Performance Management

This guide covers the full performance management lifecycle in TalinoHR, including review cycles, goal management, 360 feedback, calibration, PIP automation, the 9-box talent grid, and competency gap analysis.

Performance Review Cycles

Navigate to Performance → Reviews (/performance) to manage review cycles.

Creating a Cycle

A performance cycle defines the review period and parameters:

• Name - Descriptive name (e.g., "2026 Annual Review")
• Start Date and End Date - The evaluation period
• Goal Weight Percent - What percentage of the final rating comes from goal achievement (e.g., 40% goals, 60% competencies)

Cycle Scope

Cycles apply company-wide. All active employees with reviews linked to the cycle participate.

Review Workflow

Each performance review follows a 4-phase workflow:

NOT_STARTED -> SELF_ASSESSMENT -> MANAGER_REVIEW -> CALIBRATION -> COMPLETED

Phase 1: Not Started

The review is created and assigned to an employee, linked to a cycle. No action has been taken yet.

Phase 2: Self-Assessment

The employee completes their self-assessment through the ESS portal at ESS → Performance (/ess/performance):

• Rate themselves on assigned competencies
• Provide self-assessment comments
• Review and update goal progress

Once submitted, the review advances to the manager review phase.

Phase 3: Manager Review

The employee's direct manager reviews the self-assessment and provides their evaluation:

• Rate the employee on each competency
• Provide manager comments and feedback
• Assess goal completion
• Enter a potential rating (used for the 9-box talent grid)
• Make a recommendation: continue, merit increase, promotion, or PIP

Once the manager submits, the review advances to calibration.

Phase 4: Calibration

HR and senior management calibrate ratings across the organization to ensure consistency:

• Review rating distributions by department
• Adjust ratings to maintain fairness across teams
• Document calibration adjustments with reasons

After calibration, the review is marked as COMPLETED.

Goal Management

Navigate to Performance → Goals (/performance/goals) to manage goals.

Goal-to-Review Linking

Goals are linked to review cycles via the cycleId field. Each goal has:

• Title - What the goal is about
• Description - Detailed description
• Weight - How much this goal contributes to the goals portion of the review (must sum to 100% within a cycle)
• Status - NOT_STARTED, IN_PROGRESS, COMPLETED, or CANCELLED
• Target and Actual - Measurable target and actual achievement

Goal Scoring

The system uses lib/performance/goal-scoring.ts to blend goal achievement into the final review rating. The cycle's goalWeightPercent determines the split:

Final Rating = (Goal Score x goalWeightPercent) + (Competency Score x (100 - goalWeightPercent))

For example, with goalWeightPercent: 40:

• 40% of the final rating comes from goal achievement
• 60% comes from competency ratings

360 Feedback

TalinoHR supports multi-source feedback through the ReviewFeedback model.

Feedback Sources

Three types of feedback providers:

Source	Description
PEER	Colleagues at the same level
SUBORDINATE	Direct reports of the employee
EXTERNAL	Clients, partners, or other external stakeholders

Collecting Feedback

Feedback is collected during the review cycle. Each feedback entry includes:

• Rating
• Qualitative comments
• The relationship type (peer, subordinate, external)

Feedback Aggregation

The feedback aggregator (lib/performance/feedback-aggregator.ts) compiles multi-source feedback into a summary:

• Average ratings by source type
• Combined qualitative themes
• Comparison with self-assessment and manager ratings

Calibration Sessions

Navigate to Performance → Calibration (/performance/calibration) to manage calibration sessions.

What is Calibration?

Calibration ensures rating consistency across the organization. Without calibration, some managers may be lenient while others are strict, leading to unfair evaluations.

Calibration Process

1. Create a CalibrationSession linked to a review cycle
2. Review the rating distribution statistics generated by lib/performance/calibration.ts
3. Identify outliers and discuss in calibration meetings
4. Record adjustments via CalibrationAdjustment records, each capturing:
   • Original rating
   • Adjusted rating
   • Reason for adjustment
   • Who made the adjustment

Rating Distribution Stats

The calibration module computes:

• Rating distribution (how many employees at each rating level)
• Department-level comparisons
• Standard deviation and mean
• Self-assessment vs. manager rating bias analysis

PIP Automation

Performance Improvement Plans are automatically triggered based on manager recommendations.

