You're missing a big piece of the puzzle! The main reason some companies fire the bottom X% of performers every year is to motivate everyone to work hard (if not frantically) to try to stay out of firable bucket. The system you are measuring is affected by the performance management tactics you use, by design.
> On the other hand, looking at the Pareto percentile plot, the bottom 10% aren’t really all that different from the folks in the next 10%. As a matter of fact, there’s not an obvious place to draw a line to identify the “lowest end” employees to expunge. ~65% of employees are performing below the expectations that are associated with the salary midpoint (the green dashed line)!
> Summarizing:
> There is no intrinsic bottom 10% that needs to be expunged annually. Let managers identify any hiring errors if they think their team can do better, but don’t set a target for this number based on faulty statistical notions.
That's funny. The summary I would have put together from this is that managers should target cutting the bottom 65%
You're missing a big piece of the puzzle! The main reason some companies fire the bottom X% of performers every year is to motivate everyone to work hard (if not frantically) to try to stay out of firable bucket. The system you are measuring is affected by the performance management tactics you use, by design.
> On the other hand, looking at the Pareto percentile plot, the bottom 10% aren’t really all that different from the folks in the next 10%. As a matter of fact, there’s not an obvious place to draw a line to identify the “lowest end” employees to expunge. ~65% of employees are performing below the expectations that are associated with the salary midpoint (the green dashed line)!
> Summarizing:
> There is no intrinsic bottom 10% that needs to be expunged annually. Let managers identify any hiring errors if they think their team can do better, but don’t set a target for this number based on faulty statistical notions.
That's funny. The summary I would have put together from this is that managers should target cutting the bottom 65%