Navigating Annual Performance Reviews: Tackling Discrepancies in Self-Ratings

Annual reviews are a chance to guide, celebrate, and support your team’s growth. But what happens when employees rate themselves higher than you believe is accurate? Handling these conversations well requires empathy, preparation, and a focus on growth—not just feedback.

The Psychology of Perception vs. Reality

Personal experience, blind spots, and confidence levels shape self-assessments. Employees may overrate their leadership or teamwork skills simply because they perceive the effort as an impact. Addressing this misalignment isn’t about proving them wrong—it’s about bridging perception with reality to foster growth.

How to Approach These Conversations

1. Prevent Surprises with Ongoing Feedback Performance reviews shouldn’t be the first-time employees hear about areas for improvement. If you find yourself referencing issues from months ago, that’s a red flag. Regular feedback builds trust and prevents employees from feeling blindsided.

2. Listen Before You Correct Instead of immediately challenging their self-rating, ask: “Can you walk me through how you’ve demonstrated this skill?” This opens space for reflection and allows them to recognize gaps themselves—without feeling defensive.

3. Frame the Conversation Around Growth Rather than dwelling on the discrepancy, shift to actionable next steps. Instead of saying, “You haven’t led enough projects,” ask, “What can we do to help you gain more leadership experience this year?” This turns the discussion into a collaborative effort.

The Power of Continuous Dialogue

A performance review should be a checkpoint in an ongoing conversation—not a sudden reckoning. When feedback is frequent and transparent, employees feel prepared, motivated, and accountable for their development.

How have you handled self-rating discrepancies in reviews? Let’s discuss!