Performance Appraisal Dilemma
The most awaited but scary event for all. But is it ?
Disclaimer: This article does not intend to discuss on specific corporation or startup. The fictional story here is created to answer common issues regarding performance appraisal and help both the leaders and team members to understand what is the principal behind, to overcome the dilemma and hopefully can make everybody accepts the calibration result.
Working in startup or corporation, of course term performance appraisal and performance calibration are nothing new. The awaited moment where the teams performance is being reviewed for bonus and promotion eligibility. And this usually makes both the managers and the team members anxious.
Not without reason, as a person who is being reviewed, as a person who strove hard during the past semester, expecting that our work to be complemented appropriately, of course we are expecting good news by the end of the month.
Leaders on the other hand, usually more care about what will happen to the subordinates they proposed for good ratings and promotion. Will these go through? As leaders, you know exactly how your team members were, you agree how hard they have been working, and that’s why you proposed them for the best rating. But when the unexpected news come, how are you going to tell them ?
Realize the nature of the company
First of all this will be step we need to go through to solve the dilemma. Most of startups and many corporations work on base of high performance culture. These kind of companies usually have higher pay grade level than other similar companies. With an asterisk of course: you are demanded to give your best performance at all time, as the precondition of having above average paycheck every month.
High performance is the new normal
Yes my friend, if you are giving your best performance out there, then you will fall to the main, standard category: meet expectation. Therefore never ever be satisfied with what you have achieved, because this what has been expected by the company at all time from you. Anything less than high performing will be either partly meet, or need improvement. This is the missing mindset that we all need to realize. We need to match our expectation from the company, to what the company expects from us.
Q: If everybody is a star, then how can we become brightest stars ?
There is no easy way to answer this. Out of many stars shining and blinking on the sky, only the few most shiny ones will be picked up as exceptions. These are the very few selected by the company as extra ordinary performers who outbid other high performers. They are usually the people who took more responsibilities than they should, helped others, finished the jobs very effective and efficient, delivered innovations that will cut through company expenses, boosted the earnings, gave substantial impacts internally and to other teams, always apply the company values everywhere, etc. Did you achieve all of these? If you did, then the probability for you to rise may be higher.
Q: I did all those, but I did not get more than meet expectation.
I did say probability, didn’t I? OK, assume I did not mention that, now, you have been performing, according to you or according to company? Let’s take example from doing jogging. Say, John, as a person who rarely do sports, jogging for 3 KM is already exhausting. It also took him 30 minutes to complete the track. John has been striving hard this semester. He practices everyday and now he achieved 4 KM for the same time. What an achievement, John thinks. What John didn’t realize is, Sarah from other team has been doing this distance on daily basis, and now she recently improved to 5 KM.
Q: wait wait, not only according to me. My leader also recognized my performance
Your leader would not know if Sarah out performed you until the calibration process. It is important for everybody to understand the process of performance calibration, therefore I totally encourage us to be open regarding this process to all team members. During first calibration your leader will realize that what Sarah did may be more impactful to the company. Calibrate means to correct the measurement that is being used to determine the top performers. Is 3 KM? Or 5 KM? Or is there anybody completed 6 KM ? Not all people can be put under exceptional category for bonus, and when we talk about promotion candidates, there is even lesser budget and availability. The first calibration finished with Sarah chosen. Will Sarah survives the next round of calibration? Nobody knows — even your general manager will only know this during the calibration with other general manager at later phase.
Q: My company is not open. I never knew who outperformed me or why.
That is what they call “confidential”. The whole process of performance appraisal and calibration is strictly confidential, only known to some leaders, and the leaders may not even tell anybody else the outcome of the meeting.
Q: No open data huh, how can I be assured this whole process is fair?
The other way around, do you have data that prove this whole process is unfair? If you do then I believe you can do proper communication to the HR and discuss where the flaw is.
Q: The flaw is clear. Sarah is closer to our chief. Of course she will be elected.
We should avoid subjective and biased judgement towards others. First of all, both Sarah and you are important people of this company who work together for greater good. You get meet expectation means you are recognized as high performer. When the chief knows Sarah more than you — did you ever think, what is the reason? Most likely achievement from Sarah may be more impactful so that it is heard by the upper management. Therefore why can’t you make something more extraordinary ?
Q: I have been working hard, but I fell under partly meet expectation? What happened?
When there is somebody working poorly, the category may fall to them. But when everybody is high performing, then the least performing from all high performers may unfortunately need to improve more. The standard may shift due to calibration. This is a normal setup under high performance culture company. I am truly sorry if you experience this situation, but perhaps you may need to start looking around you, how is everybody doing, and how they are doing better. Start discussing with your leader on plan for improvements, then execute them properly.
Q: Man.. I have been working here for two years already and nobody recognized my performance, I couldn’t even mention promotion. I shall file my resignation.
First of all I feel empathy to you. But I need you to realize that you have been staying here means the company actually recognized your contribution as high performer. Otherwise you would have already received a striking love letter. There are many ways to learn while we are working. Technical skill is one thing, and we can try to develop our soft skills too. Learn from your team mates, from your leaders and from other teams. If you haven’t read my other article about Ikigai (https://hariesef.medium.com/ikigai-8f8672bf4f8b), then I propose you to read as well. Life is not only about working and searching for as much money as possible. But to also ensure that what we are doing is basically meaningful to society. Is the company you are working for, giving positive impact to the nation? Nobody would hinder you from searching for better opportunity, but if I may suggest, do it when you have nothing else to learn in this company.
Q: Yeah sorry, but I am only after promotion.
We are sorry to let great talents like you go because of this reason. However something that many people missed out regarding promotion: it is not happening because you are performing well. Your ultra performance is only one of many requirements for the promotion. As a person entitled to go on next grade you need to meet many qualifications, both technical and non technical. You also need to prove you have been holding the company values in all aspects. Do you have them? Even if you have all that, promotion is tightly coupled with budget and open position. Not everybody can have that. Promotion is not something that we can control. What we can do now, do our best, learn a lot, and help often. It will eventually come to those who survive and become better. BTW in other company won’t you meet same situation? Performance calibration is pretty standard nowadays every where.
Q: Uhmm after second thought let me stay here for a while.
Welcome back! 😙 Let us discuss on how you can achieve more while being here, so that we can increase your probability to fulfill your dream.
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Thank you for reading 🍻
