Reader's Question: I work for a large corporation that has a performance management system where only a certain percentage of people can get the highest ratings. Two years in a row, my manager (and her manager) have agreed that I should receive an "Exceeds Expectations". This rating is associated with a higher raise and a higher bonus amount.
Two years in a row, this rating recommendation was downgraded by those above them to "Achieves Expectations". I was told this wasn't personal; it's just the numbers. (Susan adds: In similar systems, only a certain percentage of employees can rank in each numeric rating category.)
I work in a sales environment where the top sales people automatically get the highest ratings. I also don't report directly to the VP (and I assume those who do have an easier job of getting the rating they deserve). My reviews both years were glowing. Written on them were my manager's comments that she recommended I receive an "Exceeds Expectations" rating. Two years in a row, it was downgraded.
I feel very badly about working for a company with this type of performance appraisal system. When I asked my manager what more I could do to get to keep the rating they submitted for me, she told me, "nothing." There is nothing more she can do either. She can't get blood from a stone.
As an employee, I cannot see any benefit for a company in having a system like this. If someone does have good people, they should be able to rate them as such. If they have many good people, then all the power to them. The good people should be rated accordingly and they've done their job as hiring managers well.
Are there other companies with this type of system that you know of (this is my first experience with this)? Why do they have systems like this? How would you go on being the top performer, that you know you are, when the rating system is so unfair? Any words of wisdom would be appreciated.
My Response: If you read through my materials on performance appraisal and ranking systems, you know that I totally disagree with them. They are a method used by companies to contain costs and falsely limit the availability of high ratings, a practice of which I also disapprove.
Philosophically, proponents of such a system, which usually includes a percentage factor that specifies the percentage of employees who may attain each rating, would argue that it makes performance raters more discerning. Only exceptional employees are highest rated and unexceptional employees fall to the bottom of the rankings.
They might also say that such a system makes certain that true differentiation of performance is expected and rewarded. (As a new proponent of rating and ranking, one 30,000 employee division of a large corporation found that 96% of its employees had received the highest rating prior to the new system which divided level of rating by: 10% - exceptional, 15% - exceeds expectations, 60% - meets expectations and 15% - below expectations.)
I don't know what more I can say. Many companies do this, to their detriment, in my opinion. All I can suggest to you, since you don't appear to be in a position to affect the performance appraisal system, is that you stealth job search to find a company that lets your obviously many talents and contributions be rewarded as they deserve.
Consider talking with your manager about using more specific and quantifiable examples of your contributions and efforts on the appraisal document - the piece I have often observed is missing - in a competitive employee ranking exercise.
If your company has a method for soliciting employee input, you might give yours about this performance appraisal process. But, if your manager is unable to impact the final decisions, in competition with all of the other managers for their employees, there is not much more that you can do.
I am going to post this question anonymously on my site to see if we get any other feedback. Your thoughts?
Image Copyright James Tutor
More About Employee Performance Appraisal
Susan, if you do not motivate me, and just dish out the cash from the till, I doubt I will stay in your business for long. Honest. I need soup occasionally for my brains and that is a pat on the back. Darwin? No. I do not believe in him. Why? Out of religion and choice. Yes madam, “If I only had a brain”
You probably recall how the Scarecrow wistfully sings to Dorothy about what he wants most from the Wizard of Oz. And Dorothy sings back to him: “With the thoughts you’d be thinking’ you could be another Lincoln if you only had a brain”
The Tin Man wanted a heart. And the Lion pined for courage. But without a brain, you’d have neither heartfelt emotions nor basic courage. Not to mention the intelligence you need to get through life.
