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Business

SAP joins trend to junk worker appraisals

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Opening sequence

Business

SAP joins trend to junk worker appraisals

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COMING UP:SAP joins trend to junk worker appraisals

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00:00:00
>> It's a day that few people at big companies look forward to, the annual appraisal. But now it might soon be a thing of the past. German software giant SAP becoming the latest big firm to say it's doing away with yearly assessments. But Reuters technology correspondent Harold Tanwaldi in Frankfurt says it's not about being kind to workers.
00:00:20
>> It's the experience of SAP and also other companies, that by rating a person they tend to be not open for constructive criticism. And by just getting in this ongoing dialogue, it can improve productivity but also waste less time of management.>> Besides talking to employees more often, SAP also wants to be able to adjust their goals.
00:00:53
It's also doing away with ratings.>> SAP thinks that the way they are doing it right is not in line with the speed of the business as it is progressing at the moment. They say projects are faster, and they need to check in with our workers on a more regular basis.
00:01:14
>> SAP not the first to get rid of appraisals. It joins Adobe, IBM and even General Electric, the firm generally credited with inventing the annual appraisal system. Employees everywhere may hope that their company is next.