EmagGeek's Journal: Measuring Proficiency in the Engineering Workplace

The current and most common paradigm for reviewing employee performance seems to be the standard annual review of accomplishments against the employee's goals and objectives for the review period. In my company, compensation is determined mostly by the outcome of the goal and objective review. However, titles and ranks (and therefore promotions and career advancement - or ending) are determined by a completely separate set of criteria, among them being engineering expertise. We do not currently have an established way to objectively measure employee proficiency, so I was curious if you've experienced being rated for your engineering proficiency, and if so, how was that accomplished, and also whether you have been promoted or demoted or received an adjustment in compensation as a result of it.