8 Practical Strategies to Eliminate Bias in Performance Appraisals

Bias doesn’t just affect performance appraisals—it damages trust, slows growth, and reduces engagement.

Let’s face it—performance reviews have a reputation problem. For many employees, they are a dreaded annual ritual that frustrates them, makes them feel overlooked, or leaves them entirely in the dark.

And it’s not like companies aren’t trying. Gartner’s research says that 81% of HR leaders are changing their organization’s performance management system. But let’s be real—things still aren’t hitting the sweet spot.

For many employees, performance reviews feel like a gamble, influenced more by subjective opinions than actual contributions. A significant number of employees worldwide believe that performance evaluations are riddled with bias. A report by Gallup revealed that companies with fair performance appraisal processes experience a 14% higher employee engagement rate than organizations with unfair appraisal practices. This perception of bias or unfairness damages morale, productivity, and employee retention.

But here’s the good news: It doesn’t have to be this way. By implementing structured, evidence-based practices, organizations can eliminate bias and build a performance review process that’s fair, transparent, and empowering.

Let’s look at 8 practical strategies to achieve just that

1. Use a Rating Rubric for Objectivity

Bias often creeps into reviews because feedback is subjective. Pamela Funk, VP of HR at Herculite Products, shared how her team combats this with a rating rubric. Managers must evaluate employees based on clear, measurable actions rather than gut feelings by requiring supervisors to provide specific examples for ratings, especially for the highest and lowest scores.

How to Apply This:

Create a standardized rubric that outlines each rating and provides examples. For instance, a “5” for collaboration might mean consistently leading cross-departmental projects successfully.

2. Calibrate Reviews Across Departments

Disparities often arise between departments even when managers are fair within their teams. Some managers are naturally stricter, while others are more lenient. Herculite combats this by calibrating reviews—ensuring that performance ratings are consistent across the organization.

How to Apply This:

Host calibration sessions where managers discuss their ratings and align on consistent standards. This not only improves fairness but also encourages open conversations about expectations.

3. Embrace Continuous Feedback

Waiting until performance review time to provide feedback often results in a one-sided conversation—and sometimes, surprises. At The Siemon Company, Dianne Veley emphasizes the importance of ongoing feedback.

How to Apply This:

Encourage managers to provide informal feedback regularly—during one-on-ones, after projects, or when milestones are reached. Use these opportunities to address concerns, celebrate wins, and set expectations for improvement.

4. Document and Record Everything

Both Pamela and Dianne share the importance of documenting feedback and performance data. When managers record examples, accomplishments, and changes in ratings, it becomes easier to justify decisions and eliminate guesswork.

How to Apply This:

Use tools like Profit.co to log OKR check-in comments, task updates, and recognitions. This creates a comprehensive record that can help to generate evidence-based performance summaries.

5. Bridge the Gap Between Project-Driven and Service-Oriented Teams

Departments often differ in how they measure success. Project-driven teams might rely on clear metrics, like task completion, while service-oriented teams focus on softer metrics, like how things are done.

Dianne explains that at The Siemon Company, managers address this by providing detailed feedback for any significant rating changes, ensuring employees understand why their evaluations shifted and what they can improve.

How to Apply This:

Tailor evaluation criteria to fit each department’s unique needs while maintaining consistency in overall standards.

6. Train Managers to Recognize and Address Bias

No matter how structured the process, bias can still creep in when managers aren’t aware of it. By training supervisors to recognize unconscious bias and its impact, companies can significantly improve the quality of reviews.

Pamela highlights the value of promoting civility and respect in the workplace to ensure all employees feel valued and included.

How to Apply This:

Offer regular bias awareness and inclusivity training to managers. Focus on identifying biases related to gender, race, tenure, and personality differences.

7. The Power of AI in Performance Reviews

Technology can be a game-changer in removing bias. For example, Profit.co’s AI-driven performance Reviews use the data from OKR check-ins, task tracking, meeting notes, and recognitions to create personalized and objective performance summaries.

How it Works:

1. OKR Check-In Comments: AI transforms detailed comments into a comprehensive view of individual progress.
2. Task Tracking: AI understands workload and contributions by analyzing logged tasks and their progress.
3. Recognitions: Feedback and directed conversations help AI identify soft skills and competencies.
4. Meaningful Meeting Notes: Actionable insights from meetings provide context for achievements and areas for improvement.

AI minimizes bias and offers insights rooted in data, eliminating the need for artificial or stereotyped evaluations.

8. Foster Inclusion in the Process

Inclusivity is the foundation of a trusted review process. When employees feel valued, respected, and heard, they are more likely to trust the system. Promoting civility and embracing diversity helps align performance evaluations with organizational values while fostering a culture of belonging.

How to Apply This:

Embed respect, civility, and diversity into your company’s culture. Train managers to consider diverse perspectives and create an inclusive review environment that values individuality and fresh ideas.

By embracing these strategies, organizations can create a culture of fairness, trust, and growth—turning performance reviews into a powerful tool for success

Conclusion

At its heart, performance management isn’t rocket science—it’s about trust, clarity, and connection. Employees don’t expect perfection, but they do want fairness. They want to see how their work ties to the company’s bigger picture, receive meaningful coaching from their managers and feel rewarded for their contributions.

When leaders take the time to listen, act on feedback, and communicate transparently, performance management shifts from being a dreaded chore to a powerful tool for engagement and growth. At the end of the day, it’s not just about ticking boxes—it’s about building a system that values people, fosters development, and aligns everyone toward shared success.

Because when employees believe the process is fair, they’re not just more engaged—they’re empowered to deliver their best. Isn’t that the ultimate goal?