GE is reviewing whether the annual practice of making changes in compensation to acknowledge achievements and efforts of employees is the best way to do it.
The conventional annual appraisal system has been constantly under purview in many organisations; now the 124-year-old company, GE is planning to go the similar way.
A recent report suggested that the manufacturing giant is rethinking its annual appraisal system. Executives at GE are reviewing whether the annual practice of making changes in compensation to acknowledge achievements and efforts of employees is the best way to do it.
With that as a focus, the company is also looking to scrap the age-old system of rating staff on a five-point scale. While decisions on both issues may come within the next several months, the thought has already been conceived.
Recently GE also introduced a new method of performance review through a phone app called PD@GE where employees can assess both subordinates and superiors. It aims to replace a once-a-year conversation with continuing feedback.
Many organisations are rethinking and redesigning not only their talent strategies but are also working on redesigning the rewards and benefits, and flexi-working policies to attract and retain talent.
Organisations are becoming more generous in providing parental leave and work flexibility as is evident from recent updates from Airtel, Tata Sons, Sony Pictures and more. A lot of companies are also innovating with their employee rewarding mechanism and looking at larger benefits apart from the usual compensation.
Having said that, a move such as this, especially by GE will not just be a path-breaking initiative but will also bring about a positive change in the way organisations look at appraising employee efforts. GE along with Goldman Sachs and Microsoft Corp., are among employers to announce an overhaul of performance review systems in the past year.
