A user shares a report that details General Electric’s rethinking of the annual raise. Bloomberg reports: “GE executives are reviewing whether annual updates to compensation are the best response to the achievements and needs of employees. The company may also scrap the longstanding and much-imitated system of rating staff on a five-point scale. Decisions on both issues may come within the next several months, spokesperson Valerie Van den Keybus said by phone.” “We uncovered an opportunity to improve the way we reward people for their contributions,” GE’s head of executive development, Janice Semper, said in an e-mailed response to questions. It will involve “being flexible and re-thinking how we define rewards, acknowledging that employees and managers are already thinking beyond annual compensation in this space.” In response to this news, ErichTheRed writes: First it was “stack ranking,” the process where GE fires the bottom-rated 20% of the workforce every year. Now, a new HR trend may be brewing at GE that is destined to be copied by MBAs everywhere if it takes hold. Personally, in terms of cargo-cult HR trends, I’d take Google’s open office nightmare over this one. What do you think this would do to employment stability if widely enacted? I can definitely see banks rethinking 30 year mortgages, for example…

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Source: Slashdot – GE Considers Scrapping The Annual Raise