Here's how to set up a new HR cycle

Written by Dialog | Jan 21, 2026 8:07:55 PM

The HR cycle must support employees in learning and performance. So that they contribute maximally to the success of the organization. Many organizations find that their current cycle no longer works. The annual performance review feels outdated and employees want continuous feedback and development opportunities. Time for renewal!

How do you do that? By designing a cycle that really works for your organization. Read how to do that in 7 steps.

Step 1: Make an inventory of the problems

Renewing for the sake of renewing is rarely a good idea. Start with an analysis of the current HR cycle. What isn't working? What are employees running into? A good approach: start with a short survey and supplement it with interviews or workshops. This will give you a complete picture of bottlenecks and wishes.

Tip: ask not only what is missing, but also what is working well. That way you retain strong elements.

Step 2: Establish starting points

Most organizations have a vision on collaboration and development. Use that as a basis. Important themes are:

  • Ownership
  • Transparency
  • Feedback
  • Assess
  • Personal development

These principles form the backbone of your new cycle. Establish them and communicate them clearly so everyone knows what you are working toward.

Step 3: Design together with employees

The HR cycle is for employees, so involve them in the design. Form a working group that is a good reflection of your organization.
Discuss together:

  • Which conversations are mandatory and which are optional?
  • How often do they take place?
  • What should be recorded as a minimum?

By allowing employees to think along, you increase support and ownership. It prevents the new cycle from feeling like an imposed system.

Step 4: Choose the right HR tool

A modern HR cycle without software is almost unthinkable. A good tool makes the process easier and provides insight.

Note that not every tool fits your vision. Look beyond fancy features and choose a solution that is user-friendly and fits your way of working.
Checklist for selection:

  • Does the tool align with your HR processes?
  • Is the interface intuitive for employees?
  • Does the tool support feedback and development conversations?

Step 5: Start experimenting

Don't try to work out everything in detail before you start. Start small, for example with one department. Draw up hypotheses in advance: what do you want to learn? That way you can test in a targeted way and adjust quickly.

Example: "If we link feedback to goals, employees give feedback more often."

By experimenting, you discover what works in practice, not just on paper.

Step 6: Evaluate and improve

Plan evaluation moments to check whether your hypotheses are correct. What works well? What could be improved? Use feedback from employees to further refine the cycle.
Tip: make evaluation accessible. A short pulse measurement or an open conversation often yields more than a long questionnaire.

Step 7: Roll out the new cycle

Has the new way of working been tested and improved? Then it is time to implement it organization-wide. Depending on the size of your organization, this can be a large change process or a compact session with all colleagues.

Communicate clearly why you are renewing, what is changing and what employees can expect. Provide support: training, Q&A sessions and clear manuals help to make the transition smooth.

Getting started

Want to get started right away? Download our free toolkit with e-books, checklists and a workbook to design your HR cycle step by step. That's how to make a renewal a success.