Research in Brief |

Formal Performance Assessments on the Decline

One in four organizations does not formally assess performance (or have a ratingless practice), according to the Compensation Programs & Practices Survey by WorldatWork, with underwriting support from Willis Towers Watson. This is 10 percentage points higher than survey results from 2016.


The survey, which closed on Nov. 16, 2018, also found most organizations aim to compete at the median/50th percentile of the market for base and variable pay. In addition, nearly half of organizations allow managers flexibility in allocating merit increases, even if a merit matrix is provided as a guide.

The survey, which gathered 348 responses from WorldatWork members, focused on the prevalence of base and variable pay programs as well as common practices used to administer and communicate these programs.  


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