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Home/Templates/Onboarding & HR policies/Performance review policy template
Template & guide

Performance review policy template

A performance review policy defining cadence, evaluation criteria, calibration, and outcome bands. Use it to make reviews predictable, fair, and evidence-based.

  • Made forEmployers
  • Reading time~2 min
  • What's includedA complete, professionally written document you can adapt to your team.
Sign up to customize & send

The template

This policy describes how performance reviews work at {{Company name}}: how often they happen, what is evaluated, how ratings are calibrated, and what each outcome band means. Its purpose is to make performance conversations predictable and fair — nothing in a review should be a surprise that was never raised earlier.

Review cadence

  • Formal reviews run {{Review frequency, e.g. twice per year}}, in {{Review months}}.
  • A lightweight check-in happens {{Check-in frequency, e.g. every quarter}} to track goals and surface concerns early.
  • New hires have their first review at the end of the probation period, then join the regular cycle.

What we evaluate

  1. Results — delivery against the goals agreed at the start of the period.
  2. Craft — the quality of the work measured against the expectations of the role and level.
  3. Collaboration — how the work gets done: communication, reliability, and how feedback is given and received.
  4. Growth — progress on the development areas agreed in the previous review.

Each dimension is rated on the shared scale below and must be supported by concrete examples from the period. Ratings without evidence are sent back to the manager.

The process

  1. The employee completes a self-review against the same four dimensions.
  2. The manager drafts a rating with examples, incorporating peer input where the role calls for it.
  3. Draft ratings go through calibration.
  4. Manager and employee hold the review conversation and agree development goals for the next period.
  5. The written summary and final rating are recorded in {{HR system name}}.

Calibration

Before any rating becomes final, managers meet by {{Calibration group, e.g. department}} to compare draft ratings against the same bar. Calibration exists to ensure consistency — the same evidence earns the same rating on every team — and to check for bias in either direction. Final ratings are released only after calibration closes.

Outcome bands

BandWhat it meansTypical outcome
Exceeds expectationsConsistently delivers beyond the bar for the role, with strong evidence.Priority for compensation increases and promotion cases.
Meets expectationsSolid performance against the bar for the role — the expected norm.Standard merit adjustment in the compensation cycle.
Partially meets expectationsGaps in one or more dimensions, with a credible path to close them.Development plan with checkpoints, agreed within {{Number of days, e.g. 15}} days.
Does not meet expectationsA sustained gap the role cannot absorb.Formal improvement plan with a defined timeline and support.

After the review

Goals for the next period are agreed within {{Number of weeks, e.g. two}} weeks of the review conversation. Compensation decisions follow their own cycle: they are informed by ratings but are not automatic. If an employee disagrees with a rating, they may add a written response to the record and escalate to {{Escalation contact, e.g. the HR lead}}.

Not legal advice

This template is provided for general informational purposes only and is not legal advice. Laws differ by jurisdiction and change over time — have a qualified professional review any document before you rely on it.

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