Google’s decision to revisit its performance management system, which includes a stack ranking approach inspired by Amazon’s model, has sparked significant debate among employees. This method involves evaluating and comparing the performance of team members against each other, with the bottom-performing individuals potentially facing consequences such as reassignment or departure from the company.
Employees have expressed concerns regarding this system, highlighting issues like morale and job security anxiety that can arise when undergoing regular performance evaluations in a highly competitive environment. Moreover, the introduction of support check-ins (SICs) has raised similar apprehensions to Amazon’s PIPs (Performance Improvement Plans), further fueling discontent among Google employees.
However, if implemented with proper checks and balances, stack ranking can still be a beneficial tool for promoting better employee performance. Key elements that should accompany this approach include:
- Clearly defining high-performance criteria tailored to each department’s needs and position requirements. This ensures fairness in evaluating employees based on specific expectations, reducing potential biases.
- Reassuring the bottom 10% of performers that they won’t be penalized for their job security but will receive support instead. A constructive approach to performance management can help improve these individuals and maintain a positive work environment.
Despite its potential benefits, stack ranking is not without alternatives or challenges in the realm of modern employee evaluations. Some alternative methods include:
- Continuous feedback: Instead of relying on annual reviews, continuous feedback involves providing regular constructive critiques to employees about their performance and areas for improvement. This fosters open communication between supervisors and subordinates without pitting team members against each other.
- Psychological appraisals: By focusing on an employee’s cognitive abilities and traits, this approach aims to develop the best use of these skills rather than just evaluating past accomplishments. This emphasizes growth and potential over performance history.
- Objectives and Key Results (OKR): A goal-setting model that incorporates primary objectives for each position along with key results tied to those goals. By setting measurable milestones, this system encourages teamwork while allowing employees to track their progress effectively.
In conclusion, stack ranking has become a controversial practice in modern workplaces, and many companies have moved away from it over time. However, certain aspects of performance management may still benefit from its structure if implemented with proper precautions. Other more effective alternatives like continuous feedback, psychological appraisals, and OKRs demonstrate the potential for improved employee satisfaction while maintaining productivity in a collaborative environment.