Video game developer Valve uses a peer ranking system to evaluate each employee’s range of skills and overall value to the company. Each team member within a product group ranks their coworkers based on the four areas of 1) skill level and technical ability, 2) productivity and output, 3) group contribution and 4) product contribution. The company then stacks all of the rankings to get an estimated value of the employee to the company and their peers. The ranking system gives the opportunity for recognition across the variety of ways that employees are positively contributing to the company, regardless of department or expertise.

By having a flat company structure, the biases around position and title are less likely to influence the peer rankings. These rankings can also help employees evaluate themselves and see where they would like to improve themselves and generate more value for the team.

Valve

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