Perform To Survive

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Research on employee performance. What really impacts individual employee performance? See the answers here!

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Perform To Survive

  1. 1. Excellence Achievement LLC December 17, 2008 Prepared by John R. Eve
  2. 2. <ul><li>… .associates performing effectively on the job to create returns to the company in terms of increased revenue, cash flow, and profits. </li></ul>
  3. 3. People Performance Research <ul><li>Conducted by The Corporate Leadership Council: “ Building the High Performance Workforce: A Quantitative Analysis of the Effectiveness of Performance Management Strategies” </li></ul><ul><li>Sample used included: </li></ul><ul><ul><li>19,000 Employees </li></ul></ul><ul><ul><li>34 organizations </li></ul></ul><ul><ul><li>7 Industries </li></ul></ul><ul><ul><li>29 Countries </li></ul></ul>
  4. 4. Research - Key Discoveries <ul><li>There is no “magic bullet” to enhance performance, multiple “levers” must be carefully selected and then used. </li></ul><ul><li>It is important to consider indirect and direct impact on performance when selecting which levers to use. </li></ul><ul><li>Financial incentives impact attraction and retention but do not directly improve employees’ abilities to do their day-to-day jobs. </li></ul><ul><li>Personal connection to work has more direct impact on individual performance than financial rewards. </li></ul><ul><li>Recognizing and rewarding achievement has strong impact on high performance attitudes. </li></ul><ul><li>Training is most effective when it is functionally relevant and job specific. </li></ul>
  5. 5. Research - Key Discoveries <ul><li>The biggest drivers of individual performance are: </li></ul><ul><ul><li>fair, accurate, and immediate informal performance feedback (+39.1%), </li></ul></ul><ul><ul><li>a culture of managed risk taking (+38.9%), </li></ul></ul><ul><ul><li>emphasizing performance strengths during formal reviews (+36.4%), </li></ul></ul><ul><ul><li>a clear understanding of performance standards (+36.1%), </li></ul></ul><ul><ul><li>a culture of clear communication (+34.4%), </li></ul></ul><ul><ul><li>matching employees with what they do best (+28.8%), </li></ul></ul><ul><ul><li>providing solutions for day to day challenges (+23.7%). </li></ul></ul>Confidential
  6. 6. Research - Key Discoveries <ul><li>Performance improvement methods that hurt performance or lack direct impact: </li></ul><ul><ul><li>frequently changing projects and assignments (-27.8%), </li></ul></ul><ul><ul><li>emphasizing performance weaknesses (-26.8%), </li></ul></ul><ul><ul><li>increasing the number of formal performance reviews (-1.0%), </li></ul></ul><ul><ul><li>using rank ordering (-0.1%) </li></ul></ul><ul><ul><li>presence of an employee development plan (+1.4%), </li></ul></ul><ul><ul><li>treating best and worst performers differently (+1.5%). </li></ul></ul>
  7. 7. Performance Levers - Impacts Performance Lever Indirect Impact - High Performance Attitudes Direct Impact Individual Performance Improvement Fair and accurate feedback Discretionary Effort = + 23.3% Commitment = +40.0% Match with Job = +40.6% +33.6 % +39.1% Culture of risk taking Discretionary Effort = + 18.4% Commitment = +45.7% Match with Job = +33.4% +29.7% +38.9% Emphasizing performance strengths during formal reviews Discretionary Effort = + 14.0% Commitment = +21.2% Match with Job = +20.5% Having Necessary Resources = +23.2% + 31.2% + 36.4%
  8. 8. Performance Levers - Impacts Performance Lever Indirect Impact - High Performance Attitudes Direct Impact Individual Performance Improvement Clear understanding of performance standards Discretionary Effort = + 19.0% Commitment = +34.0% Match with Job = +36.1% + 31.4% +36.1% Internal Communication Discretionary Effort = + 17.1% Commitment = +43.2% Match with Job = +34.7% +26.7% +34.4% Matching employees with what they do best Discretionary Effort = + 29.3% Commitment = +49.1% Match with Job = +65.7% +25.1% +28.8%
