Goldman To Overhaul Employee Review System In A Bid To Calm Nerves - Reports

(RTTNews) - Goldman Sachs (GS) is changing the way it reviews the performance of its some 36,500 employees, media reported Thursday, citing two company wide memos.

The bank, considered to be a forerunner in formulating employee compensation policy, is looking to scrap a system that rated employees on a scale of 1 to 9. The system is considered to grind down employee morale. Instead, the bank is contemplating adoption of a review system focusing more on strengths and weakness.

The bank is reportedly experimenting with an online system, which will serve to provide and receive continuous feedback regarding employee performance in a more timely manner.

As per the memos, Goldman staffers in internal surveys requested more frequent and constructive feedback.

Edith Cooper, the bank's global head of human capital management, reportedly stated that the bank will now focus on giving employees specific directives on improving their work rather than grading their previous year's performance.

Goldman follows other large companies, which have shifted recently the way they track and grade workers' performance.

Accenture PLC recently scrapped annual performance reviews, and opted for more-frequent check-ins between managers and employees. General Electric Co. is also testing a similar system. Gap Inc., Adobe Systems Inc. and Microsoft Corp. have also reportedly abolished numerical ratings.