Performance Review SOP for Healthcare & Allied Health

# Performance Review SOP - Healthcare & Allied Health

## Purpose
Follow to ensure all managers conduct performance reviews to the same standard, reducing bias and improving employee development.

## When to Use
A procedure for conducting fair, consistent performance reviews including preparation steps, conversation guides, documentation, and follow-up actions.

## Instructions
1. Review the template below and familiarise yourself with the structure
2. Replace all [bracketed placeholders] with your healthcare & allied health business details
3. Customise the tone and formatting to match your brand
4. Save in your preferred tool (Employment Hero or Notion)

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## Performance Review Standard Operating Procedure

### 1. Purpose and Scope
This SOP defines the standard procedure for conducting fair, consistent, and meaningful performance reviews. Well-executed reviews improve employee engagement, reduce turnover, and align individual performance with business goals. This procedure applies to all managers conducting reviews for their direct reports and covers the preparation, conversation, documentation, and follow-up stages.

### 2. Roles and Responsibilities
- **HR Manager:** Coordinates the review cycle, provides training to managers, calibrates ratings, and maintains records in Employment Hero.
- **Reviewing Manager:** Prepares for and conducts the review, documents outcomes, and follows up on development actions.
- **Employee:** Completes the self-assessment, participates actively in the review conversation, and takes ownership of their development goals.
- **Director:** Participates in calibration sessions and approves any compensation changes resulting from reviews.

### 3. Prerequisites
- Employment Hero configured with performance review templates
- Self-assessment forms distributed to all employees
- Review schedule published with confirmed dates
- Managers have completed performance review training (annual refresher)

### 4. Performance Rating Scale

| Rating | Description |
|--------|-------------|
| 5 - Exceptional | Consistently exceeds expectations, delivers outstanding results, role model for the team |
| 4 - Exceeds | Frequently exceeds expectations, strong contributor, growing capability |
| 3 - Meets | Consistently meets expectations, reliable performer, developing in role |
| 2 - Developing | Partially meets expectations, improvement needed in specific areas |
| 1 - Below | Does not meet expectations, formal performance plan required |

### 5. Procedure

**Step 1: Gather Evidence (Owner: Reviewing Manager, Timeline: 2 weeks before review)**
Collect performance data from multiple sources:
- Review the employee's goals from the previous period and assess completion
- Gather project outcomes, client feedback, and quality metrics where available
- Review the employee's self-assessment (submitted via Employment Hero)
- Read peer feedback (collected during the 360-degree feedback process)
- Review any notes from one-on-one meetings throughout the period
- Check attendance and any HR records (formal warnings, commendations)

Avoid recency bias by reviewing the full review period, not just the last few weeks.

**Step 2: Prepare Your Assessment (Owner: Reviewing Manager, Timeline: 1 week before review)**
Complete the manager's section of the review form in Employment Hero:
- Rate performance against each goal or competency area
- Write specific, evidence-based comments for each rating
- Prepare 2-3 specific strengths to recognise
- Identify 1-2 development areas with concrete examples
- Draft 3-5 proposed goals for the next period (SMART format)
- Consider whether a compensation change is warranted and prepare your recommendation

**Step 3: Set the Environment (Owner: Reviewing Manager, Timeline: Day of review)**
- Book a private meeting room (or ensure a private Zoom call with video on)
- Allow 45-60 minutes uninterrupted
- Remove distractions (phone on silent, laptop closed unless referencing notes)
- Have the review form, self-assessment, and peer feedback accessible

**Step 4: Conduct the Review Conversation**
Follow this structure:

**Opening (5 minutes):** Set a positive, open tone. Explain the structure of the conversation. Emphasise that this is a two-way discussion.

**Self-Reflection (10 minutes):** Ask the employee to share their perspective: What are they most proud of? Where did they struggle? What support do they need? Listen actively and take notes.

**Manager Feedback (15 minutes):** Share your assessment, leading with strengths. For development areas, use the SBI framework:
- **Situation:** When and where you observed the behaviour
- **Behaviour:** What specifically the person did
- **Impact:** What effect the behaviour had

Avoid generalisations ("You always..." or "You never..."). Use specific examples.

**Discussion (10 minutes):** Invite the employee's response. Listen to their perspective. Discuss any areas of disagreement respectfully. Seek to understand their view before reaching an agreed rating.

**Goal Setting (10 minutes):** Present the proposed goals for the next period. Discuss and refine together. Each goal should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.

**Closing (5 minutes):** Summarise key points, confirm agreed actions, and discuss what support the employee needs. Thank them for their contribution. Confirm when they will receive the documented review for acknowledgement.

**Step 5: Document the Review (Owner: Reviewing Manager, Timeline: Within 2 business days)**
Finalise the review form in Employment Hero:
- Final ratings for each area with supporting comments
- Overall performance rating
- Key strengths recognised
- Development areas with specific improvement actions
- Agreed goals for the next period
- Any development support or training agreed (courses, mentoring, stretch projects)
- Compensation recommendation (if applicable)

Submit for the employee's review and acknowledgement.

**Step 6: Employee Acknowledgement (Owner: Employee, Timeline: Within 5 business days)**
The employee reviews the documented review in Employment Hero and either acknowledges or adds comments. Acknowledgement confirms the employee has read the review, not necessarily that they agree with every point. Disagreements should be noted in the comments.

**Step 7: Follow Through (Owner: Reviewing Manager, Timeline: Ongoing)**
- Discuss progress against new goals in regular one-on-one meetings
- Arrange any agreed training or development opportunities within 30 days
- If a formal performance improvement plan is needed (rating of 1 or 2), work with HR to implement within 2 weeks of the review

### 6. Common Biases to Avoid
- **Recency bias:** Overweighting recent events
- **Halo/horn effect:** Letting one strong trait influence overall rating
- **Central tendency:** Rating everyone as "Meets expectations" to avoid difficult conversations
- **Similarity bias:** Favouring people who are similar to you

### 7. Revision History
| Version | Date | Author | Changes |
|---------|------|--------|---------|
| 1.0 | [Date] | [Author] | Initial release |

### 8. Related Documents
- Self-Assessment Form Template
- Peer Feedback Form Template
- SMART Goal Setting Guide
- Performance Improvement Plan Template
- Compensation Review Guidelines

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**Complexity:** intermediate | **Setup time:** 20 minutes | **Tools:** Employment Hero, Notion, Slack

Note: This template has been tailored for healthcare & allied health businesses in Australia. Adjust terminology and compliance references to match your specific context.