reinventing performance management: how to measure performance, boost employee engagement &...
TRANSCRIPT
Today’s Presenters
Chris Wright, Ph.D.Founder, President & CEOReliant
Colin WrightField Systems TrainerLove’s Travel Shops & Country Stores
What We’ll Cover Today
Why people dislike the performance review
process
Why performance feedback is so
critical
What the current trends in performance
management are
How to re-invent your performance management system to drive
engagement
How Love’s Travel Stops & Country Stores has led their industry in
performance management
How do HR leaders feel about their performance management processes?
Source: Global Human Capital Trends 2015, Deloitte University Press
Look familiar?
Why?
Performance feedback is given infrequently or not at all
The annual review process is a dated
model.
Annual reviews make it difficult for managers to remember behavior and work progress throughout the year.
Performance feedback is given infrequently or not at all
Managers often provide as little feedback as possible for fear of not “doing it right” or saying something that could be used against them.
Many organizations don’t hold managers accountable for delivering
feedback to employees.
Measuring the wrong
things
Companies do not measure the right things
Most companies struggle to define core
competencies.
We over-complicate or over-simplify what is
being measured.
We struggle to integrate goals into the
performance management process.
Managers focusing on the negative
Managers focus mostly on the negative
Companies have not trained managers how to
deliver performance feedback in a positive, constructive manner.
Constructive criticism is given, but managers don’t
work with employees to create development plans.
Reviews become more about what employees are
doing wrong rather than what they’re doing right.
People are not invested in the process
Managers are not invested in the process
Reviews are a “copy and paste” from prior years.
Assistants complete the review forms.
Managers procrastinate until the last minute, and provide no written feedback to support
ratings.
They pass their own goals down to subordinates.
Forced distributions have tainted the process and lowered morale
Forced distributions have tainted the process and lowered morale
Only allowing managers to give out a certain number of
high scores
Forcing managers to place employees into a normal distribution so that many high performers are rated as “average” or
“underperforming”
Forced distributions have tainted the process and lowered morale
Implementing across-the-board salary increases despite performance differences
Rater bias is most prevalent here; managers rate and reward
favorites highest
Using software that
is overly complicated
Source: Guide Spark Survey, 2014
So why do performance reviews?
89% of employees say they want frequent performance
feedback
89% of employees say they want their manager to be
direct when giving feedback
So why do performance reviews?
Develop & Manage TalentIdentify strengths and weaknesses
Identify potential leaders
Spend training and development budgets wisely
Identify capability gaps to drive hiring, training, succession
Drive Business ValueImprove customer experiences
Improve services
Make better products
Watch out for bad advice
“Scrap reviews, you don’t need them … just do goals.”
How a person accomplishes a goal is just as important as whether the goal gets accomplished!
People can accomplish goals, but also leave a trail of scorched earth and burned bridges
in the process.
Watch out for bad advice
“Scrap reviews, you don’t need them … just do goals.”
Rating people on critical behaviors and skills is very important – it just needs to be done right!
Without reviews it is impossible to offer career progression advice and do succession
planning well.
Is it time to reinvent the performance management process?
Source: Deloitte University Press
Measure the right things
Only rate employees on behaviors/competencies that you are willing to
invest money to develop.
Eliminate ratings on behaviors/competencies that are truly irrelevant to streamline
the process.
Focus less on past behaviors and actions and more on future behaviors and goals (i.e. the
“how” goals were accomplished).
Place more emphasis on employee strengths.
Source: Gallup
At work, I have the opportunity to do what I do best every day
more likely to earn high customer
satisfaction scores
44%more likely to have
low employee turnover
50%
more likely to be productive
38%
Businesses whose employees chose “strongly agree” for this statement were:
Increase the frequency of feedback
Make the process simple (short, mobile-friendly forms).
Streamline review forms so that they require no more time to do quarterly than annual reviews.
Review performance “when it happens.”
Review people within 30-90 days of hire.
Conduct targeted, simplified reviews more frequently (i.e. quarterly).
Source: Deloitte Global Human Capital Trends, 2015
Increase the frequency of feedback“At Deloitte we live and work in a project structure, so it makes sense for us to produce a performance snapshot
at the end of each project. For longer-term projects we’ve decided that quarterly is the best frequency. Our goal is
to strike the right balance between tying the evaluation as tightly as possible to the experience of the performance
and not overburdening our team leaders, lest survey fatigue yield poor data.”
Simplify rating scales
Include qualitative feedback with any behavioral rating to give employees a clear
understanding behind the rating.
Develop rating anchors that are “positive and
developmentally-oriented.”
Eliminate “forced-distribution” approaches.
Source: Deloitte Global Human Capital Trends, 2015
Simplify rating scales“Done poorly, performance management can not only
waste valuable time, but also have a negative effect on engagement and retention. Done well, it can be one of
the most inspiring and developmental events in an employee’s career, as well as drive performance improvements and organization-wide results.”
Use the right technology
“More than 70% of our respondents are upgrading or have recently upgraded their core HR systems with new cloud
platforms.”
Source: Deloitte Global Human Capital Trends, 2015
Clients have reduced time spent on conducting performance reviews by 30-
60% using PERFORM™ and have improved the quality of the performance
management process.
Before Performance Management
software
No visibility
Relied on faxing scanned forms
Illegible handwriting
Storage nightmare
Done “when manager thinks of it”
Schedule evaluations automatically
Conduct evaluations remotely
View evaluations remotely by
managementAnalyze performance
over multiple evaluations
Visible to manager and employee
Review Competency to identify strengths and
weaknesses
Enduring performance process
Performance Management Today
Analytics can be used to determine:
Best candidates for specific development areas
Highest competency, which can be linked to regional challenges
Linking action plans to our global e-learning soft skill library means geography does not
hinder development
HR staff can review evaluations to help identify field managers who require more coaching to
reduce claims/turnover
Development Advantage
Long-Term Benefits
Environmental improvementCross-references with standard testing and competency assessment allows for easier mediation in personal disputes
Increase in manager retention
More-driven staff; eager to improve and qualify for promotions
Clearly defined standards for evaluators
80% Field management retention over two-year period
Measure the
right things
Increase the frequency of
feedback
Simplify rating scales
Use the right
technology
Reinventing Performance Management
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Q&A
Chris Wright, Ph.D.Founder, President & [email protected]
Colin WrightField Systems TrainerLove’s Travel Shops & Country [email protected]
HRCI
Program ID: 252642Recertification Credit Hours Awarded: 1Specified Credit Hours: HR (General)
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