4.02 Are Performance Ratings Still Fit for Purpose in Today’s Workplace?

Performance ratings spark strong views – some see them as essential for clarity and motivation, others as outdated, divisive, and unhelpful. In this episode, we go beyond the usual debate to ask whether ratings can still play a constructive role in modern performance management, or whether they need a complete rethink.We’re joined by Anna Rasmussen, CEO and Founder of OpenBlend, who brings over a decade of experience helping organisations build people-first performance cultures. Anna suggests ratings alone are not the problem – it’s how they're used. When treated as a once-a-year judgement with no context, they can disempower. But when paired with continuous performance conversations and effective employee–manager 1:1s, they become a valuable tool that not only supports development and accountability, but actually drives performance.We explore how to align performance conversations with the employee journey, how to equip managers with the mindset, skillset and toolset to succeed, and why ratings are becoming more popular again – not to measure performance, but to drive it. We also touch on the impact of linking ratings to pay and the need for fairness, trust, and clear expectations throughout the year.This episode is essential listening for leaders and HR professionals questioning whether to scrap ratings, or simply use them better.Key Points DiscussedWhy many organisations are returning to performance ratings, but using them differentlyThe risk of ratings being a ‘dumping ground’ for poor performance managementHow to design better performance conversations from day one of the employee journeyThe link (or lack of link) between ratings and pay – and what really drives fairnessThe importance of ongoing dialogue over one-off appraisalsEmpowering employees by making performance conversations more transparent and timelyHow manager capability is central to making the system workA practical framework: mindset, skillset and toolset for managersKey TakeawayIt’s not the rating that’s the issue – it’s the absence of regular, meaningful conversations that disempowers employees. Performance design must start on day one and be owned every day, not just at year-end.About Anna RasmussenAnna is the CEO and Founder of OpenBlend. With over 17 years of experience in leading and coaching teams, managers, and organisations, she’s passionate about unlocking human potential. Her mission is simple: to upskill and empower managers to lead highly effective, coaching-led 1:1 conversations that drive performance and people development.OpenBlend is a performance platform designed to enable meaningful 1:1 conversations between managers and their teams. It boosts performance, supports employee development, and helps organisations build people-first cultures. Working across a wide range of industries and sectors, OpenBlend helps organisations attract, engage, motivate, and retain their talent, and build high-performing teams.www.OpenBlend.comThank you for tuning in to this episode of The Strategic Leader podcast. If you enjoyed the show, please give us 5 stars! It will help others to find the show. And don't forget to check out previous episodes, and subscribe for more insightful discussions and practical advice on becoming a more naturally strategic leader.If you have questions about anything we've been talking about, or need guidance on strategic leadership, we'd love to hear from you.Feel free to contact us via www.gemmabullivant.co.uk (Gemma) or www.wearegoodthinking.co.uk (Fiona). Your queries could inspire future episodes to help you become a more strategic leader.