Talking compensation and promotions with your employees can be a tricky business, yet many managers make these costly (and sometimes time-sensitive) people decisions based on hallway conversations and gut feel.
Intuition — a mental “shortcut” — is the result of two hardwired processes (pattern recognition and emotional tagging), which frequently lead to cognitive errors. As a result of “going with your gut,” even the best, most experienced business leaders can make poor judgement calls about individuals.
Without analytics to back up these decisions, it’s impossible to tell if an employee is being rewarded fairly.
