In a stunning reversal of policy, Microsoft announced that it was abandoning the practice of “stack ranking,” in which every employee is ranked and rated, and those with the lowest ratings are fired.
Lisa Brummel, head of human resources, said in a statement:
No more curve. We will continue to invest in a generous rewards budget, but there will no longer be a pre-determined targeted distribution. Managers and leaders will have flexibility to allocate rewards in the manner that best reflects the performance of their teams and individuals, as long as they stay within their compensation budget.
No more ratings. This will let us focus on what matters – having a deeper understanding of the impact we’ve made and our opportunities to grow and improve.
The article says,
In the stack-ranking system, Microsoft managers had to place a set percentage of their direct reports into each of five silos, ranging…
View original post 138 more words