Fortune 500 companies ditching annual performance reviews

(AAP) Source: File

Annual performance reviews are despised by many employees and managers, who see them as a waste of time. Now some companies are starting to agree, ditching them altogether because 'they don't work'.

From September one of the world’s biggest professional services firms will ditch annual performance reviews and rankings.

Accenture CEO Pierre Nanterme told the Washington Post that the company had been planning the shift in its management practices for some time.

“Imagine, for a company of 330,000 people, changing the performance management process — it’s huge. We’re going to get rid of probably 90 per cent of what we did in the past,” Mr Nanterme said.

The company said it would introduce a new system that was about ongoing feedback between employees and managers.

The Post reported that six per cent of Fortune 500 companies had ditched performance rankings and the number was growing.

The reason given was that all the time, money and effort spent on annual reviews failed to deliver better employee performance.

Source SBS

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