A recent survey by HR Executive magazine of 156 HR people showed the often obvious flaws in the performance rating process as it is done today.

Everyone but 7% in the organizations responding to the study met or exceeded expectations!

We all agree that positive feedback is more motivating than a negative performance report, but to say that 93% of the employees at these organizations are exactly on track or performing better than average seems a little unrealistic to me.

The major flaws reside in the fact that we link performance ratings to compensation. Nobody want to hear about their weaknesses if it means they are to be paid less! The second reason is the fact that we don’t like confrontation and presenting negatives in front of colleagues.

With 72% of performance management not yet automated, we see this as an opportunity to improve and integrate a tool into the talent process that could deliver much more business value.