HR Document

Performance Management Policy

Document Summary

Item Value

Organisation Razorpay Software Pvt. Ltd.

Document Name Performance Management Policy

Classification Internal

Created By Anuradha Bharat

Document Revision History

Reason for
Date Version Prepared by Reviewed by Approved by
Update

30
Anuradha
Aug, 1.0 Initial version NA Shashank Kumar
Bharat
2017

20 Nov Upgrade in
1.1 Sangita NA Anuradha Bharat
2018 process

Change in
performance
25 Jul Anuradha
2.0 review & Surekha M Shashank Kumar
2019 Bharat
appraisal
payout cycle

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HR Document

Purpose

The purpose of the Performance Review is to create a planning and review cycle that supports
employees in reaching their full potential and achieve their work goals:

● Help employees clearly define and understand their responsibilities

● Provide criteria by which employees’ performance will be evaluated
● Suggest ways in which employees can improve performance
● Identify employees with potential for advancement within Razorpay
● Help managers distribute and achieve departmental goals
● Provide a fair basis for awarding compensation based on merit

Apart from the professional qualifications required to be successful in a given role, we value a
number of other attributes in you like passion, sense of urgency, aggression to execution,
innovation, ownership, ability to thrive in an informal and unstructured environment, adaptability
and entrepreneurial spirit.

Performance management system is not just about us getting to know your performance; it is
just as much an opportunity for you to put forth your career goals and aspirations in a formal
and structured set up.

Scope

The performance management cycle at Razorpay is divided into the following -

1. Goal setting
2. Monthly progress review
3. Two Half-yearly reviews: April to September and October to March
4. Annual review cycle: April to March

Eligibility
This policy applies to all full-time employees of Razorpay, with the following conditions on points
3 and 4 above.
● All joinee​s until 30th June will be eligible for the half-yearly review cycle in Sep
● All joinee​s until 31st December will be eligible for the annual review cycle in March

Talent outcomes like promotions, merit increase, succession planning, and leadership
development are linked to the performance management process and is addressed during your
Annual Performance Review cycle.

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HR Document

The rating scale we follow is -

● Outstanding​: Consistently demonstrates performance that sets the standard of
excellence and exceeds the job requirements
● Exceeds expectations​: Demonstrates performance that exceeds some of the
requirements of the job, should consistently strive for excellence
● Meets expectations​: Consistently demonstrates performance that meets the job
requirements
● Needs improvement​: Demonstrates performance that requires improvement and does
not fully meet the minimum requirements of the job
● Needs Significant Improvement​: Demonstrates performance that clearly does not
meet the job requirements

All performance related discussions are captured on the HRMS.

Process

Goal Setting:

● At Razorpay, the organizational Objectives and the respective Key Results (OKRs) that
define their success are determined at the beginning of the financial year in April
● The OKRs are cascaded downwards to all functions to design their respective OKRs
● Functional OKRs will reflect in the individual goals of every employee so that all efforts
across the organization are in the same direction
● Individual employee goals will accordingly change from year to year and consist of the
following sections -
a. Competencies to achieve the responsibilities of the role
b. Measurable key results that contribute to achieving the functional OKRs

Goal Setting Monthly progress reviews Half-yearly performance

(April)
→ (Apr - Sep)
→ review
(September)

↑ ↓
Annual Performance Review Monthly progress reviews
(March)
← (Oct - Mar)

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Monthly progress review:

Every month, your Team Lead/Manager will have a 1:1 with you to help monitor your progress.
The objective of these ongoing discussions is to:
1. Ensure you are progressing in the right direction
2. Course-correct when necessary
3. Evaluate opportunities and challenges that come your way
4. Determine any training requirements that can enable your success

Half-yearly & Annual performance reviews:

As various functions collaborate on projects at Razorpay, we use the 360-degrees feedback

system during every performance review. This gives an insight to you, the manager and the
management on strengths and improvement areas for you as seen by your co-workers who
work with you everyday.

The reviews will cover the following parameters:

The respondents who will share feedback for you include:

a. Your Manager
b. Peers from your function
c. Peers from cross functions
d. If you are a Manager/Lead/Mentor, you will receive feedback from all your direct
reportees as well

Your performance review will consist of the following -

Phase 1
1. Self review
2. Peer review - mandatory reviewers will be determined by your Manager and your
respective HR Business Partners
3. Request Review - you can add more reviewers you have worked with who are not part
of the mandated reviewers
4. Reportee review (if you are a Manager/Lead/Mentor)

Phase 2
5. 1:1 discussion with Manager with the consolidated feedback received
6. Planning of goals for the next quarter/half-year

Phase 3
7. Receipt of variable pay/Appraisal letter

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The half-yearly performance review cycle will be initiated on 1st October every year, and the
annual performance review cycle will be initiated on 1st April every year.

Career Development Plan (CDP)​:-

When one of our employees shows signs of readiness for the next level or a new role, we
would like to groom them accordingly and prepare them for the complexities that the promotion
will bring. We will provide a phase of intense grooming that assigns specific goals or tasks from
the aspired role. This grooming is referred to as CDP, and the process works as below -

1. Manager indicates to the respective HR Business Partners that a team member is

showing readiness for promotion or new role
2. Manager and HR Business Partners determine the development plan and time required
for the team member
3. Manager will discuss the grooming plan with the team member and arrive at the CDP
4. At the end of the agreed time, Manager and HR Business Partners evaluate if team
member has shown adequate improvement, or if the CDP has to be extended
5. When the team member completes the CDP successfully, a promotion will be awarded
in the upcoming annual or mid year cycle as applicable.
6. If at any point, the team member or Manager feel that more time in the current role is
required before promotion or taking on a new role, the CDP might be halted for the
current cycle and postponed to a future date.

A template for your reference is available here.

CAREER DEVELOPMENT PLAN

Name: Designation/Role:
Emp. ID: Manager's name:

Team: Grooming period: (from) (to)

Objective
Steps Success Fortnightly review
S.No. Action items Involved Timeline Measure comments
1
2
3

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Performance Improvement Plan (PIP)​:-

When any of our employees is unable to meet expectations of the role – whether technical or
other competencies – we strive to help the employee improve by providing a phase of intense
guidance and monitoring. This period is referred to as PIP.

Typical indicators of this dip in performance are -

● Annual or half-yearly performance review scores of Needs Improvement or Needs

Significant Improvement. In this case, HR Business Partners will initiate discussions
with the Manager on the PIP period for the employee within 1 month of releasing the
appraisal score.
● Consistent low performance recorded by the Manager in the monthly 1:1 reviews or
metrics over 3-4 months
● Observed behavioural patterns over 3-4 months by Manager, peers and HR Business
Partners

More details on the PIP Policy can be found here.

Prepare for your Performance Appraisal

We want your review discussions to be qualitative and constructive. Here are some ​tips to help
you prepare for your appraisal and get the best out of it!

Right to modify policy

The Head of People Operations and Co-founders have the right to change, modify or approve
exceptions to this policy at any time with or without notice.

Approval

The Razorpay ISMS team is the owner of this document and is responsible for ensuring
that this policy document is updated and reviewed.

Copyright © 2019 Razorpay Software Pvt. Ltd.

  
 
 

 
HR Document

A current version of this document is available to all end users. This policy was approved
by the Management and is issued on a version controlled basis under their (Harshil
Mathur or Shashank Kumar) signature.

Name: Shashank Kumar

Designation: CTO
Signature:

Copyright © 2019 Razorpay Software Pvt. Ltd.