Auto-Creation

When a manager selects "PIP" as their recommendation during the manager review phase, the system automatically:

1. Creates a 90-day PIP for the employee
2. Sets the start date to the current date
3. Links the PIP to the performance review

This is handled by lib/performance/pip-automation.ts.

Disciplinary PIP

A PIP is also auto-created when a DISCIPLINARY_SUSPENSION personnel action is applied. This creates a 90-day PIP to track improvement after the suspension period.

PIP Tracking

PIPs include:

• Start and end dates (90-day window)
• Improvement objectives
• Progress checkpoints
• Final outcome (improved, not improved, extended)

9-Box Talent Grid

Navigate to Performance → Talent Grid (/performance/talent-grid) to view the talent grid.

What is the 9-Box Grid?

The 9-box grid plots employees on two axes:

• Performance (X-axis) - Based on the final review rating
• Potential (Y-axis) - Based on the potentialRating entered during the manager review phase

Each axis is divided into three levels:

Level	Rating Range
LOW	Below 2.5
MEDIUM	2.5 to 3.49
HIGH	3.5 and above

This creates a 3x3 grid with 9 cells, each representing a talent category:

	Low Performance	Medium Performance	High Performance
High Potential	Inconsistent Player	Growth Employee	Star
Medium Potential	Risk Employee	Core Employee	High Performer
Low Potential	Poor Fit	Average Performer	Technical Expert

Using the Talent Grid

• Click on any cell to see the employees in that category
• Use the summary cards for a quick overview of talent distribution
• Export the grid data as CSV for offline analysis
• Employees without a potential rating appear in the "unmapped" list

Prerequisites

For an employee to appear on the grid, they need:

1. A completed performance review in the selected cycle
2. A potentialRating entered by the manager during the review

Competency Gap Analysis

The competency gap analysis (lib/performance/competency-gap-analysis.ts) identifies skill gaps between expected and actual competency levels.

How It Works

1. Each position has competency requirements (expected level per competency)
2. During performance reviews, employees are rated on each competency
3. The gap is calculated as: Expected Level - Actual Rating

Color-Coded Results

Gap Range	Color	Interpretation
Less than 0.5	Green	Meets or exceeds expectations
0.5 to 1.0	Yellow	Minor gap, development needed
Greater than 1.0	Red	Significant gap, priority training

Using Gap Analysis

Gap analysis data feeds into:

• Individual development plans
• Training needs assessment
• Succession planning
• Department-level capability reviews

Performance Analytics

Navigate to the performance analytics dashboard for insights across the organization.

Available KPIs

The analytics module (lib/performance/analytics.ts) provides:

• Rating Distribution - Histogram of final ratings across the organization
• Department Performance - Average ratings by department for comparison
• Self vs. Manager Bias - Shows the average difference between self-assessment and manager ratings
• Performance Trends - Rating trends across multiple review cycles
• Completion Rates - Percentage of reviews completed per cycle

Merit Matrix

The merit matrix (lib/performance/merit-matrix.ts) connects performance ratings to salary increase recommendations.

How It Works

The merit matrix maps performance rating levels to recommended salary increase percentages. The matrix respects:

• The employee's position salary range (min/max)
• Current salary positioning within the range
• Position range cap to prevent exceeding the maximum salary

All merit calculations use Decimal.js for precision.

Probation Reviews

TalinoHR tracks probationary employees and their review status via lib/probation/tracker.ts.

Art. 296 Compliance

The Philippine Labor Code (Art. 296) requires:

• Probationary period not exceeding 180 days (6 months)
• Clear performance standards communicated at the start
• Regularization or separation before the deadline

30-Day Alert

The system triggers an alert 30 days before the 180-day deadline, giving HR time to:

• Complete the probationary review
• Process a REGULARIZATION personnel action
• Or process a separation if performance is unsatisfactory

Regularization Link

When a REGULARIZATION personnel action is approved, it automatically links to the latest completed performance review via the linkedReviewId field.

ESS Performance Portal

Employees access their performance data through ESS → Performance (/ess/performance):

• View current and past performance reviews
• Complete self-assessments during the review cycle
• View goals and update progress
• See feedback received (once the review is completed)
• Track PIP progress if applicable