Our company is “reimagining” Performance Management and would appreciate if you could share the rating scale and the descriptors you use for the Year End Performance evaluation?

We are a SaaS company that has had a 4 point scale since 2021. We have made a lot of progress and balanced the number of Exceeds expectations which was almost everyone when I got here. This year we are moving to a 5 point scale. 

Rating Label Definition
1 Does Not Meet Expectations: Behaviors and/or results fall short of expectations

2 Needs Improvement:  Performance does not consistently meet expectations in one or more critical areas. Results and/or behaviors require redirection or support

3 Meets Expectations – Core Contributor:  Reliably delivers on role expectations. Performance is steady and consistent in scope and impact. Opportunities exist to stretch, influence, expand contribution, or develop deeper expertise.

4 Meets Expectations – High Impact Contributor: Delivers strong results and often contributes beyond their core role. Recognized as a go-to individual who improves team performance, drives initiatives, or enhances cross-functional success.

5 Exceeds Expectations – Transformational/Pivotal Contributor: Consistently delivers high-impact outcomes that redefine what's possible for the team or business. Introduces scalable solutions, drives measurable gains, and inspires change beyond their role. Often sets new standards for performance, innovation, or culture.

We have a 5-point rating scale:
5 - Leading Performance
4 - Strong Performance
3 - Solid Performance
2 - Building Performance
1 - Not Meeting Expectations

70% weighting is for Performance Goal and 30% weighting is for Competencies

We eliminated ratings and focus on continuous coaching & feedback. We have a manager effectiveness dashboard and personal effectiveness dashboard which provide key data points into individual performance and leadership performance. I would be happy to share more if you would like to discuss further.

Hi! We currently use a 3-point scale, and are actively working on changing to a 5-point scale for 2026 performance year. Currently we have the following definitions: 
 - Exceptional performance: Contributions continuously add significant value and positive impact.
 - Strong performance: Consistently contributes valuable accomplishments.
 - Needs improvement: Continuing to develop consistent performance.

For our future 5-point scale, still work in progress but we are working with:
 - Exceeds expectations: Consistently delivers outstanding results far beyond expectations.
 - Exceeds some expectations: Regularly delivers results that surpass expectations, with some standout achievements.

 - Meets expectations: Consistently achieves expected results with dependable performance.
 - Meets some expectations: Delivers results inconsistently; improvement needed in some areas.
 - Does not meet expectations: Consistently falls short of expectations and role requirements.

Hope this helps!

We currently use a 5-point scale, and anticipate that changing over time to a different scale for our hourly employees (as mentioned by Holly below). Currently, we rate with the following definitions: 

1-Does not meet expectations
Associate does not meet any management and/or goal expectations.

2-Meets some expectations
Associate meets some management and/or goal expectations.

3-Meets expectations
Associate meets all management and/or goal expectations.

4-Meets all and exceeds some expectations
Associate meets all management and/or goal expectations while also exceeding some.

5-Exceeds all expectations
Associate exceeds all management and/or goal expectations.