Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results
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Sleeplessness. Stomach aches. Paralyzing fear. These are just some of the symptoms many employees experience in the days leading up to a performance review. And it’s not just your employees dreading them … even 95% of managers aren’t satisfied with their company’s performance management process. So why do we keep up the same ole-same ole review process when no one’s happy with it? Check out our ‘Reinventing Performance Management’ presentation with our performance management experts from Reliant and Love’s Travel Stops & Country Stores to: -- Understand why so many of today’s performance management processes are broken … and how to fix them -- Discover how to implement a review cycle that’s both regular and meaningful -- Learn new performance management strategies to better engage team members and drive productivity -- Find out how to streamline the review process to save time and resources -- Determine whether your company is guilty of “rater bias” and how to avoid it
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Reinventing Performance Management: How to Measure Performance, Boost Employee Engagement & Drive Business Results
- 2. Today’s Presenters Chris Wright, Ph.D. Founder, President & CEO Reliant Colin Wright Field Systems Trainer Love’s Travel Shops & Country Stores
- 3. What We’ll Cover Today Why people dislike the performance review process Why performance feedback is so critical What the current trends in performance management are How to re-invent your performance management system to drive engagement How Love’s Travel Stops & Country Stores has led their industry in performance management
- 4. How do HR leaders feel about their performance management processes? Source: Global Human Capital Trends 2015, Deloitte University Press
- 6. Why?
- 7. Performance feedback is given infrequently or not at all The annual review process is a dated model. Annual reviews make it difficult for managers to remember behavior and work progress throughout the year.
- 8. Performance feedback is given infrequently or not at all Managers often provide as little feedback as possible for fear of not “doing it right” or saying something that could be used against them. Many organizations don’t hold managers accountable for delivering feedback to employees.
- 10. Companies do not measure the right things Most companies struggle to define core competencies. We over-complicate or over-simplify what is being measured. We struggle to integrate goals into the performance management process.
- 12. Managers focus mostly on the negative Companies have not trained managers how to deliver performance feedback in a positive, constructive manner. Constructive criticism is given, but managers don’t work with employees to create development plans. Reviews become more about what employees are doing wrong rather than what they’re doing right.
- 13. People are not invested in the process
- 14. Managers are not invested in the process Reviews are a “copy and paste” from prior years. Assistants complete the review forms. Managers procrastinate until the last minute, and provide no written feedback to support ratings. They pass their own goals down to subordinates.
- 15. Forced distributions have tainted the process and lowered morale
- 16. Forced distributions have tainted the process and lowered morale Only allowing managers to give out a certain number of high scores Forcing managers to place employees into a normal distribution so that many high performers are rated as “average” or “underperforming”
- 17. Forced distributions have tainted the process and lowered morale Implementing across-the-board salary increases despite performance differences Rater bias is most prevalent here; managers rate and reward favorites highest
- 19. Source: Guide Spark Survey, 2014 So why do performance reviews? 89% of employees say they want frequent performance feedback 89% of employees say they want their manager to be direct when giving feedback
- 20. So why do performance reviews? Develop & Manage Talent Identify strengths and weaknesses Identify potential leaders Spend training and development budgets wisely Identify capability gaps to drive hiring, training, succession Drive Business Value Improve customer experiences Improve services Make better products
- 21. Watch out for bad advice “Scrap reviews, you don’t need them … just do goals.” How a person accomplishes a goal is just as important as whether the goal gets accomplished! People can accomplish goals, but also leave a trail of scorched earth and burned bridges in the process.
- 22. Watch out for bad advice “Scrap reviews, you don’t need them … just do goals.” Rating people on critical behaviors and skills is very important – it just needs to be done right! Without reviews it is impossible to offer career progression advice and do succession planning well.
- 23. Is it time to reinvent the performance management process? Source: Deloitte University Press
- 24. Measure the right things Only rate employees on behaviors/competencies that you are willing to invest money to develop. Eliminate ratings on behaviors/competencies that are truly irrelevant to streamline the process. Focus less on past behaviors and actions and more on future behaviors and goals (i.e. the “how” goals were accomplished). Place more emphasis on employee strengths.
