If you fire all the 1's, 2's, and 3's, you have to hire people to fill in those positions. And in one year, the whole group gets re-evaluated, including the new hires. I'd think it would take quite a few cycles before the people who were 4's and 5's became 2's and 3's, while maintaining their same levels of productivity.
I think GE was well known for doing a similar practice under Jack Welsch and they still had plenty of long-term employees. I don't think the system is particularly desirable though.
I think GE was well known for doing a similar practice under Jack Welsch and they still had plenty of long-term employees. I don't think the system is particularly desirable though.