Employee Performance Ratings: Tainted Or Sainted?

Law360 (July 18, 2018, 12:00 PM EDT) -- Organizations want to recruit, hire and retain the best performers. Many companies use a performance management system to identify high-performing employees that they want to retain through rewards such as merit increases, bonuses or promotions, and to identify low-performing employees to target for improvement or separation.

The inherent association between performance ratings (e.g., performance ratings, objective metrics) and employment outcomes (e.g., merit pay or termination) often puts the performance management system under legal scrutiny. Whereas an evaluation of performance alone is not an employment decision, performance ratings that influence employment decisions (like pay, promotion or reduction-in-force) are subject to the same...

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