How do you see the Performance Management and Reward System across organisations today?
AB If one observes the attrition trend closely, it is evident that it peaks around 2-3 months after the appraisal exercise. Some managers attribute this trend to employees wanting to get a raise and then change jobs to bargain for a better compensation package. This rationalization is unfair. Not all employees change jobs for higher compensation. Managers justify instead of introspecting to determine the actual cause of exits. They need to understand that employees have lost faith in the performance management system and the annual ritual of rating that also gets linked to their compensation revision.
Employees often view performance management as time-consuming, excessively subjective, demotivating, and ultimately unhelpful. In these cases, it does little to improve the performance of employees. It may even undermine their performance as they struggle with ratings, worry about compensation, and try to make sense of performance feedback....
