In an article from the April 2015 issue of HR Magazine, author Dori Meinert discusses the qualitative approaches to employee performance appraisals being chosen by many companies. The elimination of performance ratings and stack ranking of employees are developing trends highlighted in the article.
Four years ago, Adobe Systems Inc. used the type of traditional performance review system that a vast majority of companies still use. Its 11,000 employees were ranked on a scale of 1 to 4 in what one Adobe manager describes as a “soul-crushing exercise.”
Right after review time each year, the HR team saw a disturbing spike in voluntary turnover as disheartened employees—many of them good workers—left the company.