Some great idea here on how companies handle annual reviews of it's workers.
Seems that once a company hits 50+ employees that some formal review process becomes inevitable - what did surprise me is that very often this came at the request of employees.
The most innovative and elegant solution came from a company called CareerFoundry.
Have a read - I can see this idea catching on.
Once the rating is in, the manager has no control over compensation, Gale says. Employees get paid a predetermined sum associated with each rating—a system that applies not just to base pay, but also to bonuses and equity. This helps spare employees from getting “black box” ratings by the powers that be, without any say in the matter, Gale explains.