energizing employee performance managementactive user involvement is imperative the team must be...
TRANSCRIPT
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WINNER of Microsoft Code For
Honor 2014 Large Enterprise Software
Best Human Capital / Talent
Management Solution
Performance Management
Employee Engagement
Employee Development
Energizing Employee Performance Management: How two companies are disrupting the status quo and shifting from dread to cred!
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Agile Performance Management
Tracy McCarthy | EVP, Human Resources
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Poll QuestionHow many of you are dissatisfied with your current performance management process?
a) Satisfied b) Dissatisfied c) Not Sure
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Traditional Annual Process
Inconsistent goal setting and development planning
Review scores were the key driver of pay increases
Dread
Pulling Teeth
We need to disrupt the status quo….
SAVO Journey – Where We Began…
Disengagement
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Business was going through tremendous change
– New PE firm investment
– New senior leadership
– New software
development
methodology
– Several restructures
– Higher than normal
turnover and
engagement scores
quickly declining
– Change fatigue
Might as well change this process too!
Business in Transformation
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Software Development Methodology
Two primary methods of software development
Waterfall – Top down driven, long timelines, little flexibility
Agile – the opposite!
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Key Agile Concepts
Active user involvement is imperative
The team must be empowered to make decisions
Small incremental releases and iterations
Testing and feedback is integrated throughout the process – early and often
Collaboration and cooperation between all stakeholders is imperative
Service-based leadership style is critical
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The Connection & The Shift
Performance Management is a process
Performance Management is traditionally waterfall
Performance Management is not usually very successful at quick iterations and change
Focus on three key aspects of agile
We want to drive continuous conversation about future performance and contributions and move away from backward-looking ratings.
Connection Shift
Employee involvement is key –employee’s own their performance and development
Feedback should be frequent and course corrections happen quickly – no more looking back
Capturing requirements should not be a “dreaded chore”
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The Journey Begins February 2015
Transition
Implemented quarterly check in
reviews and a final year end
review
Goal setting that rolls into the
quarterly check in
Buy-in from Sr. Leadership and next level management
Sought feedback from managers and employees about the PM process -Key feedback
More regular performance
discussions vs. system
requirements
More focus on goal setting tied to
department and company goals
Time to talk about individual
development and career growth
Improvement in managers ability
to provide constructive feedback
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Development Discussions:
Forward-looking performance
discussions with continuous
course correcting and support
Shift from one-way feedback to
Asking questions and listening
Focus on giving and seeking
feedback, As well as actively
listening, to encourage reflection
And meaningful dialogue
The HOW is equally important as
The What (tie to SAVO values)
Focus on regular conversations
Not Just once a year or once a
quarter, to Improve effectiveness
and ensure alignment and
development
Agile Performance Development Characteristics and Focus
SAVO People Leaders
Objectives: Realize benefits of increased productivity, improved visibility, flexible to shift priorities and employee growth
Feedback : From circles, managers, peers, directs, teams
Process: Simplified goal setting
And follow up via Talent
Management system
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Poll QuestionDo you think continuous communication or the lack of it can affect employee performance?
a)Yes b)No c)Maybe
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What kept me up
Managers may not embrace failure as a
part of success
Management skill and commitment to
providing meaningful
feedback
Employee perception of
fairness
Employee Retention
How will we apply compensation with no scores?
Epic failure and inability to iterate
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The Journey Continues 2016
January 2016Last formal annual performance review
Turned focus to Goal Setting and forward looking feedback
Quarterly check in to: document progress toward goals course correct when needed and celebrate success document in system of record
Focused skill development for all people managers
1 company goal3-5 individual/team business goals 1-2 personal development Goals
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Lessons Learned
Any PM process is only as
good as your managers
For some it is in their DNA;
some it’s still pulling teeth
The risk of deteriorating
motivation is real
Document progress
Learning to
embrace failure as a
part of success
This was really about
managing change, so
change management skills
are paramount for HR and
LeadersThe process is every evolving
and understanding agile
methodologies is importantCommunicate more
Than You think is
necessary
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Compensation
Base Salary/Pay
Reviewed each year in Q1
Will be based on:
Productivity
Potential and growth;
Position in pay range;
Market competitiveness
Incentive Compensation
Based on achieving company financial and growth goals
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Summary
Performance management is a conversation between a manager and employee where expectations are set and feedback is providedA relationship based on trust & respect between the manager and employee is paramount to the process
Effective feedback is data provided to a person that allows them to choose their behavior going forward
Employees are responsible for his/her career choices and aspirations, and raise his/her needs
It is the manager's role to support that employee in their goals and provide opportunities when possible.
Documentation is critical to hold employees and managers accountable
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Performance & CompensationAt Equity ResidentialChrista Sorenson| EVP, Human Resources
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30%of performance reviews result in
decreased employee performance.
10 STATISTICS ABOUT PERFORMANCE MANAGEMENT THAT WILL BLOW YOUR MIND.
Talent Management 360. http://www.talentmanagement360.com
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“I have had numerous years when my supervisor has told me that they wanted to give me ‘x’ rating but it had to be lowered to fit into our department’s budget.
I do not believe the end of the year process is a true reflection of my performance.”
- Equity Employee
“The written text of a performance review is helpful.
The scoring is a dishonest joke.”
