General Motors (GM) is ramping up efforts to refine its salaried workforce through an updated performance evaluation framework. On Friday, several salaried employees were laid off, with additional cuts anticipated as the company continues its annual review process, set to conclude in February. While the revamped system aims to enhance efficiency and retain top talent, it has sparked mixed reactions among employees and industry analysts.
In August of last year, GM overhauled its performance assessment process and bonus structure, shifting from a three-point to a five-point rating system. This change was designed to give managers clearer criteria for distinguishing high performers, those meeting expectations, and employees falling below the required standards. Individuals rated as “not meeting expectations” face disciplinary measures, including termination.
The company initiated its first round of job cuts under the revised system in November, dismissing approximately 1,000 salaried employees. As the evaluation process progresses in the coming weeks, further layoffs are expected. GM emphasizes that these measures align with its commitment to fostering a high-performance culture. However, the strict consequences for those labeled as underperforming have raised concerns about long-term employee morale.
One notable aspect of GM’s policy is that terminated employees receive a “non-rehireable” status, barring them from applying for future positions within the company. While this approach ensures that only top-tier talent remains, it also cultivates a high-pressure work environment where job security is uncertain. This strategy reflects a broader trend in corporate America, where businesses prioritize operational excellence and competitive performance. However, the long-term effects on employee retention and overall workplace satisfaction remain to be seen.
