How do you handle rating inflation or deflation among managers and employees?

1 Define clear and specific competencies

The first step to avoid rating inflation or deflation is to define what you expect from your managers in terms of skills, behaviors, and outcomes. You should have a clear and specific set of competencies that reflect your organizational values, culture, and strategy. These competencies should be communicated to your managers and employees, and used as the basis for setting goals, providing feedback, and evaluating performance.

2 Use a standardized rating scale

The second step to avoid rating inflation or deflation is to use a standardized rating scale that applies to all managers and employees. This tool helps measure and compare performance across different levels, roles, and functions. A good rating scale should have a clear and consistent meaning for each rating level, a balanced distribution of ratings, and clear and objective criteria for assigning ratings. For example, the criteria could be observable behaviors, measurable results, or feedback from multiple sources. Additionally, most managers and employees should fall within the middle range, and only a few should receive the highest or lowest ratings.

3 Calibrate your ratings with other managers

The third step to avoid rating inflation or deflation is to calibrate your ratings with other managers who have similar or related responsibilities. Calibration is a process that helps you align your ratings with the organizational standards and expectations, and reduce the impact of your personal biases, preferences, or assumptions. This can be done in various ways, such as having a peer review or a second opinion from another manager, participating in a calibration meeting or session with other managers, or using a calibration tool or software that analyzes your ratings and feedback. All of these methods can provide you with suggestions or recommendations to adjust your ratings.

4 Provide constructive and actionable feedback

To avoid rating inflation or deflation, providing constructive and actionable feedback to your managers and employees is essential. Feedback is a key component of performance management, as it helps your managers and employees understand their strengths and areas of improvement, and motivates them to achieve their goals and develop their competencies. When providing feedback, it should be timely, specific, balanced, and actionable. This means that you should provide feedback regularly and promptly, not just at the end of the performance cycle. Additionally, you should provide examples and evidence to support your ratings and feedback, and avoid vague or general statements. Furthermore, you should acknowledge and appreciate the positive aspects of performance, and also address the negative or challenging aspects in a respectful and supportive way. Lastly, you should provide suggestions or recommendations on how to improve performance, and agree on a plan or a follow-up with your managers and employees.

5 Monitor and review your ratings and feedback

The fifth step to avoid rating inflation or deflation is to monitor and review your ratings and feedback, and make adjustments if needed. This can help you identify and correct any errors or inconsistencies, track and measure the progress and impact, and evaluate and improve your own performance. Additionally, you can measure the achievement of goals, the development of competencies, and the satisfaction of managers and employees.