It’s 2017 and companies are finally waking up to the reality that employee compensation should not be linked to performance ratings. The trend that started a few years back with only a few early adopters, has started to gain momentum. On a daily basis large & small, progress companies are moving away from tight-coupling of performance ratings with employee compensation.
Performance ratings are certainly not efficient at determining employee compensation. Many companies such as Microsoft, Adobe, Accenture, GE have already replaced this method with models that are more efficient at compensating employees based on their unique contributions to their teams/departments.