A New Hope for Rank and Yank

Using simulations to study the effects of performance appraisal format on workforce performance potential, the authors explore modifications of force distributional rating systems that terminate poor performers each evaluation period. Findings suggest that systems with probationary periods before termination may realize some of the gains in workforce performance potential that traditional “rank and yank” systems pose, while also having the potential to increase fairness perceptions and, in turn, reduce voluntary turnover. Despite perceptions in practice, results show that temporary use of “rank and yank” may do more harm than good in that levels of workforce performance potential may not be maintained.