No-Rating Structures - Performance Management Exchange
Using a no-rating structure is possible, but how is it accomplished? More importantly, why would a company decide to take the no-rating approach? In this meeting we will talk with individuals from companies that are using this approach and learn from their experiences.
Exchange members shared their experiences with similar transitions, including lessons learned and advice for those considering such a change.
Top things we explored.
Change is coming. We explored data from our What’s Next for Performance Management? survey and the pre-meeting survey to find that a small number of organizations have a no-rating structure in place, but many are looking to move in that direction within the next two years.
Target and Adobe Case Studies. Target shared their move to a no-rating structure that took place 5 years ago, which was very similar to Adobe’s approach. In both cases, they moved from one annual performance review to a few check-in conversations throughout the year. Target also shared their guiding principles and gave examples of key partners throughout the process.
Watch Target's 16-minute presentation.
Workday is the most common platform. Many companies are working on figuring out how to effectively use Workday to support their upcoming PM changes. Check out the Flash Call: Leveraging Workday in Your Talent Review Process and the Follow Up Call for more details.
Equity and transparency are paramount. Many companies consider using no-rating structures to combat bias. However, a no-rating structure does not inherently remove bias. Consider how managerial biases may impact compensation if it is tied to feedback, not a specific rating. Check out the Bias Audit Checklist for PM to ensure your PM process is more equitable.
Focus on developing a feedback culture. Consider your leaders’ capabilities to implement a new PM process. Can they ask for and give consistent, valuable feedback? It is aligned with performance, development, and career goals? Explore the Performance Feedback Culture Drives Business Impact study to find more ideas on supporting leader capability and Sears Case Study that found effective feedback is the centerpiece of a culture of accountability. Technology that members said their organization is using to support giving/receiving feedback include:
- SuccessFactors Continuous Feedback Module
- Culture Amp (Engagement Survey) Continuous Feedback Module
- Workday’s Anytime Feedback Tool
Connect with Your Peers
This has been a hot topic in the Expert Network recently. Check out the discussions below to see what's already been discussed and reach out to your peers who are exploring similar questions.
-
Ratingless Performance Reviews
Looking for any insights and experience you might have about benefits and concerns when considering going ratingless in Performance Reviews.
-
I'm looking to connect with a few counterparts who have stopped using performance ratings.
- What impacts (and unintended consequences) did you see?
- How did you approach compensation?
- Are you considering reinstating ratings (or have done so) and why?
-
Curious about how you selected your rating scale, the trade offs of having different scales (e.g. having a 3 point, vs. a 5 point, vs. a 7 point) and any best practices you've seen in this space.
log in
