Why More and More Companies Are Ditching Performance Ratings

A few years ago, I noticed around half a dozen courageous companies beginning experiments to remove ratings from their performance management systems. Companies such as Juniper and Adobe stopped giving people a one-to-five rating or evaluating employees on a “performance curve,” also known as the “forced ranking” approach. They were still differentiating performance in various ways, and still using a… Continue reading

High-performing staff receive twice average pay rise

Pay differentiation – the varying of pay rewards for staff – was found in 93 percent of firms responding to recent research. According to the survey of 124 UK firms by professional services company Towers Watson, staff singled out for higher salary hikes and bigger bonuses were identified as ‘high-performing,’ receiving average base pay rises 67 percent larger than their… Continue reading

7 Myths of Executive Compensation

  “Executive compensation may be the lightning rod for shareholders in the wake of the financial crisis, but the truth about how pay should be structured is clouded by a lot of popular myths,” says David Larcker, who is James Irvin Miller Professor of Accounting and Director of the Corporate Governance Research Program at the Stanford Graduate School of Business.… Continue reading

How to Lead When You’re Not in Charge

For all of the books (thousands) written on leadership, individuals (millions) who have participated in leadership seminars and dollars (billions) invested in leadership development, too many leadership experts still fail to distinguish between the practice of leadership and the exercise of bureaucratic power. In order to engage in a conversation about leadership, you have to assume you have no power… Continue reading

Give your employees negative feedback to improve efficiency

It’s never easy giving people negative feedback, but it’s required, in the interest of bringing out the best in employees. According to research by Columbia University’s Aylet Fishbach and Stacy Finkelstein, negative feedback improved efficiency, more so in people who had been at their jobs a long time. “I had a bright young team member who was almost too cocky… Continue reading