What are the common biases in performance appraisal?

1 Halo effect

The halo effect is when you judge an employee based on one positive trait or aspect of their performance, and ignore or overlook their weaknesses or areas of improvement. For example, you might give a high rating to an employee who is very friendly and cooperative, but neglect their low productivity or poor quality of work. The halo effect can lead to overestimating or inflating the performance of some employees, while undervaluing or deflating the performance of others.

2 Horns effect

The horns effect is the opposite of the halo effect. It is when you judge an employee based on one negative trait or aspect of their performance, and ignore or overlook their strengths or achievements. For example, you might give a low rating to an employee who is very shy and reserved, but disregard their high efficiency or creativity. The horns effect can lead to underestimating or devaluing the performance of some employees, while overvaluing or exaggerating the performance of others.

3 Recency bias

Recency bias is when you base your evaluation of an employee on the most recent events or incidents, rather than on their overall performance over a period of time. For example, you might give a high rating to an employee who performed exceptionally well in the last project, but forget their poor performance in the previous projects. Or, you might give a low rating to an employee who made a mistake in the last week, but ignore their consistent performance in the past months. Recency bias can lead to inaccurate or inconsistent ratings that do not reflect the true performance of the employees.

4 Similarity bias

Similarity bias is when you favor or prefer employees who are similar to you in terms of personality, values, beliefs, background, or interests, and discriminate or dislike employees who are different from you. For example, you might give a high rating to an employee who shares your hobbies or opinions, but give a low rating to an employee who has a different style or perspective. Similarity bias can lead to unfair or biased ratings that are influenced by your personal preferences or prejudices, rather than by the actual performance of the employees.

5 Leniency bias

Leniency bias is when you tend to give higher ratings than deserved to all or most of your employees, regardless of their actual performance. For example, you might give a high rating to an employee who is average or below average, because you want to avoid conflict, boost morale, or maintain a good relationship. Leniency bias can lead to inflated or unrealistic ratings that do not reflect the true performance of the employees, and also reduce the motivation, accountability, and improvement of the employees.

6 Severity bias

Severity bias is when you tend to give lower ratings than deserved to all or most of your employees, regardless of their actual performance. For example, you might give a low rating to an employee who is above average or excellent, because you have high expectations, want to challenge them, or think they can do better. Severity bias can lead to deflated or pessimistic ratings that do not reflect the true performance of the employees, and also lower the morale, confidence, and satisfaction of the employees.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?