Performance management for startups

Quarterly cycles fit how startups plan

Startups tend to plan in quarters, around runway and product milestones, so performance goals should follow the same rhythm. Create a quarterly cycle in ZeniaHR, add goals typed as OKR for most roles and KPI for sales, and give each a weight. Keep an annual cycle for pay and promotion decisions in April, and a probation cycle for new joiners. At 20 people, the exercise should take each manager an afternoon a quarter, not a week of forms.

Writing OKRs that survive a pivot

An objective like 'Reduce customer acquisition cost', with key results tied to specific ad channels, becomes irrelevant when the company pivots from paid ads to partnerships. Write objectives around outcomes the company will still care about, such as 'Grow paying customers efficiently', and keep key results measurable but replaceable. When a pivot happens mid-quarter, close the old goals and add new ones with fresh weights, instead of pretending the old ones still apply and marking everyone down against them.

Worked example: a growth marketer's quarter

Meera leads growth at a Bengaluru SaaS startup. Her Q3 goals are 'Add 120 paying customers' with a weight of 50, 'Cut cost per lead' with 30, and 'Launch the referral programme' with 20. At quarter end she has added 72 customers, which is 60 percent progress, fully met the cost target at 100 percent, and the referral launch is 40 percent done. Her weighted progress is 0.5 x 60 + 0.3 x 100 + 0.2 x 40, which is 30 + 30 + 8 = 68 percent. The number starts the conversation about what blocked the customer goal; it does not end it.

From goals to pay and promotions

Monthly one-to-ones of even 20 minutes catch problems early. The one-to-ones and any written feedback stay in your own format, while ZeniaHR holds each quarter's cycle, the weights and the progress numbers. Increments decided in the annual cycle are recorded as salary revisions on the employee record, so the pay history stays with the person. Everyday recognition should not wait for review time either: praise with a badge such as Problem solver or Customer first also counts towards the monthly leaderboard.

How to set it up in ZeniaHR

1. Create quarterly cycles for goals, an annual cycle for pay decisions and a probation cycle for new joiners.
2. Add three to five goals per person typed as OKR or KPI, with weights adding up to 100.
3. Close or replace goals when the company changes direction, rather than leaving stale goals in the cycle.
4. Record increments as salary revisions after the annual cycle so pay history stays on the employee record.
5. Set up praise badges, including your own, so everyday recognition does not wait for review season.

Read more about performance in ZeniaHR.

Roles this applies to

Frequently asked questions