Can You Pay People Without Rating Them? Reconciling Performance Management Trends and Compensation Realities

The field of performance management is experiencing a transformation. This transformation is focused on creating new methods that emphasize coaching dialogue instead of performance ratings, rewarding employees more informally and frequently, and being transparent about how staffing and pay decisions are made. These new methods are helping foster better relationships between employees and managers and enabling more fair and accurate decisions about talent. But for compensation professionals, these changes can be concerning as they can directly impact processes used to allocate pay and rewards.