Performance Review Calibration
Analyze rating distributions for bias (Leniency, Central Tendency). Enter values for instant results with step-by-step formulas.
Formula
Variance = Actual% - Target%
We calculate the percentage of employees in each rating bucket and compare it to your organizational target (often a guided distribution or expected curve). Significant variance (>5%) indicates potential bias in how ratings are being applied.
Worked Examples
Example 1: Leniency Bias
Problem:40% rated 'Exceeds Expectations' (Target 20%)
Solution:Variance +20%. Ratings are too generous. Budget for raises will be exceeded.
Result:Bias: Leniency
Example 2: Central Tendency
Problem:90% rated 'Meets Expectations' (Target 70%)
Solution:Variance +20%. Managers are avoiding difficult conversations or failing to differentiate top talent.
Result:Bias: Central Tendency
Example 3: Severity Bias
Problem:30% rated 'Developing/PIP' (Target 10%)
Solution:Variance +20%. Standards may be unclear or unrealistic.
Result:Bias: Severity
Frequently Asked Questions
What is 'Calibration'?
Calibration is a meeting where managers discuss proposed employee ratings to ensure they are applying standards consistently across teams, reducing individual manager bias.
Why does calibration matter for pay?
Ratings typically drive merit increases. If ratings are inflated (leniency), you will run out of budget or spread the peanut butter too thin, under-rewarding your best people.