“No Labels” – Pfizer’s Approach to Going Ratingless
Rob Lewis, Senior Director Organizational Capability, Pfizer
The topic of companies removing ratings from their performance management processes has been the subject of significant discussion and debate in HR and Talent Management circles over the past several years. There have been strong arguments offered on both sides of the debate over whether removing ratings is a “good idea” or not, as well as some emerging research that helps to frame the pros and cons of this type of performance management transformation. While these perspectives are helpful, it is up to leaders from each organization to examine their company’s own culture, processes, and organizational “maturity” to determine the right performance management solution for themselves.
Pfizer offers an example of one company that has gone through the journey of moving to a “ratingless” performance management process. Starting in 2014, Pfizer moved from a traditional process with performance ratings linked to year-end compensation decisions to one in which managers qualitatively review the employee’s overall performance for the year and determine compensation outcomes within a defined budget. This session will review Pfizer’s journey over the past 3 years in this performance management transformation, including some of the key success factors and learnings that have been gained along the way.
• Learn some key considerations for companies contemplating moving to a ratingless performance management approach.
• Gain understanding of how and why Pfizer transformed their performance management process.
• Learn some of the factors that have led Pfizer’s process transformation to be successful (so far), as well as the challenges encountered and how they have been addressed along the way.