Find The Middle Ground With Performance Management That Works

There continues to be a lot of talk about performance ratings, with recent research from insight and technology company CEB suggesting that more than 20 percent of organizations are either planning to or have already eliminated these from their performance management approach, while another 30 percent are considering it.

From speaking to businesses it is evident that many are focused on reengineering performance management, even if not all of them are ready to remove ratings altogether. A lot of the hype on this topic has been driven by several high-profile companies publicly sharing how they have done away with ratings.

Certainly what neuroscience tells us about the impact of ratings on the brain makes a case for their removal. Research suggests that ratings create a number of negative responses, which impact on motivation and productivity. These include fear, and the resulting negative effects on reputation; the creation of an elite in-group; negative comparisons; and demotivation.

But this is not the whole story: although these responses might happen, simply removing the cause won’t necessarily help the situation. Eliminating ratings will not solve your performance management problems; in fact, one of CEB’s headline findings is that, when ratings are removed with little or no support to change the behavior of managers and employees, there is a drop in performance and engagement of up to 10 percent after the initial euphoria.

ETW provides a platform to track, evaluate and measure employee performance against the major objectives of the organization. Easily execute and translate long-term strategy into clear, actionable goals. With ETW you can effectively communicate the company’s roadmap to success and engage everyone throughout the organization with that roadmap. Using ETW your organization can connect employees to strategy and culture to drive sustainable winning results.

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This entry was posted in Insights