How would you feel if your latest written 360 degree performance review became public knowledge? I'm sure you'd be horrified to have this private narrative disclosed to every Tom, Dick and Harry who had the ability to read intimate details written by your peers, managers or subordinates.
Yet that's exactly what happened to Fabrice Tourre's performance review, even though the front cover was identified as being confidential with this message posted on the front cover: "Not intended for disclosure outside of the firm." At Congressional hearings held during the last week of April, senators quoted from the executives' performance reviews as they grilled Goldman Sachs executive management regarding the company's involvement in the mortgage-backed securities meltdown of the past few years.
A recent WSJ article titled "Goldman Puts Spotlight on Self-Evaluations" demonstrates an unlikely scenario when highly confidential, proprietary information was released into the public domain. The quotes the senators used tended to be self-congratulatory based upon their desire to maximize their bonus potential for the year.
"It should not be a surprise to anyone that the 2007 year is the one that I am most proud of to date," Goldman managing director Michael Swenson wrote in his self-evaluation. Senator Tom Coburn (R., Okla.) used his comments to link Goldman to the trades that have brought on the current scrutiny by Congress and the Administration.
As HR professionals, we know the importance of keeping confidential information private and released to only those with a legitimate "need to know." But even HR professionals have been surprised to learn that self-assessments aren't really confidential. This revelation of information that many previously believed to be confidential may restrict company's from engaging in these developmental tools going forward.
"It's mind boggling," says Fred Foulkes, a Boston University professor who specializes in HR issues. "No one could have expected that these would become public."
Self-assessments have also been used in wrongful termination cases, which is to be expected by those who bring those suits against former employers. Within the last decade, self-assessments were also used to investigate the relationship between the banking and investment divisions of Goldman Sachs and other financial firms. But no names of employees were released during those hearings.
Names of employees are rarely publicly disclosed, according to Daniel O'Meara, an employment attorney for Montgomery McCracken in Philadelphia. But what most people don't realize is that co-worker evaluations can be disclosed and used to help make a case.
Many employers leave the 360 degree review or other self-evaluations in the employee's personnel file for up to seven years, leaving them open to subpoena. Now companies may consider shorter retention periods for these records, or having them completed and submitted under an attorney's direction in order to protect the confidentiality of these documents.
In the short-term until the political pressure subsides, companies may reconsider creating reviews that potentially could embarrass them and their employees, according to Peter Capelli, director of the Center for Human Resources at the Wharton School of Business.
"This could have a chilling effect on the whole process," says Mr. Foulkes of Boston University.
Becky Regan is the founder and President of Regan HR, Inc., a human resources consulting firm specializing in compensation consulting for California employers and purveyor of online HR products. A former Corporate Human Resources Director (10,000+ employees) with more than 25 years of HR work experience in many industries, her team works with private, public and non-profit clients. Becky is passionate about designing HR programs and compensation plans that build organizations.
Flickr photo courtesy of lannadelarosa
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