I thank you. Firozali A Mulla DBA
My current job is in the human service/respite field. In late 2009 I went for my annual review, where I also exceeded expectations (and in many places received a 5/5) in a variety of skill areas. My team leader was very happy and sent the review over to the executive director, who sent it back saying she had to “downgrade” me because “there’s always room for improvement” (her words, not mine). So all those 5’s I got became 4’s and I really took it as a slap in the face – no matter how good you are, you’re not “good enough”- and since then not only has my quality of work degraded, but I found a second job and will be making the transition to full time there. If my talents aren’t appreciated at this job – well, my *new* boss at my *second* job seems to think quite highly of them.
Years ago (early 80’s) I was in a similar position There were three QA clerks in the department and the supervisor thought all of us did an exceptional job, but the director of the department felt he needed to put more of his resources into raises for the engineers and us girls would be happy with whatever we got. So the supervisor explained to each of us in our review that each year he would rank one of us as 1, one as 2 and one as 3. He would rotate this ranking each year, so every three years we could expect the higher raise and of course, every three years we could expect the lowest raise. Of course, he wasn’t supposed to tell us this and the result was that within ONE year, two of us had moved to different departments. They were very distressed – we pushed a lot of paper and created some very visible weekly reports – oh well. – boo hoo to them.
Unfortunately, I’ve worked in lots of companies since then who use the same methods. I’ve even worked for a manager who deliberately lowered ratings on her direct reports in order to save more money for her own raise.
We wrote an article here a few years back about what we were calling Talent Science – a decision science for Human Resources. One of the critical pieces of research behind that was how much forced ranking removed valuable data from understanding the state of your talent asset.
The most amusing comment was the comparison to financial metrics – imagaine if you normalized financial reporting every year so that you always showed the same profit.
In a situation where performance appraisal is used primarily for promotion, salary raise etc, such a thing is bound to happen because employers will always desire to maximise profit and this notion when transferred to other executive, they tend to have same belief. This is no doubt will be inimical to overall business performance which is a product of overall employees’ performance which congruently is a function of employees’ ability and motivation; this they must know. I will advise all those that practise such unethical act to know that you cant eat your cake and have it again. The HR officer is such organisation should organise training on effective performance management system that centres on objectivity, they will then see the multiplying effect in the performance of their staff.
I have been in HR since 1973 and must honestly say that I am yet to see a performance review/ appraisal/ management system that works. Those that seem to work do so, not because of the system, but in spite of the system. I would love to see a system that works and do so over an extended period of time. We should rather build on our strengths and team up with others who’s strengths can compensate for our weaknesses, thus creating High Performing Teams and pay them well.
It is soooo very simple. “If you do not value me, you do not get to have me as an employee.” You will not change their thinking, after all, they benefit from this system, not you. Quietly find a new job that appreciates you. You deserve it!!!!!
We believe that Management By Objectives helps in achieving a quantified approach to performance evaluation but unfortunately our Suprvisors do not belive in this from the core of their heart. It is the reason that when it comes to actual evaluation at year end , they start finding an excuse to downgrade your performance on one pretext or the other. Most of the times they start thinking to justify their ratings in view of achieving a balanced Normal Distributrion curve, which may not project true employee profiles in case iof high-value organizations.
That’s a real issue in companies nowadays. Thanks for raising it!
In many companies the pay raise recommendations do not equal the amount of money available for those raises because upper management bonuses take a huge chunk of the money.
I work for a small non-profit organization. As Executive Director, I have refused a pay raise for two years in order to fund raises for the hourly staff. Maybe if more CEOs, Presidents and VPs would send their bonuses back to HR, there would be money to fund pay raises to those in the lower echelon of the company.
Evaluations are merely perceptions and perception is not always reality.
When I was in the military years ago I had an annual performance report downgraded by 1 point in each category because my superior “didn’t believe anyone deserved a 9″ (except herself, of course!). I missed out on a promotion by 1/2 point because of this. It was only one factor, but a major one, in my decision not to re-enlist later.
Well same situation I’m facing now a days – here, people with the same designation are relaxed and doing nothing more then me. But, they are getting promotions and good ratings. But, even giving more effort and more time which management already knows but…