Hiring top performers is difficult and expensive. Retaining top performers may not be as difficult, but quite often turns out to be more expensive. Most companies have a gradation of employees when it comes to performance. These employees are typically classified as:

When economic conditions force your company to downsize, ideally you would like to cut the D players and keep the A, B, and C players.

Measuring Employee Performance?

But exactly how is "performance" determined? Do you look back three months, six months, or twelve months? Where is the line between C and D players? What about new hires that are emerging top performers but have not had enough time to prove themselves? Are extenuating circumstances like a death in the family, or a divorce in the life of an employee considered? How much does subjective information influence middle managers' decisions for the cut? How much time do you have for determining who will be cut? Are you exposing yourself to a lawsuit by unfairly cutting the wrong person?

These factors (and many others like them) cause most companies to throw up their hands in frustration, and make cuts on an arbitrary basis. These arbitrary cuts severely limit the long-term goal of building an organization of top performers.

Retaining High Performers with Employee Assessments

There is a better way. Remember, the extensive Gallup research revealed that 50% to 70% of job success depends upon having the right talent for the job. Doesn't it make sense to consider this factor not only in the hiring process, but also when making cuts? Of course, it does.

Preserving the high performers in your organization depends on keeping the right "type" of person in the job. These employees are the ones who will benefit from training and nurturing and have the highest probability of becoming top performers.