Employment solicitor Esther Langdon recently commented on the set distribution or “forced ranking” method of employee performance reviews in Personnel Today.

In a set distribution model, employees are plotted across a distribution curve of high performers, mid-ranking performers and under performers. While this was once common practice, beginning in 2013 larger companies like Microsoft and Accenture shifted away from this approach in favor of more team focused and collaborative methods.

What exactly is the problem with plotting employees performances? Esther Langdon explains that there are potential legal consequences if employers misapply a forced ranking system. Strict action resulting from placing someone in the bottom tier could mean dismissal processes are not carried out fairly. She continues, “There’s nothing wrong with robust appraisals, done in the right way. But ranking creates a cut-throat culture.”

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