Performance Management Policy¶

Policy Status: "Draft"

This policy is currently "draft".

Policy ID: HR-009 Version: 1.0 Status: Draft Effective Date: January 15, 2025 Last Reviewed: January 9, 2025

Purpose¶

This policy establishes a framework for managing employee performance, conducting performance reviews, addressing performance issues, and supporting professional development at Acme Corp.

Scope¶

This policy applies to all employees. Specific timing and processes may vary by role and department.

Performance Management Philosophy¶

Acme Corp believes that: - Clear expectations lead to better performance - Regular feedback is essential for growth - Performance management is an ongoing process, not just an annual event - Development and accountability go hand-in-hand - Managers and employees share responsibility for performance

Goal Setting¶

Annual Goals¶

Timing: Established at beginning of each year or upon hire

SMART Goals: - Specific: Clear and well-defined - Measurable: Quantifiable success criteria - Achievable: Realistic and attainable - Relevant: Aligned with company/department objectives - Time-bound: Clear deadlines and milestones

Types of Goals: - Performance Goals: Job-specific outcomes and deliverables - Development Goals: Skills to develop, knowledge to gain - Behavioral Goals: Competencies and values alignment

Goal Alignment: - Individual goals align with department goals - Department goals align with company strategic objectives - Cascading goals ensure organization-wide alignment

Ongoing Goal Management¶

Review goals quarterly or as business needs change
Adjust goals when priorities shift
Add new goals as opportunities arise
Document goal changes with manager approval

Performance Reviews¶

Review Schedule¶

New Employees: - [30/60/90] day check-ins during probationary period - Focus on: Onboarding progress, initial performance, cultural fit - Identify: Training needs, areas for support

All Employees: - Annual Performance Review: Comprehensive evaluation each [month/date] - Mid-Year Review: Progress check-in at [6-month] mark - Ongoing 1-on-1s: Weekly or bi-weekly manager meetings

Annual Performance Review Process¶

Timeline: 1. Self-Assessment: Employee completes self-evaluation 2. Manager Evaluation: Manager completes performance evaluation 3. Calibration: Management team discusses ratings (if applicable) 4. Review Meeting: Manager and employee discuss performance 5. Goal Setting: Establish goals for next review period 6. Documentation: Signed review filed in personnel record

Evaluation Criteria:

Performance rated on: - Job Knowledge: Understanding of role, technical/functional expertise - Quality of Work: Accuracy, thoroughness, attention to detail - Productivity: Output, efficiency, meeting deadlines - Communication: Clarity, listening, written/verbal skills - Teamwork: Collaboration, helping others, positive attitude - Initiative: Proactivity, problem-solving, innovation - Adaptability: Flexibility, handling change, learning agility - Attendance: Reliability, punctuality, availability - Policy Compliance: Following company policies and procedures - Goal Achievement: Progress toward annual goals

Rating Scale:

5 - Exceptional: Far exceeds expectations, outstanding performance
4 - Exceeds Expectations: Consistently performs above requirements
3 - Meets Expectations: Solid, reliable performance meeting all requirements
2 - Needs Improvement: Performance below expectations, improvement needed
1 - Unsatisfactory: Performance significantly below expectations, immediate action required

Review Meeting¶

Manager Preparation: - Review goals and accomplishments - Gather examples (specific situations) - Review previous reviews and feedback - Prepare constructive feedback - Consider development opportunities

Employee Preparation: - Complete self-assessment thoughtfully - Document accomplishments and challenges - Prepare questions and discussion topics - Consider career development interests

During Meeting: - Discuss performance in each area - Review specific examples and situations - Discuss rating and rationale - Listen to employee perspective - Identify strengths to leverage - Address areas for improvement - Set goals for next period - Discuss development opportunities - Answer questions

After Meeting: - Employee signs review (signature = acknowledgment, not agreement) - Employee may add written comments - Manager files in personnel system - Follow up on action items discussed

Ongoing Feedback & Coaching¶

Continuous Feedback¶

Regular 1-on-1 Meetings: - Frequency: [Weekly/Bi-weekly] - Duration: [30-60] minutes - Discussion topics: - Progress on goals and projects - Challenges and obstacles - Support needed - Development opportunities - Team/company updates

Real-Time Feedback: - Provide feedback as situations occur - Both positive recognition and constructive feedback - Specific, timely, and actionable - Focus on behaviors and outcomes, not personality

Coaching for Success¶

Manager Responsibilities: - Set clear expectations - Provide necessary resources and tools - Remove obstacles to success - Recognize good performance - Address performance issues promptly - Support professional development - Model desired behaviors and values

Employee Responsibilities: - Understand job expectations and goals - Ask for help when needed - Communicate challenges proactively - Act on feedback received - Take ownership of performance - Pursue development opportunities

Addressing Performance Issues¶

Performance Concerns¶

Early Intervention: When performance concerns arise: 1. Address issue promptly (don't wait for annual review) 2. Document specific examples 3. Have direct conversation with employee 4. Clarify expectations 5. Identify root causes 6. Provide support and resources 7. Set improvement timeline 8. Follow up regularly

Performance Improvement Plan (PIP)¶

When Used: - Performance consistently below expectations - Specific performance deficiencies identified - Previous coaching has not resulted in improvement - Clear improvement needed to meet job requirements

PIP Components:

