Moving Forward, Goldman Sachs Will Address Employees By Their Actual Names Rather Than The Numerical Values They've Been Assigned

"Hey, 6, get over here" will be a thing of the past.

Time was, the Goldman method of evaluating employees included giving them a ranking from 1-9, a designation that followed them around for the rest of the year. Turned in one so-so report that suck in your boss's craw? You were no longer "Rob," but "5". Now, not only will staffers no longer be reduced to a number, but they'll be given a thing called "constructive criticism."

The Wall Street bank is eliminating numerical rankings in employee reviews starting next month, and this fall will experiment with an online system where employees can give and receive continuous feedback on their performance...The firm will keep its 360-degree annual review, in which an employee solicits feedback from his or her manager and a select group of colleagues, including peers and reports. Gone is an employee ranking on a nine-point scale, she said. More firms are eliminating numerical ratings for workers as bosses realize “the person receiving the rating is now stuck with the number for an entire year that labels them,” said Josh Bersin, a principal at Deloitte Consulting LLP who advises companies on talent management.

Goldman Sachs Dumps Numerical-Ranking System for Employees [WSJ]


Goldman Sachs Can Fix This

A week ago today, a man named Greg Smith resigned from Goldman Sachs. As a sort of exit interview, Smith explained his reasons for departing the firm in a New York Times Op-Ed entitled "Why I Am Leaving Goldman Sachs." The equity derivatives VP wrote that Goldman had "veered so far from the place I joined right out of college that I can no longer in good conscience say I identify with what it stands for." Smith went on to note that whereas the Goldman of today is "just about making money," the Goldman he knew as a young pup "revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients." It was a culture that made him "love working for the firm" and its absence had stripped him of "pride and belief" he once held in the place. While claiming that Goldman Sachs has become virtually unrecognizable from the institution founded by Marcus (Goldman) and Samuel (Sachs), which put clients ahead of its own interests, is hardly a new argument, there was something about Smith's words that gave readers a moment's pause. He was so deeply distraught over the differences between the Goldman of 2012 and the Goldman of 2000 (when he was hired) that suggested...more. That he'd seen things. Things that had made an imprint on his soul. Things that he couldn't forget. Things that he held up in his heart for how Goldman should be and things that made it all the more difficult to ignore when it failed to live up to that ideal. Things like this: