How to Update Compensation Without Performance Ratings
Reflektive
AUGUST 2, 2016
GE becomes the latest major company to remove ratings from its performance appraisal system. Earlier this year Goldman Sachs did away with numeric ratings, which are thought to have a negative impact on employee motivation. But for many companies, removing ratings puts compensation into a black box — employees don’t know how their raises and bonuses will be decided, possibly undermining the goal of removing ratings.
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