Darcy:Thanks Thad. The data in this webinar all comes from our Summer 2013 Mood Tracker Report, which we released on August 27th.This is our fifth installment of the mood tracker. The survey was conducted by the market research firm Market Tools, from May 16th until June 3rd, and in the end we had 708 respondents – all of those are United States citizens over the age of 18, and fully employees at companies with 500 employees or more. The margin of error is plus or minus 3.9 percent, and we have a 95% level of confidence.We’ve developed a written report from these survey results subtitled “Empowering employees to improve performance” from which we gleaned almost all of the information in this presentation. That is available on our website and we’ll talk more about it at the end of the presentation. We also turned some of the survey result insights into an infographic, which we’ll email you after the presentation. It is called “The Startling Truth About performance reviews”.So Thad, shall we jump into the report findings?
Darcy:So let’s do a little straw poll here and see how these findings might be resonating with you. We’ll see if this audience agrees or disagrees with the general population. What do YOU think about performance reviews. Do you love them? Do you find them to be hit or miss? Think they need serious help? Maybe you find them completely useless and want to start fresh? Let us know… we’ll give you a minute to weigh in on that.Thad, what do you think about reviews?I think they have a certain utility. Frankly it might be the least managers can do, but in some cases it is hard to get managers in the habit of giving any feedback at all. From that perspective, reviews are a familiar vehicle we can use to influence behavior. I think reforming an existing tool is a lot easier to do than to find something entirely new and educate people from scratch.Okay, so here are our results…
Darcy:Finding #2 is an insight that we gained around the new phenomenon of crowdsourcing. Specifically we find that employees embrace, trust, and are comfortable with crowdsourcing.
Darcy: Many of you are probably familiar with crowdsourcing, but just in case… So, the idea of crowdsourcing came into the spotlight back in 2004 when James Surowiecki published a book called The Wisdom of Crowds. In this book he argues that decisions made by the group, the crowd, are often better than decisions made by any single member of the group. He opens the book with an anecdote that illustrates this really well.Back in the late 1800’s/early 1900’s there was a pretty well known statistician named Francis Galton—who was a cousin of Charles Darwin, actually– he went to a country fair in Devon, England and at that fair there was a Guess the Weight of the Ox competition. 787 people wrote their guesses on slips of paper and not one of them guessed the correct weight of the animal – even the experts. Galton averaged all their guesses and came up with 1197 pounds. The actual weight of the ox was 1198 pounds. That’s something we see over and over, according to Suroweicki. The crowd often get things exactly right when no individual could do it. With the advent of the internet and the data accumulation that it has enabled, this has just taken off and we see it everywhere. If you are making a purchase on Amazon and you see no stars and no reviews, it feels like a lot riskier purchase than something with, say 4 and a half stars and twelve hundred reviewers. That’s because the purchase has been crowdsourced.
Darcy:And we’re all doing this. Just out of the gate, when we asked employees, they told us they are already crowdsourcing. Sites like Amazon, yelp, rotten Tomatoes and TripAdvisor where people love to both give and read reviewsAnd these reviews are incredibly valuable to us for two reasons: Because they are voluntary… people really only create a review when they are inspired by something, so that makes them all that much more credible. And because they take into account multiple viewpoints, not just an expert movie critic or restaurant critic.
Darcy:Those multiple points of input really resonate with employees. When employees have the opportunity to notice each other doing something right, and to weigh in on that behavior via recognition they are creating crowdsourced data points that reflect the real time behavior of your employees.In the aggregate this is big data about your talent. You can turn that around and use it in performance reviews with two effects. It legitimizes reviews and expands that single source of manager input – the single point of failure Thad was talking about, by bringing in observations from anyone in the company. So it makes reviews more trustworthy in the eyes of employees. And it makes reviews more accurate, because it is a real-time, ongoing source of data. So when you go into a review you can pull out your crowdsourced performance report and you can say “Thad, I see that you’ve been recognized ten times for innovation over the past year, and four times for safety.”This approach inspires confidence. 80 percent of respondents think the most accurate picture of their performance would come when feedback from their direct supervisor was combined with crowdsourced feedback from others in the organization.Employees have innate trust in the accuracy of crowdsourcing.
Darcy:And they can see the value they will add to reviews. When we asked specifically if they thought crowdsourced data would help reviews, 76% felt that it would.
