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01/27/2017

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I agree there are trade-offs and eventually those with no annual review will figure out a way to create a point in time overall assessment, if they don't already.

Besides the compensation area, there is the career planning area that benefits from an overall rating. If you want to even just sort your employees or candidates into different pools for succession planning or other lateral position changes, how do you differentiate them?

You can spend time reading the quarterly feedback notes (I do see benefits to continuous feedback/discussions) once you have narrowed down your search but wouldn't you rather only read the bios of the candidates who would be recommended based on performance?

Ratings could vary from the simple "meets" to a more relevant rating of "recommended" or the lengthier performance overview that takes outcomes and behaviors into account: "high results/high behaviors" vs "low results/low behaviors" along with the other two quadrants of high/low.
Especially in a large organization,it is helpful to identify the employee's performance level in summary.

As both Ann and Karen correctly observes, performance assessment is a vital part of supervision and talent management. When performance is irrelevant to compensation, the organization gets less than it pays for. How such judgments are termed, classified and communicated is more a matter of behavioral psychology than anything else, I fear.

Well said - Karen and Jim. Despite their undeniable faults and issues, it is difficult to completely remove the notion of overall performance assessment from the organization without creating at least some unintended consequences. As our friends at Facebook tell us - there are trade-offs. Best we can do is to understand them clearly and then make informed decisions about what works for our employers.

Thanks for the comments!

I agree with Facebook's decision. Performance reviews aren't outdated -- they simply need to be customized and updated to match the organization's stage of growth and current challenges. In fact, if a company isn't updating its performance review template at least every other year to reflect its newest challenges and to raise the bar, they're missing the point of the process--both in terms of the letter and the spirit of the program. -- Paul Falcone, co-author, "The Performance Appraisal Tool Kit: Redesigning Your Performance Appraisal Template to Drive Individual and Organizational Change" (AMACOM Books)

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