Making Performance Reviews Fairer with Leadership Assessments
Why comparing employees to themselves — rather than each other — leads to better development outcomes
Despite the time and money organizations spend on performance evaluations — an average of $3,000 per employee annually, based on CEB research1 — many employees view them as ineffective or unfair. In fact, a Gallup survey of 1,000 companies revealed that 71% of employees perceive their performance evaluations as having fairness problems.2 Additionally, two-thirds of employees are generally dissatisfied with performance reviews, and 65% believe the evaluations aren’t even relevant to their jobs.3
While performance reviews are often criticized, they play a vital role in talent development. The key to making them effective is shifting the focus from comparing employees to one another to evaluating individual progress over time. This blog outlines the differences between these approaches and provides practical strategies and tools to support a fair, high-impact performance management process.
Temporal vs. Social Comparisons
Research published in Organizational Behavior and Human Decision Processes reveals a critical insight about effective performance review processes: the reference point managers use to evaluate performance significantly influences how fair those evaluations feel.4 Employees prefer it when their performance is evaluated against their own previous performance, known as temporal comparisons, rather than against their peers, known as social comparisons. Temporal comparisons are viewed as more individualized, more accurate, and more respectful. These qualities increase the acceptance of feedback and motivation to improve.
How the LSP-R Promotes Fairness in Performance Reviews
Assessments are one of the most effective ways to implement temporal comparisons in performance reviews. By establishing a baseline of leadership competencies and tracking growth over time, assessments allow leaders to evaluate progress rather than rely on static ratings or peer comparisons. SIGMA’s flagship leadership assessment, the Leadership Skills Profile – Revised® (LSP-R®), is especially well suited for this. It assesses 50 key leadership competencies and provides personalized feedback for development. Used in tandem with its 360-degree feedback counterpart, SIGMARadius, the LSP-R creates a consistent, data-driven foundation for fair, individualized performance evaluations.
Experience the LSP-R for yourself and find out whether this assessment is the right fit for your leadership development needs. Upon completion, you will receive a comprehensive Focus Report with your scores, personalized feedback, and templates to support your development planning. Take 25 minutes to explore the insights the LSP-R can deliver.
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Here are four research-backed ways the LSP-R improves fairness in performance reviews:
1. Baseline Competency Profiles
The LSP-R provides objective data on 50 leadership competencies, generating an individualized baseline for each employee. This makes it easy to track growth over time, allowing performance reviews to focus on developmental progress, not just static ratings.
2. Competency-Based Feedback
Rather than relying on general impressions or comparisons to peers, the LSP-R helps leaders deliver feedback tied directly to observable competencies that are relevant to the role. This makes evaluations feel more accurate and job-relevant, directly addressing one of the top concerns employees have about traditional reviews.
3. Development-First Framing
Because the LSP-R is designed for leadership development and not evaluation alone, it naturally encourages conversations about how employees can grow. This development-focused approach aligns with research that shows performance reviews are perceived as fairer when the focus is on helping employees improve, rather than ranking them.5
4. Complement Self-Assessment with Multi-Source Feedback
Used in tandem with the LSP-R, SIGMARadius — our 360-degree feedback assessment — collects input from peers, direct reports, and supervisors to provide a holistic view of their leadership performance. This feedback can be used to validate strengths, uncover blind spots, and measure growth over time. Together, these tools create a consistent, repeatable process that makes performance management more transparent and development-oriented.
Build a Fairer Performance Management System
Fairness in performance reviews isn’t just a best practice; it’s a strategic advantage. When employees feel respected, understood, and fairly evaluated, they’re more engaged, more committed, and more motivated to grow.
Organizations that want to build a fairer performance management system can start by shifting their mindset: compare employees to their past selves, not to each other. With tools like the LSP-R, human resources and leadership teams can anchor evaluations in objective, role-relevant data and create development plans tailored to each individual.
The result? A performance review process that employees value, and one that actually drives performance.
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SIGMA’s validated leadership assessments and talent tools help organizations identify high-potential employees early and develop them into future-ready leaders.
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If your organization is new to using the LSP-R, begin with a free trial to experience the benefits of a data-driven, personality-based leadership assessment firsthand. In only 25 minutes, you will receive a comprehensive Focus Report with your scores, personalized feedback, and templates to support your development planning. Learn how this powerful tool can be applied across your organization to drive growth, reduce risk, and align your talent strategy with business goals.
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1 Chun, J., Brockner, J., & De Cremer, D. (2018). People Don’t Want to Be Compared with Others in Performance Reviews. They Want to Be Compared with Themselves. Harvard Business Review. https://hbr.org/2018/03/people-dont-want-to-be-compared-with-others-in-performance-reviews-they-want-to-be-compared-with-themselves
2 Wigert, B., & Mann, A. (2025). Give performance reviews that actually inspire employees. Gallup.com. https://news.gallup.com/opinion/gallup/219863/give-performance-reviews-actually-inspire-employees.aspx
3 Chun, J., Brockner, J., & De Cremer, D. (2018). People Don’t Want to Be Compared with Others in Performance Reviews. They Want to Be Compared with Themselves. Harvard Business Review. https://hbr.org/2018/03/people-dont-want-to-be-compared-with-others-in-performance-reviews-they-want-to-be-compared-with-themselves
4 Chun, J. S., Brockner, J., & De Cremer, D. (2018). How temporal and social comparisons in performance evaluation affect fairness perceptions. Organizational Behavior and Human Decision Processes, 145, 1–15. https://doi.org/10.1016/j.obhdp.2018.01.003
5 Chun, J. S., Brockner, J., & De Cremer, D. (2018). How temporal and social comparisons in performance evaluation affect fairness perceptions. Organizational Behavior and Human Decision Processes, 145, 1–15. https://doi.org/10.1016/j.obhdp.2018.01.003t Assessment (LCIA).