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HAPPY COMPANIES: After The Bell: The case for consigning performance reviews to the dustbin

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As the new year dawns, many people in the corporate world will have recently undergone, or are about to undergo, an annual ritual that it seems just about everyone but HR practitioners despise: the annual performance review.

Many other companies have also dropped the annual performance review, including IBM — tech companies are often cutting-edge — as well as OppenheimerFunds and others.

By contrast, the Nasdaq Composite Index, of which it is a part, has risen less than fourfold since 2012. So Adobe has outperformed the rest of the market by a long shot since it bade farewell to performance reviews. The annual performance reviews fall into this broad category because they require meetings — albeit not on such a regular basis — that contribute to worker unhappiness, and an unhappy workforce is likely to be less productive than a happy one.

 

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