Faced with frustration and lack of results, more than four-fifths of companies (84%) are making big changes to their HR performance management systems.
What they’re changing differs but what’s certainly created the most buzz in the press has been the elimination of performance ratings, where companies grade employees’ past performance using numeric scores or qualitative labels and then usually rank them against colleagues.
While most commentary about these decisions is positive, it’s still too early to say whether eliminating ratings will do what managers want: improve employee, and so company, performance.
