Replace 10% of your staff every year

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Proctor & Gamble has an internal rule where the worst-performing 10% of staff are replaced every year.

Every employee gets an annual grade:

1 = Beating expectations (you are promoted if you maintain this grading for two consecutive years)

2 = Average (you keep your current role)

3 = Not performing (you are found another role in organisation or lose your job)

The staff gradings as spread as follows:

Grade 1                                             10%

Grade 2                                             80%

Grade 3                                             10%

That means 10% of staff are replaced, every year.

Workday.com has a module that enables the automation of above. There’s no need to build an HR department. All you need is a system.

Proctor & Gamble is 179 years old. It’s system seems to be working.

Why reinvent the wheel?