4.1 Design and implement a fair and unbiased employee performance management and appraisal system and process
Content
Description of Best Practices
Develop structure and process for a fair and unbiased performance management[1] and appraisal system
If such system already in place evaluate for potential bias e.g., by analyzing ratings given to male and female employees, analyzing quality of targets assigned to male and female employees and evaluating feedback from male and female employees to their supervisors
Determine the root cause of the bias and develop corrective action based on the root cause
Include gender parity or diversity and inclusion targets and key performance indicators for managers
A good quality performance management process and system include:
- Transparent process of target setting in the beginning of the performance period (targets for each employee visible to HR)
- Good mix of individual targets and targets, which are linked to overall business performance of the company
- Individual learning targets for each employee
- Logged performance talks on a regular basis, at least once in the middle of the performance evaluation period) and opportunity to adjust targets if new competing priorities came up
- Logged appraisal talk at the end of the performance period, in which manager and employee provide feedback to each other and new learning targets are set
- Handbooks or trainings for managers on how to set targets, provide feedback and lead appraisal talks
Challenges of Implementation
Establishing a high-quality performance management system requires time and resources
Human Resources Department access to performance agreements and reviews not granted due to non-transparent process
Performance targets for the organization not monitored
Managers setting targets do so inconsistently and with varying quality
Pressure to use business performance metrics that the individual employee cannot influence may create frustration
The performance management system may be prone to systematic bias when ratings impact a pay raise. For example, all ratings are at the top of the scale, so all employees receive maximum raise
What Success Looks Like
Performance ratings accurately assess the performance of each individual employee and are used for development of the employee
Managers are fully trained on how to assess and rate performance
Employees feel empowered to actively plan and perform
Employees feel motivated and engaged to contribute to business targets
Women and men can equally reach high performance scores
Resources and Tools
Guide (incl. Checklists and Training Guide): Supervising in a Box Series: Performance Review/Talent Management (NCWIT)
Guide: Tailoring Organizational Practices to Achieve Gender Equality: A Best Practice Guide (Chapter 2: Performance Management) (Gender Equality in Decision-Making, GEM)
Guide: The Managers Guide to Effective Feedback (impraise)
Report/Study: Breaking Barriers: Unconscious Bias in The Workplace (ILO)
Article: Women are given Feedback that is likely to slow down their Progression to Senior Roles (Loughborough University)
Article: How Performance Reviews are reinforcing Gender Bias: 5 Steps to fight against it (impraise)
Article: How Gender Bias corrupts Performance Reviews, and What to Do about It (Harvard Business Review)
Article: 4 Unconscious Biases that Distort Performance Reviews (Entrepreneur)
Article: The Performance Management Revolution (Harvard Business Review)
Article: The Fairness Factor in Performance Management (McKinsey & Company)
[1] PERFORMANCE MANAGEMENT. Process of maintaining or improving employee job performance through the use of performance assessment tools, coaching and counseling as well as providing continuous feedback. (Source: Society for Human Resource Management, Glossary of Human Resources Management Terms)