Goldman Sachs is known for ranking employees on a scale from one to nine to evaluate performance. That practice appears as if it will be abolished, according to company memos.
Starting this fall, Goldman will begin using an online system for performance evaluations, in which employees can give and receive continuous feedback on their performance. The idea behind the proposal is to give employees more specific and streamlined directives for how to improve their work, as opposed to a less friendly and personable approach.
This approach of not branding an individual with an all-encompassing number that all but determines their fate for the entire year is catching on across other companies across sectors.
Goldman Sachs’ 360-degree annual review, which allows an employee to solicit feedback from their manager and a handful of colleagues, appears as if it will stay. The new and incumbent ways in which to evaluate employees will continue to play a large role in determining any employee bonuses or promotions.
Per the memos, Goldman will employ no more than six reviewers for each review. The previous maximum was 10 reviewers per each individual employee evaluation. Reviews will also be conducted earlier in the year in order to allow employees more room for improvement before final decisions regarding compensation and advancement are made.
These changes are part of many on Goldman Sachs’ behalf during the past few months. Late last year it was announced that the promotion path for the best-performing analysts would be accelerated, while grunt work given to younger employees would be reduced.