Performance Deficiencies: Specific areas where performance is lacking
Performance Expectations: Clear standards that must be met
Improvement Goals: Measurable objectives to achieve
Action Steps: Specific actions employee will take
Support Provided: Resources, training, coaching manager will provide
Timeline: Duration of PIP (typically [30/60/90] days)
Check-in Schedule: Weekly or bi-weekly progress meetings
Consequences: Outcomes if performance improves vs. doesn't improve

PIP Process:

Development: Manager and HR create PIP
Meeting: Present PIP to employee, discuss expectations
Agreement: Employee signs PIP (acknowledges receipt)
Execution: Employee works on improvement, manager provides support
Check-ins: Regular meetings to discuss progress
Documentation: Manager documents progress (or lack thereof)
Conclusion: At end of PIP period:
Successful: Performance meets expectations, PIP concluded, employee remains employed
Partial Success: PIP extended with modified goals
Unsuccessful: Performance still deficient, termination or demotion

Important Notes: - PIP is an opportunity to improve, not a punishment - Employee must meet ALL improvement goals to successfully complete PIP - Company may skip PIP for serious misconduct or policy violations - Being on PIP may affect eligibility for raises, bonuses, or promotions

Professional Development¶

Development Planning¶

Individual Development Plan (IDP): - Created during annual review or separately - Identifies: Skills to develop, career interests, learning goals - Includes: Specific development activities and timeline - Reviewed and updated regularly

Development Activities: - On-the-job learning and stretch assignments - Job shadowing or cross-training - Mentoring programs - Internal training programs - External courses and conferences - Online learning platforms - Professional certifications - Degree programs (tuition reimbursement if applicable)

Career Development¶

Career Paths: - [Individual contributor track / Management track] - Progression levels with clear competencies - Lateral moves for skill development

Internal Opportunities: - Internal job postings available to all employees - Minimum [6 months] in current role to apply - Manager notification required when applying - Equal consideration with external candidates

Succession Planning: - Key positions have identified successors - High-potential employees receive development opportunities - Succession plans reviewed annually

Promotions & Job Changes¶

Promotions¶

Eligibility Criteria: - Meets all requirements for new role - Demonstrated strong performance in current role (typically "Exceeds" or "Exceptional" rating) - Minimum [6-12 months] in current position - Requisite skills and competencies for new role - No active performance improvement plan - No recent disciplinary action

Promotion Process: 1. Position becomes available or is created 2. Job posted internally (if applicable) 3. Employee applies or is nominated 4. Interview and selection process 5. Offer extended and accepted 6. Announcement and transition plan 7. Salary increase and title change effective January 1, 2025

Salary Increase: - Promotion includes salary increase - Amount based on: New role's pay range, current salary, budget, performance - Typically [X%] to [Y%] increase or to minimum of new range, whichever is higher

Lateral Transfers¶

Purpose: - Skill development and cross-training - Career exploration - Better role fit - Organizational needs

Requirements: - Minimum [6 months] in current role - Good performance in current role - Manager approval (both current and new manager) - May or may not include salary increase

Demotions¶

Voluntary Demotion: - Employee requests move to lower-level position - May be approved based on business needs - Typically includes salary decrease - Employee acknowledges reduction in pay/responsibilities

Involuntary Demotion: - Used in lieu of termination for performance issues - Last resort before termination - Includes salary decrease to align with new role - Documented with clear expectations for new role

Recognition & Rewards¶

Informal Recognition¶

Verbal praise and thank-you
Team shout-outs in meetings
Email recognition with manager/team copy
Peer recognition programs
Spot bonuses or gift cards (if applicable)

Formal Recognition¶

Performance-Based Compensation: - Annual merit increases based on performance ratings - Performance bonuses (if applicable) - Commission plans (if applicable)

Awards: - Employee of the Month/Quarter/Year - Service anniversary recognition - Achievement awards for specific accomplishments - Team achievement awards

Documentation & Record Keeping¶

Required Documentation¶

Personnel File: - Annual performance reviews - Mid-year reviews (if conducted) - Performance improvement plans - Disciplinary actions - Promotion/transfer documentation - Commendations and awards

Manager's File: - Ongoing feedback notes - 1-on-1 meeting notes - Goal tracking documentation - Performance examples (positive and negative)

Retention: - Active employee records: Maintained throughout employment - Terminated employee records: Retained for 40 years per legal requirements

Confidentiality¶

Performance information is confidential
Shared only on need-to-know basis
Access limited to: Employee, manager, HR, senior leadership (as appropriate)
Not to be discussed with co-workers

Employee Rights & Responsibilities¶

Employee Rights¶

Receive clear job expectations
Regular feedback on performance
Fair and objective evaluation
Opportunity to provide input during review
Add written comments to performance review
Request meeting with HR if concerns about review process
Appeal review rating through [grievance process]

Employee Responsibilities¶

Understand job expectations and goals
Perform job duties to the best of ability
Seek clarification when expectations unclear
Accept and act on feedback
Participate honestly in performance discussions
Take ownership of development
Meet deadlines and commitments

Manager Responsibilities¶

Set clear, measurable expectations
Provide ongoing feedback and coaching
Conduct timely performance reviews
Document performance (both positive and negative)
Address performance issues promptly
Recognize and reward good performance
Support employee development
Ensure fair and consistent evaluations
Maintain confidentiality
Partner with HR on performance issues

Questions¶

For questions about this policy: - Performance review process: Your manager - HR policies and procedures: hr@acmecorp.com - Career development: Your manager or hr@acmecorp.com

Revision History¶

Version	Date	Author	Description
1.0	2025-01-09	HR Team	Initial draft policy

Policy Owner: HR Team Contact: hr@acmecorp.com