  9. 9. Performance Levers - Impacts Performance Lever Indirect Impact - High Performance Attitudes Direct Impact Individual Performance Improvement Providing solutions for day to day challenges Discretionary Effort = + 21.9% Commitment = +42.9% Match with Job = +39.4% +17.6% +23.7% Enjoyment of work Discretionary Effort = + 37.5% Commitment = +57.4% Match with Job = +65.8% 0% +13.1% Recognizing and Rewarding Achievement Discretionary Effort = + 19.0% Commitment = +35.9% Match with Job = +35.5% 0% +4.4%
  10. 10. Performance Levers - Impacts Performance Lever Indirect Impact - High Performance Attitudes Direct Impact Individual Performance Improvement Perceived Reward – Size of Bonus Discretionary Effort = + 4.9% Commitment = +18.1% Match with Job = +7.5% 0% +2.0% Treating best and worst performers differently Discretionary Effort = + 5.5% Commitment = +23.2% Match with Job = +13.1% Team Strength = +29.3% 0% +1.5% Presence of Employee Development Plan Discretionary Effort = + 0.5% Commitment = -2.0% Match with Job = +0.2% Having Necessary Resources = +0.5% +1.4% +1.4%
  11. 11. Performance Levers - Impacts Performance Lever Indirect Impact - High Performance Attitudes Direct Impact Individual Performance Improvement Increased number of formal performance reviews Discretionary Effort = - 0.5% Commitment = -4.8% Match with Job = -3.8% Having Necessary Resources = -4.7% -0.1% -1.0% Emphasizing performance weaknesses during formal reviews Discretionary Effort = - 6.3% Commitment = + 2.2% Match with Job = -6.6% Having Necessary Resources = -5.4% - 25.2% -26.8%
  12. 12. Is it important to be a great place to work? <ul><li>Fortune 100 Best Companies to Work For showed: </li></ul><ul><ul><ul><li>Average Stock Market index of Fortune 100 = 25.2% </li></ul></ul></ul><ul><ul><ul><li>100 Best in December 1997 = 72.9% </li></ul></ul></ul><ul><ul><ul><li>100 Best in January 2006 = 133.8% </li></ul></ul></ul>
  13. 13. Is Recognition Important? Source: The Carrot Principle, by Adrian Gostick to be released January 2007. A recognition effectiveness study which used 200,000 participants across many industries and cultures. % Employees who: Companies that provide Low Recognition Companies that provide High Recognition Are Satisfied with Jobs 7.0% 46.0% Are Likely to Stay 24.7% 70.0% Have High Morale 8.0% 70.9% Are Highly Engaged 8.3% 73.0%
  14. 14. What does it all mean? <ul><li>People will perform…. when they have a heightened emotional and cognitive connection to their jobs, co-workers, managers, and the organization that influences them to apply effective effort on the job*. </li></ul><ul><li>Bottom-line: We need to create an environment where all our people are willing and able to do those things that contribute to organizational success. </li></ul><ul><li>So …how do we continue our journey to improve individual performance and how much is it worth? </li></ul>Source: Adapted from The Conference Board Employee Engagement definition
  15. 15. <ul><li>There a number of things you can do now to do more </li></ul><ul><li>with the employees you have today! </li></ul><ul><li>Be open minded and stop doing things that do not work and have never worked! </li></ul><ul><li>Realize indirect impacts are important to raise High Performance Attitudes. </li></ul><ul><li>Utilize good assessments to determine performance perception and reality </li></ul><ul><ul><li>CheckPoint 360 – Best Multi-rater tool available today with online training available </li></ul></ul><ul><ul><li>Profile XT – It is what is on the inside that makes the outside successful! </li></ul></ul><ul><ul><li>Profiles Performance Indicator - A manual for employees and teams </li></ul></ul><ul><li>Meet with me for a free, powerful performance review. </li></ul>John R. Eve President – Excellence Achievement LLC [email_address] www.excellence-achievement.com
  16. 16. Confidential
  17. 17. Confidential
  18. 18. Confidential

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