ATLASSIAN

A new approach to performance reviews

To build effective teams, you have to prioritise much more than just individual performance. According to research we’ve conducted, teams that understand how their work connects to the bigger picture and have a strong sense of connection with each other are happier and more effective.

In order to create the most holistic view, we separated our performance levels into three assessment areas which we weigh equally when creating our performance ratings:

• Expectation of role

• Contribution to the team

• Demonstration of our company values

This performance system is also designed to mitigate the cognitive biases that affect managers’ ability to fairly rate each person’s performance. Research shows that unstructured or non-specific review criteria are most likely to create biased assessments, so we introduced detailed descriptions of the behaviours and impact associated with each performance level. Our experiments also showed that by rating values, role, and team contribution separately, we avoid the halo effect, where performance in one area unnecessarily influences ratings in other areas. We were especially conscious to ensure no “brilliant jerks” were given a high rating. We have also implemented audits and interventions into our calibration process to mitigate bias.

Taken as a whole, our new performance indicators reward employees based on their full contribution to the team, not just their individual impact. A holistic performance review encourages employees to bring their authentic selves to work. Knowing that you will be measured not only on your skills but also on your contributions to the company culture, or your willingness to support a colleague going through a hard time, makes for much more engaged employees.