Microsoft drops its well-known employee rankings system

Ranking performance reviews have been a common HR practice, but HR software solutions can build a more comprehensive strategy.

Ranking performance reviews have been a common HR practice, but HR software solutions can build a more comprehensive strategy.

Every year, managers and human resources departments have to determine if the company made the right choice on hiring specific employees. While these meetings have proven to be valuable, many companies have used Microsoft's employee ranking system, Businessweek reported.

Adobe Systems Inc. and Expedia are a couple of the many major businesses that have said they used Microsoft's scoring strategy to see who fell on which part of the bell curve of workers, but the use  of this platform is no longer effective.

Due to unpopularity of "stack ranking," these companies—including Microsoft, have dropped this methodology altogether–while Yahoohas taken it a step further, according to the International Business Times. Numeric ratings from a collection of categories are counted together to determine if the staff has met the business' expectations.

Then, the worker was supposed to take their average and place it on a base of some employees who were of poor level, "even if the managers did not consider the employee to be unsatisfactory at their jobs," IB Times contributor Thomas Halleck writes. {This description seems unclear to me}

In Yahoo's program, all managers are told to discuss all of their ranking decisions during their own quarterly review, an anonymous Yahoo worker mentioned to the source. Performance reviews have been around for many years, but businesses are beginning to think there are other ways to decide if an employee is still valuable to the organization.

Human resources departments that want to implement a similar or new performance strategy can create their own platform with HR software solutions. The program can scan responses from current hires to see if the measure is worth keeping or changing, without putting too much pressure on individuals.