Do the following companies stack rank their employees and force out the bottom band? Microsoft - No Google Facebook - No Apple Netflix Dropbox Box Salesforce - No Grab Indeed Expedia - No Tableau - No Oracle BMC Amazon - Yes Airbnb - Yes PayPal - Yes Uber - No
Some leaders that were hired from Microsoft tried to bring it into Salesforce years ago; they had so much regrettable attrition that I think they learned their lesson and no one ever tried it again
Thanks for the response
But how do you divide rewards then?
Give 'em to the people who delivered the most stuff
That’s not stack ranking?
Microsoft still does it even though the say they have made improvements. It kills collaboration and team moral. You end up screwing the bottom no matter how great they are.
There is no official SR @MS. There is a slider which allows a more continuous allocation of resources rather than allocating them based on buckets. Nontheless, the pool is limited, so eventually some will be moved to the right of the slider while others to the left. End result will be a stack ranking. Unless the manager is lazy in which case he will put all in the middle (no stack).
Microsoft folks, it means there is no stack ranking in Msft. You don't put people on a performance improvement plan, do you?
The evil thing isn't the stack ranking so much as the forced curves and attrition. Sure, it sucks to be on a strong team with a finite pool for bonuses, but it sucks a whole lot worse when management is required to hand out a fixed number of "fuck you" awards every year.
We did away with it 5-6 years ago. In terms of compensation and bonus allocations it’s still there since there’s a limited pool of resources but there’s no forced curve in terms of keep/pip. It does make things a lot more collaborative
Compile so far... Amazon - yes Microsoft - no Expedia - no Salesforce - no
Yes, even though it officially gone for years, it never left. How else do you calculate rewards?
Exactly. What Nutella did by "removing the stack ranking system" is the equivalent of claiming that Nutella has 0g of fat by changing the portion size to < 0.5g