According to McKinsey research, companies that conduct regular performance reviews do four times better than their competitors. And on an individual level, 80 percent of employees who receive regular feedback report feeling engaged at work.
So, how can your company get performance reviews right?
We caught up with three Austin tech companies, whose employees shared how their performance reviews have positively impacted their careers and team culture.
Favor Delivery is a platform that provides on-demand delivery services for a variety of goods, including food, groceries and retail items.
Give us a snapshot of your performance review process. How often do they occur? Who is involved in the process?
At Favor, our performance review cycle includes two phases throughout the year. We conduct our annual 360-degree performance assessment in the spring and midyear check-ins in the fall.
In the spring, every team member at Favor is involved in the 360-degree performance assessment, including our executive team. During this time, team members participate in peer-to-peer feedback, upward manager feedback, self-reviews and manager-to-direct report feedback. To ensure equity and best practices across all teams throughout this process, we host training sessions for team members and leaders pre-review cycle along with calibration meetings post-review cycle. Additionally, people operations business partners work with our leaders during the calibration period to avoid any potential unconscious biases, reach collective alignment and advocate for the development of our team members.
In the fall, about six months after the 360-degree performance assessment, team members are empowered to lead midyear check-ins with their managers. This framework is a direct follow-up to the goals and areas of career development established in the spring.
How does your performance review process ladder up to your organization’s culture and/or mission?
One of the four core values at Favor is to “own your shit,” my personal favorite, and I find that it really speaks to the way we approach a culture of feedback and continuous improvement. Nothing changes if nothing changes, and we take that to heart with the way we’ve designed our performance assessment process. If we’re meant to stay authentic to all of our values (community first, good vibes, own your shit, keep running), we must have the courage to hold ourselves and each other accountable in a way that inspires us to keep growing. Opening ourselves up to multiple perspectives in the 360-degree framework, including feedback questions aligned with our core values and competencies, lets us paint a full picture of where everyone succeeds and where everyone can grow.
What kinds of positive results do you see from your performance review process?
The collaborative nature of our overall annual performance assessment offers us the ability to quickly and effectively provide developmental support to our team members and also allows us to advocate for career growth and movement in partnership with leaders. We’ve received the most positive feedback about our over-communication of resources, training, guidelines and timelines, but we balance that with an openness to feedback to help improve our process for the following year. A recent example of feedback we received was in regard to our timeline, as our review writing period stretches into March (spring break — a potential nightmare for family schedules).
When we started to hear about the strain our review timeline was putting on our team members in and outside of work, we made the decision to adjust our deadlines and timelines the following year to ensure that everybody had the energy to write and reflect without having to sacrifice family holidays or daycare schedules. Our goal is to always meet team members where they are and to evolve with the needs of the business so that everyone has the opportunity to succeed.
LogicMonitor provides IT and business teams visibility and predictability across on-prem and multi-cloud environments.
Give us a snapshot of your performance review process. How often do they occur? Who is involved in the process?
At LogicMonitor, we have a performance culture that’s aligned to our company values. Two of the most important are “better every day” and “one team.” Performance isn’t something we check once a year; it’s part of how we work. We’ve built a culture of feedback so employees always know where they stand, can keep getting better every day and thrive as one team.
We do quarterly check-ins on progress, development and alignment, and a formal annual review to look back holistically. Peer input is included when it adds perspective. That review includes an employee self-assessment, manager evaluation and always a live conversation to align on strengths, opportunities and next steps.
How does your performance review process ladder up to your organization’s culture and/or mission?
We use our company V2M2 framework: vision, values, methods and measures so every employee can see how their work connects to the bigger strategy. Each employee has their own V2M2 that ladders up to their function, which then rolls into the company-level V2M2.
We’re also a pay-for-performance culture. High performers earn differentiated rewards and opportunities, while employees who are still developing get clear coaching and support. That balance keeps people focused, motivated and aligned as one team.
What kinds of positive results do you see from your performance review process?
We see lots of momentum! Reviews give people clarity and direction. We also see it in the data, as we consistently earn high ESAT scores on management, reflecting the trust employees have in their managers and in the process.
We’re strong proponents of internal mobility, and reviews often spark conversations that lead employees to take on new roles and opportunities within the company.
Invoice Home is a billing and invoice service for small businesses and freelancers, providing them with easy-to-use templates.
Give us a snapshot of your performance review process. How often do they occur? Who is involved in the process?
Performance reviews are conducted semiannually. Employees are responsible for setting at least three personal goals each quarter, which are then discussed during the performance review. During the review, our CEO will ask us about the status of our goals, if we had any challenges while completing them and what we plan on working on in the future. Additionally, he asks for our honest feedback on the company as a whole.
How does your performance review process ladder up to your organization’s culture and/or mission?
Our performance reviews align seamlessly with the company culture, feeling less like a chore and more like a casual chat with our CEO. They prioritize friendly conversation over rigid evaluations.
What kinds of positive results do you see from your performance review process?
I thrive on feedback from colleagues at all levels, especially from our CEO. Direct feedback from him is invaluable, enabling me to adjust my course or confirm I’m on the right track. A significant bonus of these performance reviews has been consistent wage increases, which greatly benefit my personal life and boost my motivation. I also appreciate the personal conversations with our CEO. His willingness to dedicate time to individual meetings, despite his demanding schedule, demonstrates his genuine care for the team and our well-being, which is incredibly motivating.
