Employee performance review is an indispensable aspect of organisational success, serving as a key compass for growth and development within a company. Traditionally, performance reviews have been a cornerstone of HR practices, providing a structured framework for evaluating individual contributions, setting goals, and identifying areas for improvement. However, modern workplaces are now witnessing a shift from mere accountability to fostering a culture of continuous learning and development. This shift highlights the importance of performance reviews not just as a tool for assessment, but as a reflection of the organisation’s commitment to employee growth and success.
Identifying the need for change
Committed to nurturing employees’ growth, overall development, and well-being, Razorpay has embarked on a journey to redefine the performance review landscape. The decision to overhaul the performance management system came after a period of introspection, fuelled by internal surveys and extensive discussions with employees and people managers to identify strengths and development areas in the existing system. An internal survey revealed that the organisation was investing approximately 5,000 hours annually in calibrations, necessitating a shift towards a more forward-looking and developmental approach.
What emerged was a clear consensus: the existing process, while well-intentioned, was bogged down by paperwork and a lack of meaningful feedback.
Armed with these insights, Razorpay’s leadership set out to reimagine the entire performance management framework. The goal was simple yet ambitious: to shift the focus from ratings and numbers to rich, two-way feedback conversations that fostered the growth and development of all Razorpay employees.
The timing couldn’t have been better. With Razorpay’s recent acquisitions, which include BillMe, Poshvine, Curlec, and Ezetap, the integration into the revamped review process has been seamlessly orchestrated. This strategic move underscores Razorpay’s commitment not only to its existing employees but also to its acquired entities, reflecting the company’s core values and culture across the entire organisation. Merging and streamlining such processes is no small feat, particularly considering the diverse cultures, values, protocols, and processes that may vary from company to company. Imagine the complexity of integrating eight acquired companies, each with its unique identity, into one cohesive unit! But by implementing one tool used across all companies, Razorpay is creating a fully integrated global process, streamlining operations and ensuring consistency.
Through collaborative efforts and extensive consultations with acquired entities’ leadership, Razorpay ensured that the new performance management guidelines were tailored to meet the needs of all stakeholders.
The revised process underwent meticulous planning, involving brainstorming sessions with founders, CXOs, and the next level of leadership. This approach ensured that the changes not only addressed current gaps but also prepared the organisation for future scaling in India and globally while preserving its core philosophy and culture.
The transition to a forward-looking approach
The new process that has taken effect from the mid-year review of September 2023, limited detailed reviews to once a year, reducing paperwork and emphasising continuous feedback.
Although managers will still conduct thorough assessments during the annual cycle in March, the objective is to encourage regular feedback through mid-year touchpoints, promoting continuous improvement discussions regarding career progression and job expectations. Each Razor will undergo evaluation by peers, stakeholders, and managers based on the six cultural values of the organisation, which forms an integral part of the company’s performance philosophy. Moreover, the company has implemented a comprehensive 360-degree feedback process. This process includes self-review, feedback from peers and stakeholders, as well as input from direct reports and managers.
Separating performance discussions from increments and bonuses, Razorpay aims to foster a culture of continuous improvement and meaningful dialogue.
“We believe that the traditional performance review process was not keeping pace with the evolving needs of our dynamic workforce. By reimagining our approach to performance management, we are not just changing a process; we are fostering a culture of continuous learning and growth. It’s about embracing change as a catalyst for innovation and excellence. Our goal is to empower every Razorpay employee to reach their full potential and contribute meaningfully to our collective success,” said Chitbhanu Nagri, Senior VP, People Ops, Razorpay.
Objectivity in ratings and opportunities for advancement
Razorpay also introduced a more objective rating scale, aimed at providing clarity and transparency to employees about their performance standing. The new scale replaced the ambiguous distinctions of the past, making it easier for managers to assess and reward performance.
Furthermore, peer feedback, once confined to annual reviews, became a continuous process, providing real-time insights and opportunities for growth.
Setting the stage for a brighter future
Transparent communication about these changes is paramount. Razorpay has organised nine orientation sessions, spanning 14 hours, to disseminate information and align all employees with the evolving performance management philosophy. These sessions aim to create a whirlpool of positive impact with the Razors, fostering understanding and buy-in for the new processes and goals.
As the organisation gears up for the implementation of the new performance management system, it has become clear that this was more than just a procedural change. It was a reflection of Razorpay’s commitment to its employees’ growth, development, and overall well-being.
