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?