Sunday, July 22, 2012

Stack Ranking - Good or Bad?

The conversation continues on whether or not ranking employees is the right thing to do in today's business world. The real question to me is does it drive employee engagement and output or does it drive stagnation, and employee malaise? Given the trend today, ranking is out of favor. Good !!

I am all in favor of doing evaluations on strengths and weaknesses but that is the extent of my conviction to performance appraisals and reviews. So why do I feel that way, not because the tide has shifted away from ranking but because it forces the manager to place people in categories or bell curves. That is down right wrong and potentially pushes the lower 20% out to door after you have spent thousands of dollars on training them and some should be continued to be invested in further development.

Since it getting to that mid-year review, how many companies are still following the ranking system? I'd like to hear your comments on this topic and what you are doing.