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SAP latest big firm to junk appraisals

Friday, August 12, 2016 - 01:30

Europe's biggest software company has become the latest major corporation to ditch graded performance appraisals, once championed by famous business leaders as the key to better productivity. Julian Satterthwaite reports.

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It's a day that few people at big companies look forward to: the annual appraisal. But now it might soon be a thing of the past. German software giant SAP becoming the latest big firm to say it's doing away with yearly assessments. SOUNDBITE) (English) REUTERS TECHNOLOGY CORRESPONDENT, HARRO TEN WOLDE, SAYING: "SAP thinks that they way they are doing it right now is not in line with the speed of the business as it is progressing at the moment. They say projects are faster and they need to check in with their workers on a more regular basis," Besides talking to employees more often, SAP can also adjust their goals more often. It's also doing away with ratings: SOUNDBITE) (English) REUTERS TECHNOLOGY CORRESPONDENT, HARRO TEN WOLDE, SAYING: "It's the experience of SAP and also other companies, that by rating a person they tend to be not open to constructive criticism and by just getting in this ongoing dialogue they can improve productivity and also waste less time of management." SAP not the first to get rid of appraisals. It joins Adobe, IBM and even General Electric - the firm generally credited with inventing the annual appraisal system. Employees everywhere may hope that their company is next.

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SAP latest big firm to junk appraisals

Friday, August 12, 2016 - 01:30