You may never have a formal sit-down performance review with your boss again! That’s because the old school method, of rewarding top employees and firing the bottom employees, is getting phased out. Critics say it’s bad for business, it turns coworkers into competitors, fires perfectly qualified workers, and doesn’t motivate the people who need it most.
So, how are companies evaluating employees now?
First: They’re ditching formal reviews for frequent, quickie ones. Employees today want instant feedback, and don’t want to wait a year for a review, so, a lot of companies are having managers meet with their employees a few times a month to give feedback. And those quick meetings prevent any bad behavior from building up and keeps people focused on their goals.
Then, companies are letting employees find their niche. It costs roughly $10,000 to train a new employee. So, since big bucks are at stake, a lot of companies, like Facebook, aren’t replacing underperforming employees. Instead, they encourage employees to move into positions that better match their skills. For example, say a salesperson isn’t pulling their weight. Maybe it’s because they’re terrified of closing the deal! Maybe they’d be better off in an administrative position, where they don’t have to pressure people to buy, so if they’re moved, instead of fired, it’s a win-win move for the firm and the employee.
And, instead of booting underperformers, companies are giving them a second chance. For example, at General Electric, struggling employees are given an action plan with a list of objectives, and a strategy to achieve them. Then, managers check on their progress every few weeks to make sure they’re on track.