HRSINGAPORE Community Discussions
Are More Organisations Discarding Performance Ratings?
In a article posted on HBR, the author claims more and more companies are no longer using ratings or ranking e.g. 1-5 when carrying out performance appraisals and instead emphasising the performance-related conversations between managers and their teams.
REPLIES & COMMENTS
I think many companies will be happy to do away with the ratings. However, what was not shared so far was how did those companies then decide on merit pay which is most companies now base on the ratings. That will help many companies to decide if they will scrap the performance ratings.
We are keen to find out more from those companies who have already done away with the rating. We are still working on KPIs and performance ratings, which we find is still the fairest to reward our employees based on these ratings at this moment.
For non-executive positions, ratings are relevant, however, for executives, a combination of
both score-rating and objectives-based appraisal will be helpful.