GM Revamps Employee Performance Ratings to Boost Talent Retention

General Motors is overhauling its employee performance evaluation system in the U.S. The new system aims to better reward high performers and pressurize low performers to improve or leave. Top 5% of employees now get 150% bonuses. The initiative is part of GM's strategy to excel amidst the transition to electric vehicles.

General Motors is revamping the way it evaluates the performance of its salaried employees in the U.S., aiming to better reward high performers and pressure low achievers to improve or leave the company.

An internal memo obtained by Reuters outlines that the top 5% of high-performing employees will now receive bonuses of 150%, a significant increase from the previous system. This change intends to attract and retain the talent necessary to achieve GM’s ambitious goals in the competitive shift toward electric vehicles.

GM’s new performance ranking system introduces a five-scale evaluation, ranging from “significantly exceeds expectations” to “does not meet expectations.” Employees’ bonuses will be directly tied to these rankings. With about 53,000 salaried employees in the U.S., GM emphasizes the importance of clear expectations and accountability. The updated rankings will be applied during year-end performance reviews.