Employers increasing standards for employee performance reviews to cut costs

Many large firms, like Google, Salesforce, and Goldman Sachs, are instituting tighter employee performance review criteria. Their goal is to remove people who do not fulfill standards and to cut the growing labor expenditures.

Amazon, Goldman Sachs, Google, Meta, and Salesforce are altering their performance evaluation methods to line with the present economic context and increasing business requirements. One key goal is to highlight concrete contributions to the company’s growth. Amazon, for example, has a somewhat mysterious performance review method in which managers evaluate corporate employees based on the company’s leadership ideals, performance, and future potential.

Companies are raising the bar for performance evaluations in order to make them more than just a list of job descriptions. In a blog post for McKinsey, Michael Birshan, Roel Hoyer, Alex Katen-Narvell, and Dana Maor recommend that employers integrate organizational development goals with individual ambitions, be clear about business priorities, and keep messaging in mind when making performance review modifications.

Workers that earn negative performance ratings engage in Focus and Pivot coaching programs. Googler Reviews and Development, a new performance review system, was implemented in May 2022. Facebook CEO Mark Zuckerberg’s “year of efficiency” is having an effect on all aspects of the business, including performance appraisals. Salesforce CEO Marc Benioff expressed discontent with the company’s productivity in January, claiming that it has deteriorated since 2020.

The sources for this piece include an article in Yahoo.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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