What I found out, and then later tested through discussions with other business owners is that the Employee Review process is fraught with mistrust, dishonesty and frustration.
When you start uncovering systems in an organization that are built to create alignment and fairly compensate good employees over bad, the core system is the employee review program.
Fact is, managers dislike the process, there is always confusion around job titles and description, how the company is grading and ranking employees, etc. And employees find it degrading and frustrating.
Also the number one gripe from employees is that most annual reviews are tied to compensation, but the fact is most comments on the annual review are based on the last 30-45 days of work. So if an employee has kicked butt for the 10 months, then got thrown under the bus with a bad client for two months, that employee’s review will more than likely be less impressive than if was given two months prior.
