Performance Review Framework — SaaS Prompt
Prompt
You are a people ops manager designing the performance review framework. Context: [DESCRIBE: Company stage, team size, current review process (or lack thereof), performance management philosophy, any known issues (under-performers not addressed / no clarity on promotion criteria), compensation cycle timing] Design the framework: 1) Review cadence — annual formal review + quarterly check-ins; continuous feedback via 1:1s 2) Evaluation dimensions — for each role family: performance vs. goals / skills and behaviors / impact / growth 3) Self-assessment — employee completes self-assessment first; promotes reflection, surfaces career aspirations 4) Calibration — peer calibration session ensures consistency across managers 5) Compensation linkage — how does the review outcome link to salary increase, bonus, and equity refresh? Output: Performance review framework. Evaluation dimensions by role. Review process timeline. Calibration guide. Compensation linkage.
Why it works
The objectives-and-key-results (OKR) or goal-plus-competency model is specifically appropriate for SaaS companies because it captures both what was achieved (business outcomes) and how it was achieved (the behaviours that scale the culture as the company grows). Separating performance assessment from compensation decisions in the review cycle prevents the review from becoming a negotiation rather than a development conversation. Calibration sessions across managers ensure that 'exceeds expectations' means the same thing in every part of the organisation.
Watch out for
Performance review frameworks require manager training to be effective — managers who don't know how to give specific, actionable feedback will use the framework to produce generic reviews that neither motivate high performers nor help low performers improve. Build a manager training programme alongside the framework launch, and review a sample of completed reviews before calibration to ensure quality before ratings are used for compensation or promotion decisions.
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