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What if we killed the performance appraisal?

It seems everyone hates the annual performance review.

Managers hate writing them. Employees hate receiving them. Human resource pros hate chasing managers down to do them and talking to unhappy employees about their appraisals. Why do we even bother?

The goal of the performance appraisal, I think, is two-fold:

  1. Have an ongoing discussion with the employees about their performance – what they’re doing well, and where they need work.
  2. Have written documentation of employee performance, for promotions, discipline, and so on.

The traditional performance appraisal seems pretty ineffective at achieving either of those goals.

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Does pay for performance work?

Yesterday’s post on pay for performance – and Dan Pink’s Ted Talk – generated some lively discussion in the comments section.

Based on some of the comments, and the discussion that followed, I think I may not have been as clear as I could have been in my post.

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Pay for performance doesn’t work

There’s a mismatch between what science knows and what business does.
- Dan Pink

In his recent presentation at TED, author and business consultant Dan Pink talked about two things I advocate heavily on Renegade HR – data based management and intrinsic motivation (and inspiration).

In the talk, Dan blows apart the notion of pay for performance as a way to increase employee performance. In fact, he says, pay for performance actually hurts performance for most tasks.

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