I have a direct report who failed to maintain a satisfactory rating in their EOY review. How do or would you navigate that conversation when they feel completely undervalued and are worried about the amount of their yearly bonus?

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Get into why they got that rating and how they can work to fix it. Their feeling undervalued is a tough one. They need to communicate what they need to be valued. Not meeting satisfactory is a bit of a lose-lose.

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Are you able to loop in HR? Sometimes those conversations are easier with HR because they know what to say and how to phrase it. I also agree with the comment above that discussing your rating and ways to improve would be a good approach.

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I looped in HR and we're good 😊

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