Adobe HR Change Evaluated
By Pulkit Sharma
Software giant Adobe, with a huge base in India, achieved revenue of $4.06 billion and generated $1.15 billion in cash flow from operations in 2013. Its Creative Cloud subscriptions grew by 1.1 million and Document Services subscriptions doubled to more than 1.6 million. Adobe Marketing Cloud achieved a record $1.02 billion in annual revenue, representing 26 percent YoY growth
In 2012, Adobe changed the way it evaluates every employee. It stopped using Yearly Performance Reviews and started frequent “check-ins” where managers provide employees targeted coaching and advice.
Bob Sutton, a Stanford Professor and successful author, has quantified the successes of the new Adobe HR Employee Appraisal system
The shift in Adobe’s attrition is especially telling. Since the new system was implemented, involuntary departures have increased by 50%: this is because, as Morris explained, the new system requires executives and managers to have regular “tough discussions” with employees who are struggling with performance issues—rather than putting them off until the next performance review cycle comes around. In contrast, voluntary attrition at Adobe has dropped 30% since the “check-ins” were introduced; not only that, of those employees who opt to leave the company, a higher percentage of them are “non-regrettable” departures.