A few years after introducing a new performance evaluation and compensation system, employees expressed concerns about fairness and transparency. Managers also voiced uncertainty about how to ensure their teams felt satisfied and aligned with the evaluation process.

Rather than redesigning the system itself, which could cause confusion, the focus was placed on improving how it was applied. The aim was to maximize the value of the existing framework while increasing employees’ sense of acceptance and fairness.

• Introducing Evaluation Calibration
  Department heads and managers began holding calibration sessions to align evaluation standards and ensure fairness across teams.
  
  
• Improving Goal-Setting Practices
  Initial reviews revealed that goals were overly focused on numbers, which made it difficult to evaluate behaviors and actions. Managers introduced alignment meetings at the goal-setting stage to make objectives more balanced, measurable, and fair.
  
  
• Increasing Transparency in Promotion Decisions
  Promotion decisions, previously submitted by individual supervisors, were moved to executive-level promotion meetings. This added clarity and transparency to the process.

• Calibration sessions enabled managers to reflect on their own evaluation tendencies and align with a shared organizational standard.
• The discussions evolved into a platform for sharing management challenges and best practices across departments.
• Topics such as how to deliver feedback effectively, how to maintain motivation for both high and low performers, and how to develop high-potential employees without causing burnout were openly addressed, leading to clear, actionable practices.

• Many managers appreciated the opportunity to discuss not only evaluation, but also how to manage underperforming employees or support promotion candidates more effectively.
• Even managers who were initially reluctant to join calibration sessions found value in learning from others’ perspectives. They recognized their own evaluation biases and became more aware of assumptions shaped by their personal experiences.

Starting with department-level initiatives, managers gained a deeper understanding of the evaluation process and improved fairness. The next step is to expand calibration to the executive level across the entire organization, integrating it with succession planning and reviewing the compensation system on a company-wide scale.