Participation trophies for employees?

How do you rate your employees and how often do you do it?  Annually, quarterly, or real time?  Who’s above average, who’s a potential star, who’s average, and who’s in trouble?

“Goldman Sachs to Stop Rating Employees With Numbers,” The Wall Street Journal, May 27, 2016 A1.  Goldman to do away with its 1-to-9 rating scale for employees.  Some companies worry about “grinding down employee morale” by saddling employees with a number rating.

One would think that different employees get paid differently, and that you need a process to figure out who gets a bigger bonus than someone else.  Or maybe everybody in the same employee class should get exactly the same amount, which is the equivalent of handing out participation trophies to the six-year olds on the soccer team.  But then you would need to assign people to classes, leading to the same issues. (Or avoid telling them that they are 6).

Does an employee benefit from being told where he or she is on the performance continuum?  If you rate employees but don’t tell them where they rate, why not? Should you keep this information secret from them?

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Filed under Collect, Controls, Definition, Duty, Information, Internal controls, Management, Use, Value

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