- GM’s recent performance evaluation overhaul has led to an unknown number of layoffs.
- Late last year, it fired roughly 1,000 workers shortly after implementing the new system.
- Critics argue the company’s review system could harm morale and promote favoritism.
GM’s performance evaluation system has led to many salaried workers across the United States losing their jobs as part of annual employee reviews. While the full extent of the layoffs hasn’t been revealed, social media posts suggest that dozens of workers will now be looking for new employment.
The carmaking giant introduced its revised performance evaluation scheme in August last year, moving from a three-point performance rating scale to a five-point one effective for the year-end performance review cycle. Managers have been asked to rank 5% of their team that significantly exceeds expectations, 10% that exceeds expectations, 70% that achieves expectations, 10% that partially meets expectations, and 5% who do not meet expectations.
Read: GM Dangles 150% Bonuses To Reward Top Workers And Push Out Slackers
Approximately 1,000 employees were sacked by GM late last year, shortly after the new system was introduced. Workers who lose their jobs due to poor performance are considered “non-rehireable” and prohibited from applying to future positions at the company.
GM has not said how many workers lost their jobs, other than acknowledging that cuts had been made.
“GM is proud to have a culture where we foster and reward high performance, collaboration and excellence, which will help us attract and retain top talent in a competitive industry environment,” a company spokesperson said. “That includes everything from ensuring employees know what is expected of them, providing feedback so they can develop and rewarding them for their performance.”
GM’s Performance Focus
According to Wayne State University business professor Marick Masters, performance evaluation systems like GM’s can have a “mixed effect on morale.”
“If it’s perceived as being fair in design and implementation, then I think people will welcome it because they’ve put up with too many poor performers for too long and that will attract talent,” he told the Detroit Free Press. “The flip of that is very important as well. If it’s perceived as being poorly designed and managers show favorites in how they rank people … then it can lead to a lot of bad feelings across the board.”
These latest sackings come just a week after the US Equal Employment Opportunity Commission (EEOC) claimed General Motors and the UAW had violated federal laws by engaging in age discrimination tactics. The EEOC alleges the company has paid less to employees entitled to full retirement benefits from the Social Security program because of their age.
