Nothing can kill employee morale more than a corporate performance review. Nothing can kill leadership morale then having to give them. It doesn’t have to be this way and I have a very simple solution.
The critical mistake that most mid to large sized companies make is that they confuse dollars with performance. Dollars are an economic scarcity – there are only a limited amount of them available and they must me applied judiciously when it comes time to offer raises.
Performance is not. In great companies performance is in abundance – it has no limits. It is absolutely possible that everyone on your team has done an outstanding job this past year yet due to the economic of the situation you may be forced to declare 10% of them “underperformers.” Sound familiar?