PERFORMANCE MANAGEMENT FOR TECHNOLOGY COMPANIES

Performance management for teams that reorganise every quarter.

Technology companies popularised OKRs, peer feedback and calibration, and they change their structures often. An engineer may work in a squad led by a product manager, take technical direction from a staff engineer and report to an engineering manager. This page explains how the sector runs performance management, with examples you can adapt.

HOW THE SECTOR WORKS

How performance management works in technology companies

OKRs set direction, and are kept apart from ratings

Objectives and key results are usually set each quarter at company and team level. Most guidance, and most experienced practitioners, advise against scoring individuals on OKR attainment. When a rating depends on hitting a key result, people set safe targets and the method stops working. OKRs explain what the team was trying to achieve. The review then asks what the individual contributed to it.

Career ladders define what good looks like

Engineering, product and design teams publish levels with expectations for scope, technical skill, collaboration and leadership. Many offer parallel routes for managers and senior individual contributors. A review compares someone’s work with their level, and a promotion case shows sustained performance at the next one. Where ladders are vague, reviews drift towards visibility and confidence, which disadvantages quieter engineers and people working remotely.

Peer feedback and calibration do the heavy lifting

Because a manager sees only part of the work, reviews lean on written feedback from peers, product partners and tech leads. Calibration sessions then compare ratings across teams to keep standards consistent. Both can become expensive. Companies that keep the cost down ask for fewer, more specific peer reviews, gather feedback through the year and limit calibration to the cases where managers disagree.

Output metrics mislead

Lines of code, tickets closed and commits are easy to count and easy to game. Delivery measures such as deployment frequency and lead time are designed for teams and systems, and lose meaning when applied to a person. Good reviews describe impact in words: the incident that was handled well, the design that unblocked two teams, the junior engineer who was mentored to independence. After a re-organisation, the record needs to follow the person to their new manager.

THE RHYTHM

The performance year in technology companies

A typical pattern. Your own calendar, agreements and policies come first.

  1. Each quarter

    OKRs set and scored

    Team objectives agreed and graded openly. Used for learning and planning, not individual ratings.

  2. Weekly or fortnightly

    1:1s

    Priorities, blockers, feedback and career. Notes shared between the manager and the engineer.

  3. Through the year

    Feedback after milestones

    Ask for peer feedback after a launch, an incident review or the end of a project, while it is specific.

  4. Twice a year

    Review and calibration

    Self-reflection, peer input and a manager assessment against the ladder. Calibration across teams.

  5. Annually or twice a year

    Promotion and pay

    Promotion cases judged against the next level. Pay reviewed using market data and performance.

IN PRACTICE

Performance management examples in technology companies

Three illustrative scenarios showing a goal, the evidence that informs it and the conversation that follows. Adapt them to your own roles.

Illustrative example

Senior software engineer

The goal
Lead the migration of the billing service and grow towards staff-level scope.
The evidence
The design document, incident history, feedback from the product manager and two engineers on other teams.
The conversation
The engineering manager and the tech lead both contribute. They agree the migration shows staff-level design, and that cross-team influence is the gap to work on.
Illustrative example

Product manager

The goal
Improve activation for new accounts and build a stronger working rhythm with design and data.
The evidence
The team’s OKR results as context, stakeholder feedback and the quality of three decision documents.
The conversation
The key result was missed. The review credits a well-run experiment that disproved the original idea, and rates the work on judgement.
Illustrative example

Customer support engineer, remote

The goal
Reduce escalations to engineering by improving diagnostics and writing up recurring issues.
The evidence
Escalation trends, knowledge-base articles, and recognition from engineers and customers.
The conversation
The manager, based in another country, relies on feedback gathered over six months. The review leads to a move on to the engineering ladder.
THE VIEW FROM HR

What HR leaders in technology companies wrestle with

Illustrative voices. New Dynamics wrote these composite perspectives to reflect themes that are common in the sector. They are not customer testimonials, and the names do not refer to real people.

We re-organised three times in eighteen months. People kept starting again with a manager who knew nothing about their last year. The record has to follow the person.

OliviaHR Director, software scale-upIllustrative voice

The first time we tied bonuses to OKRs, every target was hit and nothing ambitious was attempted. We separated them the next quarter.

DanielVP People, fintech platformIllustrative voice
WHERE NEW DYNAMICS FITS

New Dynamics for technology companies

New Dynamics connects goals, feedback, recognition and reviews in one place. Bring a real process to the demo, and confirm each requirement with the team.

A shared direction. A clear next step.

See how team priorities, individual goals and key results could come together in the New Dynamics workspace.

Try the interactive preview
A goal workspace with aligned priorities, key results and progress, shown in the New Dynamics desktop interface.
A goal workspace with aligned priorities, key results and progress, shown in the New Dynamics mobile layout.
Explore goals & okrs

Your questions, answered.

Should OKRs be linked to performance reviews?

Most OKR guidance recommends keeping them separate from individual ratings and pay. Linking them encourages safe targets. Use OKRs as context for the review, and assess the person’s contribution, judgement and behaviours against the expectations for their level.

How often should tech companies run performance reviews?

Twice a year is common, supported by weekly or fortnightly one-to-ones and quarterly goal setting. Some companies run one full review and one lighter check-in. The right answer balances timely feedback against the time a cycle takes from product work.

How do you measure a software engineer’s performance?

Assess impact, technical quality, collaboration and growth against a published career ladder, using examples and peer feedback. Avoid individual output metrics such as lines of code or tickets closed. Team delivery measures are useful context, not individual scores.

Can New Dynamics handle matrix reporting and frequent re-organisations?

Multi-manager relationships and configurable workflows are central to the platform’s design. Bring your team structure, ladder and review cycle to a demo so the fit, and any integration with your HR system, can be confirmed.

OTHER SECTORS

Performance management in other industries

Bring out the best
in your people.

See what performance management could look like for your organisation.

Book a demo