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A competency based performance review provides you with a structured framework to evaluate your employees' skills, behaviors, and capabilities against predefined competency standards. This approach moves beyond traditional task-focused assessments to examine how your employees demonstrate core competencies such as leadership, communication, problem-solving, and technical expertise. Under New Zealand employment law, particularly the Employment Relations Act 2000, you must conduct performance reviews in good faith and ensure fair treatment of all employees throughout the evaluation process.

When do you need this document?

You need a competency based performance review when implementing formal performance management systems, conducting annual or periodic employee evaluations, or establishing clear performance standards aligned with organizational goals. This document becomes essential when you're managing diverse teams requiring consistent evaluation criteria, supporting employee career development through structured feedback, or addressing performance concerns that require documented evidence. Organizations undergoing restructuring or implementing new competency frameworks also benefit from this systematic approach to performance assessment.

Key legal considerations

Your performance review process must comply with the Employment Relations Act 2000's requirements for good faith dealings, meaning you must act honestly and openly with employees throughout the evaluation process. The Privacy Act 2020 governs how you collect, store, and use performance data, requiring you to inform employees about data collection purposes and ensure secure storage of review documentation. Under the Human Rights Act 1993, you must ensure your competency assessments are free from discrimination based on protected characteristics such as age, gender, ethnicity, or disability. Any safety-related competencies must align with the Health and Safety at Work Act 2015, particularly when evaluating roles with specific safety responsibilities.

Legal requirements in New Zealand

New Zealand law requires you to provide employees with reasonable notice of performance reviews and clear information about evaluation criteria and processes. You must maintain confidentiality of review results and provide employees with access to their performance documentation upon request. The Employment Relations Act 2000 mandates that any performance-related employment decisions must be procedurally fair and substantively justified based on documented evidence. If your workplace includes union members, you may need to involve union representatives in the review process according to collective agreement terms. Documentation must be retained in accordance with privacy legislation and employment record-keeping requirements, typically for a minimum of six years following employment termination.