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The value of Employee Performance Management
A brief description of the current state of performance appraisal systems, and the value of making changes
The value of Employee Performance Management
- 2. How do AnnualPerformance Reviews make you feel… • Anxious? • Grumpy? • Unhappy? • Do they go something like this…? http://www.youtube.com/watch?NR=1&fea ture=endscreen&v=U7Low0p7ydQ © 2011 Talent Management LLC 2
- 3. Performance reviews arebroken… • 4 out of 5 U.S. workers are dissatisfied with their job performance reviews1 • 46% of respondents said that annual performance reviews are not an accurate appraisal of an employee’s work2 • Psychologists found that at least 30% of the performance reviews ended up in decreased employee performance3 (1) Reuters; (2) Globoforce/SHRM; (3) Psychological Bulletin © 2011 Talent Management LLC 3
- 4. Key HR Problems… • 45% of key people will leave their positions upon economic recovery1 • 72% of workers are not engaged in their work2 • 18% of disengaged employees actually undermine their co- workers’ success2 • Total cost to business…$370B/year2 Source: (1) Employment Dynamics & Growth Expectations, (2) Gallup © 2011 Talent Management LLC 4
- 5. Survey says… • 78 % of U.S. workers said being recognized motivates them in their job • 69 % stated they would work harder if they felt their efforts were better recognized Source: Globoforce Mood Tracker © 2011 Talent Management LLC 5
- 6. Non-financial Incentives WorkBest More Effective Used Less © 2011 Talent Management LLC 6
- 7. Employee Performance Management What is it? Performance appraisals and Goal and objective management assessments Competency management Performance appraisal management 90-360 assessments Developmental planning Career path management Succession management Talent pool management Coaching Talent review/assessment Compensation planning Pay for performance support Visualization (graphs, grids, etc.) © 2011 Talent Management LLC 7
- 8. Economic Impact forBusiness • 91% increased employee performance • 84% decreased cost of hire • 84% increased revenue per employee • 66% improved their ability to determine projected growth by job category • 49% improved their ability to forecast annual retirement rates © 2011 Talent Management LLC 8
- 9. Actionable development plansalone result in twice the revenue per employee and a 27% lower turnover rate Source: Bersin & Associates © 2011 Talent Management LLC 9
- 10. What if PerformanceAppraisals… • Happened throughout the year • Were relevant to the skills and metrics pertaining to your job • Provided feedback from other people besides your manager? © 2011 Talent Management LLC 10
- 11. What if YourPersonal Development Plan… • Helped you set relevant goals and objectives • Suggested appropriate training and development • Included coaching tips for you and your manager? © 2011 Talent Management LLC 11
- 12. What if YourPersonal Development System… • Helped you track, manage, revise and update your goals • Reminded you of due dates and upcoming commitments • Provided your manager with insight into your progress? © 2011 Talent Management LLC 12
- 13. What if therewas an Employee Performance Management System that’s… Simple, Affordable, and Flexible? © 2011 Talent Management LLC 13
- 14. Talent Snapshot® BusinessModel • Software as a Service LP Michelle Green MP VHP VHP Jenny Sweney Susan Michaels • Employee Performance Adam Simpson Nate Wood Hal Gorden Management system ? Mike Smith Brent Foster Ian Stacy • $159/year/employee LP MP HP Leroy Smith VHP • Affiliate Network is key ? Kristen Richards Yolanda Price Laura Roman to Growth LP MP Alice Zender Jessica Grims MP MHP Megan Gant ? Paul Conner Lynda Ross Calvin Underwood • HR and TM consultants, Ethan Bromer Howard Hill Frank VanDyke trainers and coaches VLP LP LMP Tamsco MP • Strategy and OD experts ? ? ? Ralph Paul Jackson Walter Emerson Gail • Simple, flexible, Conrad affordable © 2011 Talent Management LLC 14
- 15. Talent Snapshot® EmployeePerformance Management System… • Includes employee appraisal on actual performance and predictive, job-specific skills • Targets training and coaching • Sets performance goals and objectives • Defines, schedules, executes and manages/tracks development and objectives • Provides ongoing feedback to the employee • On the drawing board: Succession, Career, Leadership Management and Compensation Planning, more enhancements © 2011 Talent Management LLC 15
- 16. Business Case forEmployee Performance Management Systems • Better overall business results - good people practices can increase a company’s value by as much as 30%1 • Insight into your talent pool – stars, diamonds in the rough and questionable performers • Organizational alignment – right people, in the right jobs at the right time • Retain top performers – 27% lower turnover rate • ROI on training dollars – skills mapped to training (1) Source: Watson Wyatt © 2011 Talent Management LLC 16
- 17. Business Case forEmployee Performance Management Systems • Better overall business results - good people practices can increase a company’s value by as Cha-Ching!!! much as 30%1 • Insight into your talent pool – stars, diamonds in the rough and questionable performers • Organizational alignment – right people, in the right jobs at the right time • Retain top performers – 27% lower turnover rate • ROI on training dollars – skills mapped to training (1) Source: Watson Wyatt © 2011 Talent Management LLC 17
- 18. What’s New: TheWisdom of Crowds aka “Crowdsourcing” • Collective knowledge trumps individual knowledge • A truly all- encompassing performance feedback loop • As Peter Drucker said, “What gets measured gets managed.” © 2011 Talent Management LLC 18
- 19. Conclusion • People hate annual performance reviews • Statistics indicate non-financial incentives work best • Employee Performance Management is being pursued by top performing companies • Talent Snapshot® is available for managing appraisals and development plans • Crowdsourcing is the latest trend © 2011 Talent Management LLC 19