The times have changed and so have the way we need to approach an employee evaluation. This article is going to discuss the reasons why performance ratings are no longer working, and what you can do instead.

5 Reasons Companies are Ditching the Performance Ratings Scale

1. Social Stigma. Our brain reacts intensely to a ratings scale naturally, causing us to believe it is influenced by popularity, status, fairness or even physical looks.
2. Inhibiting Collaboration. When promotions and raises are involved, top ratings can’t be given out to everyone. According to Microsoft, when they removed ratings from their performance reviews, employee collaboration sky-rocketed.
3. Inability to Measure Work. A ratings scale that measures performance does not take into account the work that caused the final result.
4. Deferring Talent & Retention. Discussing an employee’s performance on a regular basis rather than once a year eliminates surprises, which can decrease turnover.
5. Slow Development. Receiving a ratings scale as your feedback can become open to interpretation, leading to slow and minimal development.

Making The Change

Flaggers4Hire is a leader in staffing solutions with over 40 years of experience in the staffing industry. We are staffing pros focused on matching the right employee to the right jobs.