The document emphasizes the crucial role of HR in enhancing employee performance, stating that effective performance management leads to higher engagement, lower turnover, and increased productivity. It outlines the distinct drivers influencing performance, such as compensation, culture, and personal development, and warns against ineffective performance reviews that may hinder performance. The importance of measuring outcomes to manage them effectively is highlighted, along with resources for further learning.

1. bamboohr.com payscale.com
HR‘s Role in Employee Performance

2. bamboohr.com payscale.com
HR‘s Role in Employee Performance
Rusty Lindquist
VP Strategic HR Insights
BambooHR
Mykkah Herner
Head of Professional Services
PayScale

3. bamboohr.com payscale.com
HR‘s Role in Employee Performance
Why performance matters.
Why HR should care about performance.WHY
What is performance?
What are the drivers? (And which belong to HR?)WHAT
How to leverage the drivers.
How to know when to push vs. pull.
How to not cross the line.
How to get started.
HOW

4. bamboohr.com payscale.com
HR‘s Role in Employee Performance
performance matters.
WHY

5. bamboohr.com payscale.com
HR‘s Role in Employee Performance
Higher employee engagement40%
Lower turnover25%
Growth in customer loyalty18%
Boost to productivity15%
Done Right (Mind Gym):

6. bamboohr.com payscale.com
HR‘s Role in Employee Performance
Increase in performance91%
Increased revenue / employee84%
Decreased cost of hire84%
Done Right (Talent Management LLC):

7. bamboohr.com payscale.com
HR‘s Role in Employee Performance
performance matters.
Employees + Strong Performance =
In short:
Company Success

8. bamboohr.com payscale.com
HR‘s Role in Employee Performance
“All the assets of an organization, other than people, are
inert. They are passive resources that require human
application to generate value. The key to sustaining a
profitable company or a healthy economy is the productivity
of the workforce.” —The Impact of Strategic Human Resource
Management on Organizational Performance

9. bamboohr.com payscale.com
HR‘s Role in Employee Performance
WHY HR should care
…and not just managers

10. bamboohr.com payscale.com
HR‘s Role in Employee Performance
U.S. workers are dissatisfied with how their
performance is reviewed.4/5
Say that annual performance reviews are not an
accurate appraisal of an employees work.46%
Psychological studies have found that at least 30% of
the way performance is currently reviewed actually
results in decreasing employee performance.
30%
Doing it wrong

11. bamboohr.com payscale.com
HR‘s Role in Employee Performance
WHATis performance?

12. bamboohr.com payscale.com
HR‘s Role in Employee Performance
What is performance?
HR’s definition:

13. bamboohr.com payscale.com
HR‘s Role in Employee Performance
What is performance?
Performance indicators:

14. bamboohr.com payscale.com
HR‘s Role in Employee Performance
What is performance?
What performance isn’t
(being busy vs. making progress)

15. bamboohr.com payscale.com
HR‘s Role in Employee Performance
What are the drivers?
INTRINSIC
VS
EXTRINSIC

16. bamboohr.com payscale.com
HR‘s Role in Employee Performance
• Compensation
– Base Pay
– Incentive Plans
– Commissions
– LTI
– Spot Bonus
– Other Bonus
– Non-Cash Incentives
• Tools
• Benefits
• Rewards
What are the drivers?
• Culture
• Purpose/Mission/Vision
• Recognition
• Autonomy
• Fulfillment
• Engagement
• Personal/Professional Development
• Work-Life Balance
• Meaningful Work
• Opportunity to Impact
• Leadership
Intrinsic Extrinsic

17. bamboohr.com payscale.com
HR‘s Role in Employee Performance
When should I use
INTRINSIC
versus
EXTRINSIC

18. bamboohr.com payscale.com
HR‘s Role in Employee Performance
belong to HR?
Culture
Purpose/Mission/Vision
Recognition
Fulfillment
Engagement
Personal/Professional Development
Work-Life Balance
Compensation
Benefits
Rewards
WHAT drivers

19. bamboohr.com payscale.com
HR‘s Role in Employee Performance
How to
LEVERAGE
DRIVERS

20. bamboohr.com payscale.com
HR‘s Role in Employee Performance
How to know when to
PUSHversus
PULL

21. bamboohr.com payscale.com
HR‘s Role in Employee Performance
cross the line
How to NOT

22. bamboohr.com payscale.com
HR‘s Role in Employee Performance
HOW to get started
“What gets measured gets managed.”
—Peter Drucker

23. bamboohr.com payscale.com
HR‘s Role in Employee Performance
Follow BambooHR and PayScale on social media:
bamboohr.com/blog | payscale.com/compensation-today
Thank you!

24. bamboohr.com payscale.com
HR‘s Role in Employee Performance
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