- 25. Source: Gallup At work, I have the opportunity to do what I do best every day more likely to earn high customer satisfaction scores 44% more likely to have low employee turnover 50% more likely to be productive 38% Businesses whose employees chose “strongly agree” for this statement were:
- 26. Increase the frequency of feedback Make the process simple (short, mobile- friendly forms). Streamline review forms so that they require no more time to do quarterly than annual reviews. Review performance “when it happens.” Review people within 30-90 days of hire. Conduct targeted, simplified reviews more frequently (i.e. quarterly).
- 27. Source: Deloitte Global Human Capital Trends, 2015 Increase the frequency of feedback “At Deloitte we live and work in a project structure, so it makes sense for us to produce a performance snapshot at the end of each project. For longer-term projects we’ve decided that quarterly is the best frequency. Our goal is to strike the right balance between tying the evaluation as tightly as possible to the experience of the performance and not overburdening our team leaders, lest survey fatigue yield poor data.”
- 28. Simplify rating scales Include qualitative feedback with any behavioral rating to give employees a clear understanding behind the rating. Develop rating anchors that are “positive and developmentally-oriented.” Eliminate “forced- distribution” approaches.
- 29. Source: Deloitte Global Human Capital Trends, 2015 Simplify rating scales “Done poorly, performance management can not only waste valuable time, but also have a negative effect on engagement and retention. Done well, it can be one of the most inspiring and developmental events in an employee’s career, as well as drive performance improvements and organization-wide results.”
- 30. Use the right technology “More than 70% of our respondents are upgrading or have recently upgraded their core HR systems with new cloud platforms.” Source: Deloitte Global Human Capital Trends, 2015 Clients have reduced time spent on conducting performance reviews by 30- 60% using PERFORM™ and have improved the quality of the performance management process.
- 31. Before Performance Management software No visibility Relied on faxing scanned forms Illegible handwriting Storage nightmare Done “when manager thinks of it”
- 32. Schedule evaluations automatically Conduct evaluations remotely View evaluations remotely by management Analyze performance over multiple evaluations Visible to manager and employee Review Competency to identify strengths and weaknesses Enduring performance process Performance Management Today
- 33. Analytics can be used to determine: Best candidates for specific development areas Highest competency, which can be linked to regional challenges Linking action plans to our global e-learning soft skill library means geography does not hinder development HR staff can review evaluations to help identify field managers who require more coaching to reduce claims/turnover Development Advantage
- 34. Long-Term Benefits Environmental improvement Cross-references with standard testing and competency assessment allows for easier mediation in personal disputes Increase in manager retention More-driven staff; eager to improve and qualify for promotions Clearly defined standards for evaluators 80% Field management retention over two-year period
- 36. Measure the right things Increase the frequency of feedback Simplify rating scales Use the right technology Reinventing Performance Management 1 2 3 4
- 37. Q&A Chris Wright, Ph.D. Founder, President & CEO Reliant cwright@reliantlive.com Colin Wright Field Systems Trainer Love’s Travel Shops & Country Stores colin.wright@loves.com
- 38. HRCI Program ID: 252642 Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) Today’s Webinar ACA Compliance Wednesday, Sept. 23 at 1pm ET/10am PT Next Webinar
Editor's Notes
- Ross – add new title slide + HRCI seal
- 60-90% of managers and employees report disliking their performance review process (Deloitte, SHRM, Bersin).
- The annual review process is a dated model. Employees need more frequent feedback. Annual reviews make it difficult for managers to remember behavior and work progress throughout the year. They tend to focus on the month prior to reviews.
- Performance feedback is given infrequently or not at all Many organizations don’t hold managers accountable for delivering feedback to employees. Managers often provide as little feedback as possible for fear of not “doing it right” or saying something that could be used against them.
- Companies do not measure the right things Most companies struggle to define core competencies. We over-complicate or over-simplify what is being measured. We struggle to integrate goals into the performance management process.
- Managers focus mostly on the negative Reviews become more about what employees are doing wrong rather than what they’re doing right. Constructive criticism is given, but managers don’t work with employees to create development plans. Companies have not trained managers how to deliver performance feedback in a positive, constructive manner.
- Managers are not invested in the process Reviews are a “copy and paste” from prior years. Assistants complete the review forms. Managers procrastinate until the last minute, and provide no written feedback to support ratings. They pass their own goals down to subordinates.