Darcy: So lets do another poll here. How do you feel about feedback frequency? Is it something you would like to see immediately? Weekly—perhaps in a 1:1 meeting or staff meeting? Or would you prefer it to be covered in a discussion once a quarter or in the annual review?Let’s give a minute or so for you to weigh in on that. Thad, this is a very interesting question from a scientific and psychological perspective. There’s something I talked about in a blog last Spring that I called “Just in Time” Recognition. It plays off of the principles of BF Skinner and operant conditioning and the idea that the most impact is seen from feedback when it is given close to the event that took place. Which is why I think negative feedback should be given right away… I mean if you have an employee who is being rude to customers, you’re not going to wait to talk about that… --although I have actually heard of managers who will save up things in order to have something to talk about in a review. But that psychological effect is also why positive feedback should not wait three—six—twelve months to be given, either. So many managers have trouble with offering immediate feedback, because they lack a structure that supports it. So they wait until they’ve pretty much forgotten the details…Okay, lets look at that poll.
Darcy:Recognition is one of the most effective delivery systems for positive feedback in the workplace. We could easily do a poll on this, but almost no one doesn’t like being recognized for their efforts. What is interesting is that this goes far beyond satisfaction with recognition or employee happiness. In our moodtracker survey, employees told us that being recognized has created a positive change for them in their key performance metrics. Just the experience of being thanked has moved the needle for them in measurable ways…
Darcy:We let respondents check off multiple boxes here and what I think is really remarkable is that most people checked off more than one metric. Productivity was tops on the list, followed by relationships with coworkers, customer service, discretionary effort—that is, the things we do that are going the extra mile for the company—we don’t have to do them but we do—and then attendance, safety and cost-savings. Those last few are probably under-represented because not everyone has initiatives and metrics to measure safety or cost-savings.
Darcy:But most companies do have initiatives to measure engagement in some way or another, and engagement is very important--mainly because it is really a bellwether metric for business results. Companies with highly engaged workforces, according to Gallup – and I jotted this down--Have 27% higher profits, 50% higher sales, 50% higher customer loyalty, 38% above average productivity, 44% higher operating margins, and 48% fewer safety incidents. And that’s just the tip of the proverbial iceberg.Well it turns out that one of the metrics that helps engagement is one you might not have forseen… we have already shown that employees who are recognized are more engaged – Our fall moodtracker last year went into a lot of depth on this, so you should check that out on our website… but what we discovered this summer was that the act of actually recognizing others ALSO gives a big boost to engagement. Those who were given the opportunity to recognize others in the past year were more than twice as likely to identify themselves as highly engaged—regardless of whether or not they had been recognized themselves.
Darcy:Workers also reported that if you want to align them more closely to your company values and your culture, the best way to do that is through positive reinforcement and recognition. This is important because reviews can be really lacking in positive feedback—and by that I don’t mean sunshine and lollipops but feedback that notes and encourages behavior managers want to see more of. And Thad you touched on this, but it is worth underlining. Managers often feel pressured to give constructive criticism—which for too many of them translates into criticism full stop. And of course we know that employees hear negative feedback much more loudly than positive. The ratio of negative to positive needs to be 5:1But it is really important to offer that positive feedback. Research reported in Harvard Business Review’s blog measured the “effectiveness” of strategic business unit leadership teams found that the number one determining factor between the least successful teams and the most successful was the ratio of positive comments to negative comments. So recognition and positive feedback, and of course the opportunity to recognize one’s peers. Performance reviews scored low but clearly still have utility for many employees. And criticism, course correction, negative feedback makes a poor showing in last place with 4%.Sometimes when we bring this up people throw up their hands. I agree that you can’t always just be telling people what they do right if there is a problem. But as always, I’d argue that the negative feedback is something you should be using immediately to triage a problem. If it is an ongoing issue by all means bring it up… but your managers will get a lot more benefit from encouraging the great behavior they see—assuming they see it—and encouraging others to see and recognize it--than they will in looking for things to critique. That’s what workers are telling us here.
Darcy:And then finally, just to make sure we’re on track, we asked employees if they like being recognized for their achievements and accomplishments, and predictably the overwhelming majority said they do. I’m not sure what’s going on with the other 6% here. It may be that they are incredibly modest or shy, or perhaps they just never have been recognized. It’s a little appalling how many people say that they’ve never been recognized at work. In fact, I have a close friend is pretty shy, who works in medical research, and he’s brilliant and has been published in medical journals and is totally looking for a job because he feels like he just is not credited for the work he does. He actually got peeved at me the other day when I received an award in the mail… because his company doesn’t have the Globoforce solution. He said “Well, maybe if I had a program like YOU do, and I got emails that actually recognized and rewarded me for my work, I wouldn’t be looking elsewhere. But instead I work in a conspiracy of silence.”
