Performance Reviews: It’s Time For A Change...Key Reasons Why Initiatives Fail Employees don’t believe that the review represents their actual role, responsibilities and associated

Performance Reviews: It’s Time For A ChangeSeptember 2017

Agenda

▪ Poll - What you do now

▪ Back to Basics

▪ Challenges

▪ Why Fail

▪ Benefits

▪ Poll on Present Value

▪ Why Change

▪ What is Changing

▪ Old Vs New

▪ Poll – Can you get rid of poor

▪ Continuous

▪ Demo - SuccessFactors

▪ What to Do Now

▪ Questions

Back To Basics: The Real Purpose Of Performance Management

Managing Performance Year-round Can Be Challenging

Yet, Many Initiatives Fail To Meet Expectations

48% of executives say performance processes are

‘weak’ in improving development and driving

business value

Deloitte

71% of organizations say

performance management needed

improvement even re-invention

Brandon Hall

66% of employees say the performance review process

interferes with their productivity

CEB

Key Reasons Why Initiatives Fail

Key Reasons Why Initiatives Fail

▪ Employees don’t believe that the review represents their actual role, responsibilities and associated competencies.– One size fits all review (one employee, one manager)– No ability to buy into the criteria (no manager employee meeting at start)– No clear alignment to the employee and corporate goals– Start of review cycle is when you set development plans

▪ In appropriate use of ratings– No clear objective behaviors associated with each rating– Pay for Performance can impact the results as Managers wants employees to get raises– No clear visibility into how employees stack against each other– No Calibration to reduce the bias or hard/soft scoring of managers

▪ No documentation on performance during the year– End up with evaluating on what they remember from last 30,60, 90 days– People want real time feedback at regular intervals

▪ No Executive or Manager Buy-In– Executives don’t set example in effective use of performance to drive engagement and business outcomes– Managers as a result or individually also don’t buy into the program– Often we see completion of reviews tied to compensation to help with completion

Performance Management Improves Business Results

SAP Performance Benchmarking 2013/14

36%lower employee

turnover

10%higher employee

engagement

25%higher revenue

per employee

What Has Changed?

▪ It is Not just Millenniums - we all want real time and continuous feedback.

Latest Terms

▪ The way we work has changed

▪ Performance is no longer solely about employee it is about impacting teams, divisions, departments and organizations

– Creating a shift to measure behaviors, ethics, trust VS Job related skills and competencies

▪ Want to work like they play

▪ No more one way communication (Manager to Employee)

▪ Communication is both vertical and horizontal

▪ Inspire and Empower

▪ Continuous Feedback

▪ Coaching

▪ Mobile

▪ Pulse Surveys/Check Ins

According to Deloitte Research

▪ 8 Percent of global organizations claim that their performance management process is worth the time spent on it

▪ Important decisions about whom to promote, how much of a raise to give, and whom to move into a new role are getting easier and better through data. Ninety-one percent of companies that have adopted continuous performance management say that they now have better data for people decisions, making major progress in removing bias and discretion in promotion and advancement.

Old Vs New

Proactive

The needs of your business drive the process

Continuous Performance Management

Employees keep managers up to date and get the guidance they need

Continuous Performance Management

Capabilities

Let’s Look at Technology

We will take 20 minutes to review an online solution and then rap up with suggestions on how to start.

DEMO

Take Action

▪ START - Systems manual or automated with technology are a work in progress. You need to start!

▪ Do a diagnostic in your organization and understand your goals for doing performance management– Are you trying to eliminate poor performers; uncover top talent; provide differentiation for

compensation; drive business goals; etc.

▪ Analyze why your present process is not working

– To complex

– Takes too much times

– Not a good representation of employees contributions

▪ Change or introduce control of performance process to not be specific to manager– Empower and Inspire your employees to encourage and engage in regular communication

– Instill a culture of coaching

– You may need to invest in hosting Internal or Externally lead sessions to achieve these results

▪ Solutions only work if all parties see the value in the process – What’s In It For Me (WIIFM). Make sure everyone wins (individual, manager, team, business)

Questions

Terri [email protected]