Avoiding Bias in Performance Appraisal

Performance appraisals are intended to be fair, objective, and development-oriented. However, bias—often unintentional—can distort evaluations, affect employee trust, and weaken the credibility of the performance management system.

This article explains common appraisal biases and outlines practical ways organisations can reduce their impact through process design, manager capability, and HR governance.

Why Bias in Appraisals Is a Serious Concern

Unchecked bias can lead to:

• Perceived or actual unfairness in ratings

• Reduced employee engagement and morale

• Talent attrition, especially among high performers

• Increased grievances and trust issues

Avoiding bias is not about eliminating judgement, but about making judgement more structured and consistent.

Common Types of Performance Appraisal Bias

1. Recency Bias

Overemphasis on recent events rather than performance across the full review period.

Impact:
Early achievements or challenges are overlooked.

2. Halo and Horns Effect

Allowing one strong (or weak) trait to influence the entire evaluation.

Impact:
Ratings become overly positive or negative without balanced evidence.

3. Leniency and Severity Bias

Some managers consistently rate employees too generously or too harshly.

Impact:
Rating distributions become inconsistent across teams.

4. Similarity Bias

Favouring employees who share similar backgrounds, work styles, or viewpoints.

Impact:
Diversity and inclusion efforts may be undermined.

5. Central Tendency Bias

Avoiding extreme ratings by clustering everyone around the middle.

Impact:
High and low performers are not clearly differentiated.

Approaches to Reduce Bias in Appraisals

1. Clear Performance Criteria

• Use well-defined goals and competencies

• Ensure expectations are documented and measurable

2. Multiple Inputs

• Combine self-assessments, manager reviews, and peer feedback where appropriate

• Reduces dependence on a single viewpoint

3. Calibration Discussions

• Review ratings across teams and departments

• Identify inconsistencies and patterns

4. Manager Training

• Train managers to recognise common biases

• Reinforce evidence-based evaluation practices

5. HR Oversight and Governance

• Monitor rating trends and outliers

• Intervene where patterns suggest systemic bias

Sample View: Bias Types and Control Measures

Checklist: Reducing Bias in Performance Appraisals

☐ Performance criteria are clearly defined and documented
☐ Feedback is collected throughout the review period
☐ Managers are trained to recognise common biases
☐ Calibration discussions are conducted regularly
☐ HR reviews rating patterns and outliers
☐ Appraisal decisions are supported by evidence

Role of HR

HR plays a central role by:

• Designing bias-resistant appraisal frameworks

• Enabling calibration and cross-team reviews

• Training managers on fair evaluation practices

• Monitoring trends and intervening where required

HR ensures appraisal processes remain credible, consistent, and defensible.

Key Takeaway

Bias in performance appraisals cannot be eliminated entirely, but it can be significantly reduced through structured processes, multiple inputs, and strong governance. Fair appraisals build trust, improve engagement, and support better talent decisions.