Performance reviews are often a long, daunting process for HR leaders and managers alike. But when they’re not implemented with the right structure and intention, they could harm your DEI efforts.
Research consistently shows that some employee populations are more likely to experience unconscious bias during performance reviews — including women, people with physical disabilities, and neurodivergent folks.
So how do you build the most inclusive performance review process?
To create an inclusive performance review process, use structured criteria, conduct frequent reviews, provide clear feedback, encourage dialogue, separate performance from compensation, use objective data, train managers, monitor ratings, and promote fairness and transparency for all employees.
Now, let's head on to the performance review blunders that can cost your organization -
We asked Abby Matthews, Lead People Partner at legaltech Juro, to walk us through 5 common performance review mistakes — and what to do instead.
“I don’t think I’m alone when I say that most people don’t like performance reviews,” laughs Abby. “One of the main reasons is because everyone does performance reviews differently — even at an organizational level.”
A 2019 meta-analysis found that employees are more likely to view the process favorably when they understand how they’re being evaluated, and they believe their supervisors are unbiased and fair. This tells us that in order to eliminate unconscious bias, organizations must follow a structured process that evaluates every employees’ performance by the same criteria. Measurement and metrics are key to making this work.
“The most important thing to keeping performance reviews structured is consistency,” Abby says. “You need measurable data that shows progress, not subjective statements about what someone did or didn’t do well. Data is the foundation of creating a structured performance review process — data is neutral, and helps get rid of bias.”
“One key problem with the traditional performance review process is that organizations tend to do them once or twice a year,” Abby says. “That increases anxiety for the employee because you’re more focused on reflecting on an entire year’s worth of accomplishments. Performance has to be a regular conversation.”
Long performance review cycles can increase the likelihood of recency bias — when a manager evaluates an employee’s performance based on the last few months, rather than in the context of an entire year.
To combat this, Abby suggests that managers hold performance conversations much more frequently to proactively highlight accomplishments and achievements in the flow of work.
Unclear, unspecific feedback makes it difficult for everyone to understand the changes they need to make to improve their performance. But for neurodivergent folks or people with cognitive disabilities, this lack of specificity or clarity can add an extra layer of exclusion.
“The problem with feedback is that if it’s not actionable or relevant, it’s going to be hard for anyone to implement,” Abby says. “Making feedback more inclusive means you need to be specific, timely, and clear — you also need to focus on the future and moving forward, not the past.
“It’s the same when you’re asking for feedback from peers or managers,” Abby adds. “You need to be specific about exactly what you’re asking for feedback on — whether that’s a project, a skill, or a behavior you demonstrated.”
One of the biggest problems about the current performance review process, says Abby, is that organizations view it as a top-down process, rather than a two-way conversation.
“Traditional performance review cycles often create a barrier to having a proper conversation — they’re not designed for the human part of work,” Abby says. “This leaves employees feeling fearful about how their managers are going to rate their performance.
“In reality, it needs to be a two-way conversation. Managers must build trusting, transparent relationships with their direct reports and focus on building a collaborative performance review process where nothing is ever a surprise.”
Pay and performance have always been interconnected — that’s nothing new. But we also know that some identity groups are more likely to experience discrimination and bias in compensation and performance review processes.
Black men, for example, are penalized when negotiating salary during the hiring process. When women have more than one job offer on the table, any attempt to negotiate on the preferred choice is three times more likely to get rejected.
To make performance reviews more inclusive, Abby suggests that organizations decouple pay from performance: “During the performance review, employees are already worried about how their rating might impact their income. To support inclusion and reduce this anxiety, conversations about pay and performance need to be separate. By combining them, there is a high risk of compensation being the main focus and performance being lost. They are both important topics and deserve equal attention.”
In addition, organizations should keep a close eye on data relating to promotion rates, performance ratings, and compensation benchmarks for different employee groups to help identify which groups are most likely to get left behind.
When writing a negative performance review, focus on being constructive and specific. Start with positive aspects of the employee's performance, then address areas needing improvement using concrete examples. Avoid personal criticisms, instead concentrating on job-related issues. Offer clear, actionable steps for improvement and express confidence in the employee's ability to grow. Use a calm, professional tone throughout. Conclude by summarizing key points and outlining a plan for follow-up and support. Remember, the goal is to encourage improvement, not to demoralize.
Now, we will guide you through the art of writing a negative performance review in a way that's constructive and encourages improvement.
When it comes to poor performance evaluation, your choice of words matters significantly. The right language can help employees accept feedback and act on it positively, while harsh criticism can lead to defensiveness or demotivation.
Here are some tips for writing a negative performance review in a positive way:
Also, it's important that your words remain free from unconscious bias. Because some words are proven to have a certain form of bias in those.
When writing a bad review for employee performance, follow this structure:
Here are some poor performance evaluation examples to illustrate this structure:
Start Positively: "David is a reliable and hardworking team member."
Address Areas for Improvement: "However, there have been instances where David hasn't taken initiative on identifying or tackling new problems that arise within his projects. This has occasionally led to delays or required additional support from colleagues."
Provide Action Items: "To help David develop his problem-solving skills, we can encourage him to ask clarifying questions during project briefings and set up regular check-ins to discuss potential roadblocks he might encounter."
Start Positively: "Mary is a valuable asset to the team with her strong technical skills."
Address Areas for Improvement: "However, there have been a few misunderstandings with clients due to unclear communication on project updates and timelines. This has resulted in some client frustration."
Provide Action Items: "To improve communication, we can suggest Mary attend communication skills workshops offered by the company and encourage her to utilize progress reports and clear deadlines when interacting with clients."
Start Positively: "Michael is a highly motivated team member with a strong work ethic."
Address Areas for Improvement: "On a few occasions, Michael hasn't been as receptive to constructive feedback on his work. This has sometimes hindered his ability to improve certain aspects of his deliverables."
Provide Action Items: "To enhance Michael's openness to feedback, we can establish a culture of open communication within the team and encourage him to view feedback as an opportunity for growth and development."
Our honest suggestion about writing performance reviews is that be careful with the use of generative AI. Because our study has found that, generative AI creates biased texts.
When it comes to how to write negative performance review feedback, the delivery is just as important as the content. Here are some tips:
After delivering a poor performance review, it's crucial to:
Mistakes can happen. But it's important that we learn from those. So, here we not only identified the common mistakes that occur in performance reviews, but also we paved the way for providing negative reviews.
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Now, performance reviews are an essential process that keeps your organization moving forward. And as Abby notes, inclusive communication is critical to doing them well and instilling the trust and transparency that fosters belonging.
Find out more about how Develop Diverse can help you build a more inclusive organization by booking a demo here.