Darcy: So I promised you that I would tell you how to get a copy of the report. All of these charts are from the report or from the infographic—which we will be sending you in email. But in case you simply cannot wait, you can find the report now on globoforce.com slash resources. The infographic can be found on our blog homepage.
Darcy:And of course, much of our thinking on crowdsourced performance management comes from this book by our CEO Eric Mosley– so if you want to read more, the book is called The Crowdsourced Performance Review. Eric provides a really leading edge vision for how technology is changing how we manage performance, and how we will in the future. If any of this interests you… not only crowdsourcing, but how big data itself is changing performance management, I highly recommend you pick up a copy of this boo. It is available on amazon or you can go to crowdsourced reviews.com for more info.
Conducted from May 16 to June 3, 2013.
Fifth deployment since Spring 2011.
Conducted for Globoforce by independent
market research firm MarketTools.
708 randomly-selected respondents
– United States (aged 18 or older)
– Companies with 500+ employees.
ABOUT THE REPORT
Margin of error of +/- 3.9 percentage points at
a 95 percent level of confidence
with job satisfaction.
WHO ARE FLIGHT RISKS?
Employees who are dissatisfied
with reviews are more
vulnerable to job poaching.
Think reviews are
Do not think reviews
Q: Would you strongly consider a job offer from another company?
WHO IS MOST ENGAGED?
Employees who are satisfied with
reviews are more highly
Satisfied with reviews
WHO IS MOST SATISFIED?
Employees who are satisfied with
reviews are more satisfied with
Satisfied with reviews
Q: Are you satisfied with your job??
WHY DO PEOPLE DISLIKE REVIEWS?
Not a True Indicator of Performance
A Single Point of View
Doesn’t Account for Past Work
TOP FIVE REASONS
What do you think about
A. I love them
B. They are hit or miss
C. They need some serious help
D. They are completely useless
embrace, trust, and
are comfortable with
75% of employees already use
crowdsourcing on consumer sites.
Q: Do you give or read reviews on consumer sites before making a purchase decision?
IS IT ACCURATE?
80% of employees trust
crowdsourced reviews to be
more accurate than a manager
Q: In your opinion, which of the following would provide a more accurate picture of employee performance?
WILL IT IMPROVE REVIEWS?
76% of employees think recognition
data would help make reviews
Q: Do you think crowdsourced recognition (relying on input from multiple sources)
would be helpful data to incorporate into employee performance reviews?
Employees know the
secret to fixing their
THE EFFECTIVENESS MYTH
53% say performance
reviews do not motivate
them to work harder.
WHICH INPUT IS BEST?
73% of employees prefer
unsolicited peer input.
WHAT DRIVES APPRECIATION?
Peer feedback makes
employees feel more
WHAT DRIVES SATISFACTION?
Peer-reviewed employees are
more satisfied with their jobs.
NEGATIVE OR POSITIVE?
89% of employees see
as more motivating.
WHEN SHOULD WE GIVE FEEDBACK?
71% of employees
When Do You Prefer Feedback?
A. As soon as possible after the
moment that inspired it.
C. Quarterly or monthly
WHAT IS THE EFFECT?
has a significant
on key results.
Safety & Compliance
Q: Has being recognized created a positive change in your behavior in any of the following?
RECOGNITION & ENGAGEMENT?
Employees who recognize peers
are more likely to be highly
others in the
others in past
RECOGNITION & CULTURE?
Recognition is most
likely to align
workers with company
values and culture.
Recognition when I do something right
Recognizing my peers
Criticism when I do something wrong
Q: Has being recognized created a positive change in your behavior in any of the following?
WHO LIKES RECOGNITION?
94% of employees say
they like getting recognized
for accomplishments at work
WHAT IS THE POINT?
Employees see development as the
top goal of performance
management, vs. compliance (22%)
and correcting problems (8%).
DOES RECOGNITION IMPROVE REVIEWS?
Employees who are
recognized are more
likely to enjoy reviews.
WHO WANTS CROWDSOURCING?
76% of employees want
crowdsourced recognition data
added to performance reviews