rethinking hr conventions the future of annual reviews
DESCRIPTION
Annual reviews are a long time standard for businesses to evaluate employee's performance. With the changing environment and generational difference, the standard needs some changes to match the needs of the current workforce.TRANSCRIPT
Rethinking HR Conven.ons: The Future of Annual Reviews
Performance Management
§ Expecta(ons set at (me of hire
§ Job descrip(ons § Feedback during the
year +/-‐
§ Annual review
What is the Purpose for the Annual Review?
§ Money
§ Deliver feedback § Praise § Set expecta(ons § Course correct § Change behavior or
performance
Are we Accomplishing These Goals?
98 percent of 645 HR managers believe yearly evalua(ons are not useful*
60 percent of HR execu(ves give their own performance-‐management systems a grade of C or below** * Achievers study
** World at Work/Sibson Study
Common Trends and Pitfalls
§ Late reviews § Not thorough or specific § Delayed feedback that is no
longer relevant
§ Sole focus on money
§ Not used as a resource for management of performance
How it makes your employees feel?
§ Nervous § Did not recognize
them for their contribu(on
§ Perceived as inaccurate
§ Did not provide meaningful feedback
Questions to Consider
Do the piTalls outweigh the purpose?
Why do we s(ll do these?
What can be beVer?
Let’s look at a real case study
What we are trying to accomplish?
§ Top performance
§ Engaged employees
§ Establish clear expecta(ons § Set manager and employee on the same path
Designing Performance Management starts with understanding PEOPLE and what is expected of
them and what motivates them.
Generational Considerations
§ Baby Boomers
§ Gen X § Millennials
Baby Boomers(Born between 1946 – 1964)
§ Work centric
§ Independent § Goal-‐oriented § Compe((ve
§ Posi(on, perks and pres(ge § Challenging projects § Praise for long hours § Title
Who they are… How they are motivated…
Gen X (Born between 1965 and 1980)
§ Individualis(c § Technologically adept § Flexible § Value work/life balance
§ Freedom and responsibility § Hands-‐off management
§ Change § Fun in the workplace
Who they are… How they are motivated…
Millennials (Born between 1980 and 2000)
§ Tech savvy § Family centric
§ Achievement oriented
§ Team oriented
§ AVen(on craving
§ Instant feedback § Meaningful work
§ Inclusion § Having a voice
Who they are… How they are motivated…
Motivational Considerations
§ Hamsters
§ Crash and Burners § Disengaged § Almost Engaged
The Intersection
You Are Here
Video Source: Blessing White
The Hamsters
§ Comfortable (perhaps too much)
§ Low company contribu(on
§ High sa(sfac(on Who they are…
§ What feedback can be given?
§ How do you increase contribu(on? § How do you challenge?
What to consider…
The Crash and Burners
§ “Quit” and stay § High company contribu(on
§ Low sa(sfac(on
§ Are goals aligned? § Do they fit the company culture?
§ What is their mo(va(on?
Who they are…
What to consider…
The Disengaged
§ Low company contribu(on
§ Low sa(sfac(on § Not a fit for the company
§ Can you change anything? § Is it worth changing? § Have they received feedback?
Who they are…
What to consider…
The Almost Engaged
§ Reasonably sa(sfied § High company contribu(on
§ Highly employable
§ How can you keep them challenged?
§ How can you con(nue to mo(vate?
§ What if they lef?
Who they are…
What to consider…
How to handle the intersection of generations and engagement
Focus on Goals
§ Proac(ve § Timely
§ Construc(ve § Challenging § Flexible § Tied to their mo(va(on
General Guidelines for Goals
§ Set goals at the beginning of employment
§ Use as a guide for performance
§ Deliver feedback on achievement
§ Flex with the business environment
§ Customize to their mo(va(on
§ Tie to company goals
SMART Goals
§ S(ll relevant for more tac(cal posi(ons
§ Gives a framework for
managers to write goals But how do we write goals for senior level people and subjec(ve roles?
Setting goals for senior level employees
§ WriVen by employee
§ Specific with a deliverable
§ Don’t use the words “con(nue, maintain, manage”
§ Use words like “create, develop, deliver”
Money considerations
§ Budget § Timing
§ Current structure § Performance-‐based
§ Employee ranking
Making Time for Feedback
What if they are not mee(ng?
§ Skip level mee(ngs
§ HR Check-‐ins
A few words about documentation
“The inherent dishonesty of reviews -‐-‐ the different reviews by different managers, the ofen disconnect between reviews and objec(ve measures -‐-‐ is what every plain(ff's aVorney yearns for. They love it when there are performance reviews, because they know they can use them to shred a defendant's case. Show me a paper trail, and I'll show you the path to a successful lawsuit.”
Source: Samuel Culbert
More Meetings, More Time?
§ Think of it as course correc(on
§ Set small mee(ngs throughout the year
§ Incorporate feedback into the current status mee(ng
§ Document more ofen
Making it happen…
As with everything, this can not be an HR only ini.a.ve. This is a culture and philosophy change.
Guidelines for Change
§ This is not an overnight change § Talk to your people, managers, leadership
§ Evaluate what DOES work § Think about training and coaching for managers
§ Review the business purpose of the annual review
A Better Way
“Performance previews” § Two-‐sided § Straight-‐talking § Focus on results § Clear expecta(ons § Everybody can win
§ Analyze your annual review purpose compared to the overall performance results
§ Understand your genera(onal differences and needs
§ Analyze your workforce engagement
§ Consider management training for change, mo(va(on, and goal-‐selng
Create a program focusing on proac(ve, real-‐(me, results oriented feedback
Key Take Aways
Julie McDonald 763-300-2237 Thank You!!!!