rtmark
LearnBonds.com

Yahoo! Inc. (YHOO) Goes to Court to Defend QPR System

Yahoo! Inc (YHOO)

Yahoo! Inc.  was sued Monday by a former employee on grounds that its employee ratings system was used to fire its workers without issuing them with an advance notice, in violation of state and federal laws.

Gregory Anderson, who previously worked at Yahoo as the editorial director of its auto and travel sites, filed the lawsuit with the U.S. District Court in San Jose, California. He said the Internet firm’s internal employee rating system, dubbed Quarterly Performance Review (QPR), was deliberately being used to designate a fixed percentage of employees as low performers in order to provide a basis to dismiss them.

Sparked Internal Political Infighting

Mr. Anderson alleges the QPR system was influenced by internal political maneuvers that ignited fierce competition that resulted in bribery attempts and that the system contravenes employment laws, Wall Street Journal reported.

Yahoo! Inc (YHOO)

“The process was opaque and the employees did not know who was making the final decisions, what numbers were being assigned by whom along the way, or why those numbers were being changed,” reads an excerpt from the filing.

Mr. Anderson also said that the performance contracting system gave managers room to rate workers under them based on personal bias and stereotypes, and entrenched gender discrimination. He says his previous boss, former CMO Kathy Savitt, publicly advocated increased visibility of women in the media industry. Mr. Anderson states in the lawsuit that Ms. Savitt hired or promoted more female workers at the company and fired or demoted more male workers.

Yahoo quickly responded, saying that the system is based on fairness.  “Our performance review process also allows for high performers to engage in increasingly larger opportunities at our company, as well as for low performers to be transitioned out,” said a company spokeswoman.

Mr. Anderson was among 600 Yahoo workers who were dismissed in November 2014. At the time, he had taken leave to attend a journalism fellowship at the University of Michigan. California law obliges companies to give a 60-day notice before dismissing at least 50 employees within 30 days at a single location. Federal law also requires similar conditions for layoffs involving over 500 employees.

Resembles Infamous Stack Ranking Approach

The lawsuit likens Yahoo’s performance management system, which was initiated about three years ago by CEO Marissa Mayer, to the contentious “stack ranking” or “forced ranking” approach previously used by General Electric .

Yahoo workers were assigned ratings ranging from 0 to 5, which were grouped with buckets in which expectations were classified from “greatly exceeds” to “misses” in the order.

Most large corporations such as Microsoft Corporation have abandoned stack-ranking systems for a qualitative system based on frequent feedback. According to the lawsuit, managers were required to lump a certain percentage of employees into each bucket. This gave top-level executives an opportunity to rate staff they didn’t personally know favorably or unfavorably.

Mr. Anderson wants to be compensated for lost wages, bonuses, stock rights and other benefits and for the “severe emotional distress” he suffered upon his dismissal.

The lawsuit comes at a time when Yahoo is aggressively looking to trim its workforce due to the poor performance.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar