reinventing performance management: how to measure performance, boost employee engagement &...

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Page 1: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results
Page 2: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Today’s Presenters

Chris Wright, Ph.D.Founder, President & CEOReliant

Colin WrightField Systems TrainerLove’s Travel Shops & Country Stores

Page 3: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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

Page 4: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

How do HR leaders feel about their performance management processes?

Source: Global Human Capital Trends 2015, Deloitte University Press

Page 5: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Look familiar?

Page 6: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Why?

Page 7: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 8: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 9: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Measuring the wrong

things

Page 10: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 11: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Managers focusing on the negative

Page 12: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 13: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

People are not invested in the process

Page 14: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 15: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Forced distributions have tainted the process and lowered morale

Page 16: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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”

Page 17: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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

Page 18: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Using software that

is overly complicated

Page 19: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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

Page 20: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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

Page 21: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 22: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 23: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Is it time to reinvent the performance management process?

Source: Deloitte University Press

Page 24: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 25: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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:

Page 26: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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).

Page 27: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.”

Page 28: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.

Page 29: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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.”

Page 30: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business 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.

Page 31: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Before Performance Management

software

No visibility

Relied on faxing scanned forms

Illegible handwriting

Storage nightmare

Done “when manager thinks of it”

Page 32: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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

Page 33: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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

Page 34: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

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

Page 35: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results
Page 36: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Measure the

right things

Increase the frequency of

feedback

Simplify rating scales

Use the right

technology

Reinventing Performance Management

1 2 3 4

Page 37: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

Q&A

Chris Wright, Ph.D.Founder, President & [email protected]

Colin WrightField Systems TrainerLove’s Travel Shops & Country [email protected]

Page 38: Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results

HRCI

Program ID: 252642Recertification Credit Hours Awarded: 1Specified Credit Hours: HR (General)

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