There is a deep divide about the value of traditional performance appraisals. The argument is one of few HR topics elevated to C-suite conversations.
Many organizations use the annual performance appraisal as a tool to inform employees of the value added by their work throughout the year. Often this is the only feedback employees receive from a manager all year.
In 1950 the Performance Rating Act was passed, mandating annual reviews of all federal employees. Over the years, both private and public sector organizations created instruments to evaluate employees and linked bonuses and salaries to these assessments.
The now-traditional performance appraisal with a rating scale, not linked to a competency model or professional development plan, does more harm than good to retain high-performing employees.…