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Few companies have influenced the performance management space as significantly as Google.

Known for its data-driven culture and innovative management practices, Google has helped set the standard for how modern organizations approach employee evaluations.

Here I’ll explore how Google’s performance review process has evolved, the impact of GRAD, and some key takeaways for organizations looking to improve their own performance management systems.

Google Performance Reviews

Wondering how to conduct a performance review? Well, this is how Google approaches them:

Self-Assessment

During a performance review, Google employees evaluate their own performance using, I think, a behaviorally anchored performance rating scale (never demonstrates” to “always demonstrates”) with examples to help justify their decision.

These accomplishments will appear in the next step (360-degree reviews) to reviewing peers, who’ll be then asked to assess their proximity with these projects, and the reviewee’s impact on their results.

360-Degree feedback

Google incorporates 360-degree feedback or “peer reviews” into its performance review process to give reviewers a more holistic view of the reviewee’s performance.

This starts by both working together to identify who will take part in the review so the sample is fair and representative.

Using the rating criteria as the self-assessment, those chosen to participate provide feedback in three different areas: strengths, weaknesses and things that the person should consider working on/developing.

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Performance calibration

Post self assessment and 360-degree feedback (wonder if they use 360 feedback software or performance management software), managers use the data to draft an overall rating using this scale:

  • Needs improvement
  • Consistently meets expectations
  • Exceeds expectations
  • Strongly exceeds expectations
  • Superb.

Managers then hold a performance calibration meeting to review all of their employees’ draft ratings together and agree on fair ratings. 

The reasons for this are that it removes the pressure managers may feel from employees to inflate ratings, ensures that the end results reflect a shared expectation of performance, and increases perception of fairness amongst workers.

Outputs

The calibration meetings output workers’ performance ratings for the period. After the rating is decided, managers deliver feedback over two meetings: one where feedback is given, taking into account peer reviews and managers’ impressions of their employees, and another discussing compensation and promotion decisions.

The reason the two are separate conversations is because Google found that people focused on compensation aren’t as good at taking on feedback and learning “shuts down”.

Google’s Performance Management Cycle

Google performance management cycle goes something like this:

Quarterly OKRs

Google sets 4-6 OKRs (objectives and key results) on a quarterly basis, this includes the company, senior executives, teams, and basically every worker.

Contrary to the cascading goals method, where goals are set at the top and cascade down, each person sets their own goals that are are aligned with the wider org through a mix of supervisor oversight, peer pressure, and psychology.

People are encouraged to set ambitious, "stretch" goals to drive innovation and significant progress. 

The ideal achievement rate for these goals is around 70%, indicating that the objectives are challenging yet attainable.

Monthly Check-Ins

At Google, monthly check-ins are integral to the performance management system, fostering continuous communication and development between managers and their team members. These regular one-on-one meetings focus on several key areas:

  • Career development: Workers and managers discuss professional growth, exploring opportunities for skill enhancement and advancement within the company. 
  • Coaching: Managers provide guidance and support, helping employees navigate challenges and improve performance. 
  • Addressing personal issues: These sessions offer a platform to discuss any personal concerns that may impact work, ensuring employees feel supported. 

By maintaining consistent monthly check-ins, Google promotes open communication, timely feedback, and alignment with organizational goals, contributing to a supportive and productive work environment.

Annual performance review

At the end year, the annual reviews take place incorporating self-assessments and 360-degree feedback. This comprehensive evaluation considers both results and behaviors demonstrated throughout the year.

Upward Feedback Survey

The Upward Feedback Survey at Google is an annual, anonymous evaluation that allows employees to assess their managers’ performance. 

The survey evaluates managers on key leadership behaviors, such as coaching ability, providing autonomy, supporting career development, and demonstrating technical expertise. Employees rate their managers on a scale and provide open-ended feedback, highlighting strengths and suggesting areas for improvement.

To ensure confidentiality, managers only receive aggregated feedback when at least three responses are collected.

Focused on development rather than evaluation, the survey helps managers identify their strengths and work on areas needing growth. 

Managers are encouraged to share results with their teams and create actionable plans, fostering transparency and continuous improvement in leadership practices.

Googlegeist Engagement Survey

The Googlegeist Engagement Survey is an annual, anonymous questionnaire distributed to all Google employees to assess their satisfaction and gather feedback on various aspects of their work experience. 

The survey covers topics such as management effectiveness, compensation, work-life balance, opportunities for growth, and overall job satisfaction.

With a high participation rate—reportedly around 88% or higher—the survey provides leadership with valuable insights into employee sentiment, helping to identify trends, best practices, and areas needing attention.

Google’s Switch To GRAD

In May 2022, Google introduced the Googler Reviews and Development (GRAD) system to streamline its performance review process and enhance employee development. 

This change was driven by internal feedback indicating that 47% of employees found the previous biannual review system inefficient and time-consuming. 

The GRAD system focuses on annual performance evaluations, reducing the frequency from twice to once a year, and introduces a new five-point rating scale:

  • Transformative Impact (TI)
  • Outstanding Impact (OI)
  • Significant Impact (SI)
  • Moderate Impact (MI)
  • Not Enough Impact (NE)

However, according to Google, the system aims to “Focus on continuous development and regular feedback cycles throughout the year” rather than just a traditional, twice-yearly evaluation.

Promotions continue to occur bi-annually, with an increased emphasis on internal mobility and growth opportunities. 

The implementation of GRAD has led to a shift in employee performance distributions. 

Reports indicate that under GRAD, 6% of employees were categorized into lower performance brackets, compared to 2% under the previous system. 

This change has implications for employee morale and perceptions of the evaluation process. 

Overall, GRAD represents Google's effort to create a more efficient and development-focused performance management system, though its long-term impact on employee satisfaction and performance continues to be assessed.

Key Takeaways

  • Google incorporates 360-degree feedback into its performance reviews to provide a more holistic view of employee performance which is further reviewed through performance calibration sessions.
  • Google favours continuous performance management characterised by regular check-ins and feedback with one annual performance review.
  • For manager development, Google sends an annual survey to workers to gather feedback about their manager, who are then encouraged to share results with their teams and create actionable development plans.

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Finn Bartram

Finn is an editor at People Managing People. He's passionate about growing organizations where people are empowered to continuously improve and genuinely enjoy coming to work. If not at his desk, you can find him playing sports or enjoying the great outdoors.