“Rating and ranking engender competition, not collaboration” – Esther Derby, An Alternative to the Yearly Performance Review

I always felt annual performance reviews existed for disconnected management to reinforce hierarchy. To know that their prime purpose (in employees’ minds) of securing an individual salary increase actually incents people to not collaborate is doubly disheartening.

Compare this individual-focused structure against a work environment where: everyday at 10am the entire team, manager and all, meets for 15 minutes to review the previous day and prepare for the current day.

That simple, regular, act promotes collaboration among the team members and an engaged, connected manager.

In this new world, how do you determine an individual’s salary? The same way you did originally, compare what they’re doing against the market.