As per a FoundIt survey, 74% of employees in India got an appraisal in FY 24-25, and yet 86% still wanted to actively switch jobs. The disparity indicates that traditional appraisal processes are not enough to stop attrition.
During the performance review process, honest conversations balanced with due appreciation are important to create a truly progressive experience. In most companies, performance reviews also form the basis of how much an employee’s compensation should be increased as part of the overall appraisal process.
However, many employees find themselves tense during this process, admittedly nervous over how their performance will be evaluated, among other things. As such, frustrating details like vague timelines or unclear procedures can make the appraisal process that much more difficult.
Why Transparency Matters
As per the Effectiveness of Performance Appraisals in Employee Growth: A Study of Indian Companies study in April 2025, companies with transparent, ongoing feedback processes and career-linked appraisals see up to 30% higher retention rates and measurable skill gains among employees.
Unexpected changes in anticipated appraisal cycles can often hamper employee morale. In the past few years, Infosys froze its salary hikes for FY 2022-2023, and, in the FY 2024-2025 cycle, the annual appraisal was delayed and rolled out in two phases.
As such, when the company announced the start of the Annual Performance Review cycle for FY 2025-2026, many were still on the fence. “This is a routine exercise, but we hope the company will give us a raise this time, unlike last year,” an employee told ET.
Needless to say, the purpose of an appraisal process might be related to feedback and salary increase, but the presence or absence of transparency during the process can have long-term consequences.
- Builds trust: Transparency during the appraisal process becomes even more important when it comes to a possible increase in compensation. It indicates that the company is dedicated to providing a fair chance, keeping the interests of both employees and leadership in mind.
- Reduces anxiety and speculation: Especially for new employees, performance reviews can be nerve-wracking given the novelty of the experience. Being transparent about how the process works and what the different metrics mean can help soothe their tensions.
- Improves engagement and accountability: When employees know what is expected of them and how their work is evaluated, it can lead to an increase in overall engagement. With clear expectations, both employers and employees can quickly find a rhythm that works for all.
- Ensures fairness: Having an open and established appraisal system means that employees can indeed believe in the fairness of it all. If all are judged based on the same metrics, chances are they will be compensated based on their performance rather than any biased or arbitrary standards.
What Transparency in Review Timelines Really Means
In Gallup’s The Culture Imperative: Insights for India’s Next Chapter Report, 45% of senior HR leaders identified Performance Management as a cultural risk. This highlights a critical gap between how performance management systems are designed and how they are experienced by employees.
Transparency, when it comes to the review process, can be achieved through simple steps and clear communication. Providing information about the overall process lets your employees know that you are indeed giving the process all its due consideration.
Clear Communication
Communication is key to making any process successful, and it doubly goes for something as crucial as the appraisal cycle. With a clear idea in mind, one must make the process easy to navigate and always be open to questions.
Be open about the different phases of the appraisal process and how they work. Explain what each step will entail, what its purpose is, and what result can be expected.
More than that, make sure that reviewers provide feedback that is easy to understand, feasible, and actionable, and in line with the employee’s skill sets as well as company goals. After all, a comprehensible review should be a must for an evaluation.
Clear Expectations
Both the reviewer and reviewee should have a clear set of expectations in mind. From established deadlines to assigned responsibilities, the people involved need to be aware of what they should and shouldn’t do.
Having clarity in expectations can go a long way toward easing employees’ frayed nerves and helping leaders manage their feedback and schedules.
Be also open about the fact that the appraisal processes should be conducted professionally. While employees should keep an open mind about the feedback, reviewers must also adopt an empathetic yet unbiased approach to ensure the process counts.
Common Challenges in Communicating Review Timelines
As stated before, communication is the key to maintaining transparency in the review process. By keeping the more common challenges that might come one’s way, HR can be prepared to either bypass them completely or have necessary remedies at hand.
- Inconsistent messaging across managers: Use a common set of guidelines to send to all to avoid confusion.
- Delays in the appraisal process: Be open about the reasons behind the delay and the measures being taken to overcome them.
- Lack of accessible documentation or calendarized reminders: Utilise HR Tech platforms that can help centralise all documents, create schedules, send reminders, and keep the company’s data safe.
How HR and Leaders Can Improve Timeline Communication
Performance review communication does not need to be a convoluted process that one must tread carefully. It is, ultimately, about being organised, having a clear understanding of what is expected, and ultimately what you expect of others.
- Use centralised communication, including calendars, emails, and transparent dashboards.
- Provide a clear, visual review timeline at the start of the cycle to all involved parties.
- Train managers to communicate proactively, empathetically, and clearly.
- Offer periodic reminders and status updates to keep the process flowing smoothly.
- Use HRMS and performance management tools to automate reminders and track progress.
In the End…
For many employees, the appraisal cycle is important not just to grow but also to realise how much their work is appreciated by their company. It goes beyond compensation increases or promotions and is ultimately about creating an environment that acknowledges employees’ contributions in a tangible way.
Clarity in timelines and communication creates a smoother, fairer, and more trusted appraisal cycle. Transparency during this time is not just an HR task; it is imperative to develop a strong culture and a healthy working environment.
