rank and yank

Advanced 👥 Human Resources

Definition

A ruthless performance management system that ranks all employees against each other and automatically fires the bottom performers, regardless of absolute performance levels. It's corporate social Darwinism with spreadsheets.

Example Usage

GE's rank and yank system fired the bottom 10% every year, creating a culture where colleagues actively sabotaged each other.

Origin

Popularized by Jack Welch at General Electric in the 1980s as 'differentiation' or 'vitality curve'

Fun Fact

Microsoft abandoned rank and yank in 2013 after realizing it destroyed collaboration—employees wouldn't help teammates who might outrank them in reviews.

Source: Performance management system terminology

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