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Review guide

Competency-based performance reviews

A competency-based review compares evidence with published expectations for the employee's level. Everyone in the cycle uses the same Function version, and each rating is supported by prose that explains the judgment.

Published by Peasy HRPublished 18 Aug 2026Updated 18 Aug 2026

Short answer

A competency-based review compares evidence with published expectations for the employee's level. Everyone in the cycle uses the same Function version, and each rating is supported by prose that explains the judgment.

One snapshot for the cycle

Pin the Function version when the review cycle starts. Managers and employees should use those expectations through sign-off, even if HR edits the live Function later.

Record any unclear or missing expectation for the next Function version. Do not silently change the standard during the cycle.

  • Function version used at kick-off
  • Employee's role track and level
  • Relevant competencies and expectations
  • Shared rating scale

Structure the write-up

Start with the period's main story. For each competency, state the observable evidence, compare it with the level expectation, and explain the rating.

End with one or two development priorities. Each priority needs a concrete next action and an observable way to check progress.

Per-competency paragraph

For [competency], they [observable action] during [work]. [Artifact or feedback] shows [verified result]. This [met, exceeded, or fell short of] the [level] expectation because [reason]. Next, they will [concrete action] by [checkpoint].

What calibration needs

Bring the pinned expectations, proposed ratings, and concise evidence. Review disagreements by reading the expectation and testing the evidence against it.

Do not invent evidence or score work that reviewers could not observe. Mark insufficient context and decide how to gather it fairly.

After sign-off

The final narrative must match the calibrated rating. Employees should be able to see the expectation, evidence, judgment, and development path.

Use themes from the cycle to improve the next Function version without rewriting the standard that already governed the completed cycle.

Sources

  • Peasy HR competency writing style guide: observable behavior, distinct competencies, and level jumps by scope, autonomy, and complexity.
  • Peasy HR review writing style guide: evidence over traits, no invented facts, and development feedback with a next step.

Connect reviews to a Function

If you do not have a Function yet, generate one first. Then write the review against those expectations.

Build the Function first

Common questions

Why pin a Function version at kick-off?

It keeps the standard stable through the cycle. Employees and managers are assessed against the same expectations even if the live Function changes.

What if there is not enough evidence for a competency?

Record the gap and gather relevant evidence where possible. Do not invent a project, metric, customer, or score to complete the form.

Does Peasy HR call the rating standard a rubric?

No. Peasy HR uses a competency framework for role expectations and a rating scale for assessment choices.

Related resources

Guide

How to use competencies in performance reviews

Use competencies in performance reviews by rating each person against the expectations for their Function, role track, and level, then supporting the rating with evidence from the review period. Keep one Function version fixed for the cycle, discuss rating differences in calibration, and update unclear criteria only for future cycles.

Read guide

Review guide

Performance review calibration guide

Calibration aligns how leaders apply the same rating scale and Function expectations before reviews are finalized. A useful session compares evidence, tests edge cases, records decisions, and sends managers back with clear updates for each draft.

Read guide

Review guide

Performance review rating scales

A rating scale works when each point has an observable meaning against the employee's current level expectations. Keep the scale stable across the cycle, require evidence for each rating, and use calibration to resolve differences in interpretation.

Read guide
Competency-based performance reviews | Peasy HR