Pay-for-Performance

Rater Training

Rater training can significantly improve the performance appraisal process. Raters must understand the meaning of the factors and the definitions of scale positions. Raters should also practice rating to improve reliability.

There are 2 types of training programs:

• Rater-Error Training (RET)
• Rater-Accuracy Training (RAT)

Rater-error training

Rater-error training (RET) is directed at reducing response errors discussed earlier, such as the halo effect. Studies show that RET does reduce error and bias but does not improve accuracy.

Rater-accuracy training

Rater-accuracy training (RAT) is aimed at developing observational skills that improve the accuracy of ratings. RAT is better than RET at improving accuracy, but one study found that it was not superior to a control group given no training.

This study seemed to indicate that with training, raters can reduce errors but not necessarily improve their overall accuracy. Despite these mixed results, the weight of evidence is that rater training improves performance ratings. Given the importance of good ratings in a pay-for-performance program, rater training seems absolutely necessary.