- Equity Employee
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80%“I receive the feedback I need from
my supervisor to improve my performance.”
Equity Employees
2015 Engagement Survey
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Equity’s New Performance Process
What’s changing:
• All numerical performance ratings for corporate employees have been eliminated.
• We are removing the 1:1 relationship between a final year-end rating and the bonus payout.
What’s staying the same:
• All employees have 3-5 performance goals and one development goal.
• Goals have action items and measurements set at the beginning of the year.
• Performance feedback remains a critical component of employee development and learning. Managers are still expected to provide regular feedback to their employees.
• A written performance review will be completed at the end of the year and will include comments of both employee and manager.
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Poll QuestionCan you fairly determine employee compensation without a performance rating system?
a)Yes b) No c) Maybe
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New Compensation Process
What is changing:
• No year-end rating to determine bonus/ LTC payout.
• Majority of employees will be considered “strong” and will be eligible to receive 100% of bonus/LTC potential.
• A small number (5-10%) may be eligible to receive an upward (more) or downward (less) exception of bonus/LTC potential based on performance results.
What is staying the same:
• Performance is a key factor in determining compensation.
• Market-based with salary ranges, market factors to ensure externally competitive.
• Managers should review employees’ salaries annually to ensure competitiveness.
• Merit matrix will recommend annual increase based on position in range and performance.
• Bonus pool based on Equity’s current financial results and outlook.
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New Incentive Comp Payout Recommendations
Incentive Comp Category DefinitionsEligible Bonus/LTC Potential
PayoutIdeal Distribution*
STRONG PERFORMER
Employee delivered strong consistent
performance against a challenging set of
goals
100% 85%
ExceptionsEligible Bonus/LTC Potential
PayoutIdeal Distribution*
Upwards Exception
• Significant measureable results achieved
against a challenging set of goals110% or more 10%
Downwards Exception
• Developing Proficiency / Missed Objective
OR
• Under Achieved on Multiple Objectives or
Major Miss
90% or less 5%
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Calibrating Exceptions
Incentive Comp
CategoryPerformance Results
Strong Performer
Eligible to receive
100% of Bonus/LTC
Potential
• Delivered consistently on most/all objectives
• Demonstrated 10 Ways behavior
• Valued performer
“Strong performer; we don’t want to lose this person.”
Upwards Exception
Eligible to receive
110% or more of
Bonus/LTC Potential
In addition to above, clearly distinguished himself/herself through:
• Impressive results on a significant company-wide or department-wide project over and
beyond the normal workload, or
• Picked up significant workload for an extended period of time beyond usual workload, or
• Created significant, new, one-time contribution of value for the company
“It’s obvious – this person out-performed.”
Downwards Exception
Eligible to receive
90% or less of
Bonus/LTC Potential
• Delivered on some, but not all objectives or demonstrated behavioral/attitude challenges
“Faced challenges, but will likely pull out of this and be a strong performer next year.”
OR
• Did not deliver on a number of objectives (poor quality, missed deadlines) or demonstrated
serious behavioral/attitude challenges
“Really struggling; unlikely to make it long term.”
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The Big Concern
• Many of our employees were accustomed to consistently
getting more than 100% of their bonus due to high
performance ratings and now, most will only earn 100%
• The intent of this program was not to be a cost cutting
measure.
• Therefore, a 3-year historical payout average was applied to
incentive targets and/or salary (one-time adjustment) for all
participants to ensure zero negative impact on employee
compensation.
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Key Learnings
• Our company history/data was saying that we weren't effectively paying for performance- we needed to let go of the belief that we were
• The most significant pain points- wasted time and energy of the managers and de-motivation of the employees helped us sell the changes.
• We involved senior leaders early and often throughout the process so that they have ownership (not an “HR initiative”)
• We ensured that no strong performers would lose money in the first year.
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Key Learnings
• Our company history/data was saying that we weren't effectively paying for performance- we needed to let go of the belief that we were
• The most significant pain points- wasted time and energy of the managers and de-motivation of the employees- helped us sell the changes.
• We involved senior leaders early and often throughout the process so that they have ownership (not an “HR initiative”)
• We ensured that no strong performers would lose money in the first year.
How can
Synergita help?
WINNER of Microsoft Code For
Honor 2014 Large Enterprise Software
Best Human Capital / Talent
Management Solution
Prabakar MarimuthuDirector Technology, Synergita
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• Synergita is a Continuous Employee Performance Management, Development & Engagement Software
• Helps in building a world-class company culture driven by employee recognition
What is Synergita?
Goals & Achievements
Continuous Feedback
Recognitions Check-InsAnnual
Reviews
Focus on Holistic Employee Development
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Gre
at P
lace
to
Wo
rk c
om
pan
ies
Our global customers
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Synergita – quick look at the functionalities
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Agile Performance Management
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HR Dashboard
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Real time goal setting
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Real time feedback
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Development discussions
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Value Propositions
Disruption
Insta-Go
100% Compliance
HR Elevates to being a strategic partner
Personal Touch
Peace of Mind
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Key Differentiators
Disruption
WOW Features
Digital Cockpit
Insta-Go
Easy Administration
Works the way you want it to
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TEST DRIVE SYNERGITA TODAY
Remember the URL:
http://testdrive.synergita.com
Or Simply Google
Testdrive.Synergita