- Forced distributions have tainted the process and lowered morale Only allowing managers to give out a certain number of high scores Forcing managers to place employees into a normal distribution so that many high performers are rated as “average” or “underperforming”
- Forced distributions have tainted the process and lowered morale Implementing across-the-board salary increases despite performance differences Rater bias is most prevalent here; managers rate and reward favorites highest
- Without performance reviews how do you … Develop & Manage Talent Identify strengths and weaknesses Identify potential leaders Spend training and development budgets wisely Identify capability gaps – drives hiring, training, succession Drive Business Value Improve customer experiences Improve services Make better products
- Scrap reviews, you don’t need them … just do goals. How a person accomplishes a goal is just as important as whether the goal gets accomplished! People can accomplish goals, but also leave a trail of scorched earth and burned bridges in the process.
- Scrap reviews, you don’t need them … just do goals. Rating people on critical behaviors and skills is very important – it just needs to be done right! Without reviews it is impossible to offer career progression advice and do succession planning well.
- Today’s job market is highly dynamic and transparent. High potential young employers want regular feedback and career progression advice, not just “once and done” reviews.
- Place more emphasis on employee strengths Focus less on past behaviors and actions and more on future behaviors and goals (i.e. the “how” goals were accomplished) Eliminate ratings on behaviors/ competencies that are truly irrelevant to streamline the process Only rate employees on behaviors/competencies that you are willing to invest money to develop
- “At work, I have the opportunity to do what I do best every day.” Businesses whose employees chose “strongly agree” for this statement were: 44% more likely to earn high customer satisfaction scores 50% more likely to have low employee turnover 38% more likely to be productive
- Review people within 30-90 days of hire Review performance “when it happens” Conduct targeted, simplified reviews more frequently (i.e. quarterly) Streamline review forms so that they require no more time to do quarterly than annual reviews Make the process simple (short, mobile-friendly forms)
- “At Deloitte we live and work in a project structure, so it makes sense for us to produce a performance snapshot at the end of each project. For longer-term projects we’ve decided that quarterly is the best frequency. Our goal is to strike the right balance between tying the evaluation as tightly as possible to the experience of the performance and not overburdening our team leaders, lest survey fatigue yield poor data.” Global Human Capital Trends 2015
- Eliminate “forced-distribution” approaches Develop rating anchors that are “positive and developmentally-oriented” Include qualitative feedback with any behavioral rating to give employees a clear understanding behind the rating
- “Done poorly, performance management can not only waste valuable time, but also have a negative effect on engagement and retention. Done well, it can be one of the most inspiring and developmental events in an employee’s career, as well as drive performance improvements and organization-wide results.” Global Human Capital Trends 2015
- Clients have reduced time spent on conducting performance reviews by 30-60% using PERFORM™ and have improved the quality of the performance management process. “More than 70% of our respondents are upgrading or have recently upgraded their core HR systems with new cloud platforms.”
- No visibility Relied on faxing scanned forms Illegible handwriting Storage nightmare Done “when manager thinks of it”
- Schedule evaluations automatically Conduct evaluations remotely View evaluations remotely by management Analyze performance over multiple evaluations Review Competency to identify strengths and weaknesses Visible to manager and employee Enduring performance process
- Analytics can be used to determine: Best candidates for specific development areas Highest competency, which can be linked to regional challenges Linking action plans to our global e-learning soft skill library means geography does not hinder development HR staff can review evaluations to help identify field managers who require more coaching to reduce claims/turnover
- More-driven staff; eager to improve and qualify for promotions Increase in manager retention Clearly defined standards for evaluators Cross-references with standard testing and competency assessment allows for easier mediation in personal disputes Environmental improvement Manager Retention: 80% Field management retention over two-year period
- Measure the right things Increase the frequency of feedback Simplify Rating Scales Use the right technology
- Ross – Add Q&A with photos/titles/email addresses (same as slide 2, email addresses below) cwright@reliantlive.com colin.wright@loves.com
- Add HRCI slide (finally!!) Seal Today’s Webinar: Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) Program ID: 252642 Next webinar: ACA Compliance Wednesday, Sept. 23 at 1pm ET/10am PT