Harvard Business Review: What Really Happens When Companies Nix Performance Ratings

harvard_business_reviewThe move away from conventional, ratings-based performance management continues to gain momentum.

By November this year, at least 52 large companies had shifted from the practice of once-yearly performance appraisals; estimates are that hundreds of other companies are considering following suit. A wide range of industries are represented, from technology (39% of the 52) to business services (19%).

At the NeuroLeadership Institute, we’ve conducted in-depth research with 33 of these 52 companies to find out what really happens when companies remove performance ratings. Here are some of our high-level findings…

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