Review & Ownership

  • SOP Owner: HR Department.
  • Review Cycle: Annual (aligned with performance cycle).
  • Approval Authority: Head of HR and Leadership Team.
  • The latest version must be stored in the HR Policy Repository.