Over the past several years, a seemingly endless list of leading companies have announced they are doing away with their annual performance review process. Companies likes GE, Deloitte, IBM, Gap, Adobe, and countless others have proudly dropped the practice. Even SAP, a major provider of performance management software, is ditching the annual system!
So what’s the deal?
The bottom line is that annual performance reviews have not been working well for quite a while. But up until recently, there hasn’t been a credible alternative.