Peer Ranking or Popularity Contest?
Wondering what people think of peer ranking for compensation/merit . . . is it accurate, useful, or just a popularity contest?
We have an employee who complained that a peer ranking system (which we are contemplating) is simply a popularity contest. He called the system an “unfair ” ans said that it keeps raises down for “the average guy.” He said that he is so disgusted by this practice that he is considering early retirement.
Any thoughts on the usefulness/fairness of peer ranking would be much appreciated.