what really drives employee performance

Is appraisal really dead? How to deliver sustained

high performance through people.

Lucinda Carney C.Psychol

lucinda@actus.co.uk@actusappraisal

Lucinda CarneyProfessionally• Chartered Psychologist• Senior HR/L&D Background

in Pharma & Telco till 2009• People and Performance

Management & Culture Change Consultancy

• Founder Actus™ performance management software

Personally• Married with two children• Back to netball player• Passionate about making a

difference

How is the annual performance review viewed in your organisation?

A: It is a strategic imperative

B: Taken seriously but can be “de-prioritised”

C: It’s a painful tick box exercise

D: Non existent

Why is it so painful?

• Backward looking• A snapshot in time• Nothing results from it• People go through the motions• People comply rather than see it as valuable• Doesn’t promote ownership

The focus is all wrongWe need to focus on Performance Achievement not

Performance Review

Lets take a look at the evidence

Research Review: What really drives performanceConducted by:

Dr Nuno da CamaraLecturer in HR and

Organisational Behaviour at Southampton Business

School

What are the biggest people challenges in your organisation currently?

• Recruiting the right people• Retaining the right people• Productivity and performance• Management capability• Employee engagement• Something else?

What effective performance management looks like

Cogs image with 8 itemsGoal settingTransparent communicationCoaching & developmentFeedback and recognitionStrategic alignmentReward for performanceTrained managersClimate of trust

Making the links

Quality People Management

Organisational Performance

Consistent People & Performance Management

Transparency & Culture of Trust

Clear Goals

Feedback and

Recognition

Trained Managers

Employee Engagement

Performance Management

Induction

It is all about ongoing, meaningful dialogue

Organisations with a Performance Achievement Culture are…

51% more likely to outperform their competitors on financial measures41% more likely to outperform their competitors on nonfinancial measures

Cascio (2011)

But how do we convince the ‘fluffy’ brigade

‘Engagement is now an accepted leading indicator of next year’s financial results’

Human Capital Institute; 2010

We have to speak their language

ProfitabilitySainsbury’s found higher levels of engagement linked directly to sales performance contributing up to 15% of a store’s year on year growth.

ProductivityInternational Gallup survey showed that individuals with the highest engagement scores averaged 18% higher productivity than those in the bottom quartile.

Safety Levels of employee engagement directly correlate with absenteeism and patient mortality in the NHS

Absenteeism & RetentionHay found companies with high levels of engagement show turnover rates 40% lower than companies with low levels of engagement.

Source: Engage for Success “The Evidence” & The Kings Fund Nov 2012

We have to align HR & OD with the needs of the organisation to gain real

sponsorship

Clear Expectations and Goals

Regular Feedback and support

Performance Achievement Focus

More DonorsMore Lives Saved

High Performing

Charity

Practical take aways!• Replace performance review with performance achievement make it

future focused and all year round• Gain sponsorship for HRM – link it to organisational outcomes• Motivate good management practice - make people management

important, set clear expectations and monitor them• Recruit managers with the ‘people gene’ & upskill them• Be a passionate change leader rather than a custodian of process

Discussion points or questions?

Contact me: Lucinda@advancechange.co.ukTweet to us @actusappraisal

www.actus.co.uk

Would you like a copy of the research?

To download the Research Review or any of our free thought leadership, manager guides or white papers follow this link to the Knowledge Bank and help yourself!:

https://actus.co.uk/register-page/