Taking The Pain Out of Performance Appraisals

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Taking The Pain Out of Performance Appraisals

April 7, 2011

QuestionsQuestions

• If you have questions during the presentation, please submit them using the “Questions” feature

• Questions will be answered at the end of the webinar

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The Average Performance ReviewThe Average Performance Review

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Facts about Performance AppraisalsFacts about Performance Appraisals

• 16% of employees don’t do performance appraisals or have a review process

• 58% of employers only do for exempt employee or manager and above level

• 75% + tie the review to merit increase• 86% of employee believe that

performance appraisal/development are important or highly important to job satisfaction

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Why Bother?Why Bother?

Inaccurate Performance Review + Pay Increase = Decreased Motivation

Inaccurate Performance Review + No Pay Increase = Decreased Motivation

No Performance Review + No Pay Increase = Decreased Motivation

No Performance Review + Pay Increase = Decreased Motivation

Accurate Performance Review + Pay Increase = Motivation

Accurate Performance Review + No Pay Increase = Motivation

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Performance Management vs. Annual ReviewPerformance Management vs. Annual Review

Performance Management

Creates a work environment to ensure people to perform to best of abilities and sets them up to succeed

Annual ReviewAnswers questions

– Impact on income– Skill assessment– Contribution– Career

Advancement

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Performance ManagementPerformance Management

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• Start with a clear job descriptions• Select the right person• Establish objectives, goals and work plans• Provide effective orientation, education and

training• Give on-going coaching and feedback• Conduct quarterly performance development

discussion• Design effective compensation and recognition

programs• Offer promotional and career development

opportunities• Always conduct an exit interview

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Performance Checklist Performance Checklist

• Define– Define the purpose of the job– Define goals with measurable outcomes– Define the priority of each job responsibility and goal– Define performance standards for each responsibility

• Prepare– Have interim discussions– Keep records– Use other feedback tools (360 and self evaluations)

• Prepare– Setup meeting time– Establish employee pre-work– Collect data– Develop a plan for the meeting– Complete the performance review form

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The Performance Development MeetingThe Performance Development Meeting

• Private, neutral meeting space• Allow the employee to state goals, success and

future development• Review the performance development form• Update with any agreed changes• Set goals, discuss how impact business• If poor performance establish improvement plan

and consequences• Sign the form together (provide employee a copy)• Set a time frame for follow upNothing should be a real surprise to manager or

employee at the meeting

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Performance Management ToolsPerformance Management Tools

Process Automation• Success Factors• HotlinkHR• Halogen• Authoria• Promatec• Emptrak

• Resources• Effective Phrases for

Performance Appraisals by James Neal

• Performance Appraisal Phrase Book: The Best Words, Phrases, and Techniques for Performance Reviews by Corey Sandler and Janice Keefe

• 2600 Phrases for Effective Performance Reviews: Ready-to-Use Words and Phrases that Really Get Results by Paul Falcone

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DefinitionsDefinitions

• Documentation: The process of creating a paper trail to record data such as discussions had with employee, results of those discussions, both supervisor and employee comments, agreements between the two.

• Objectives or Results: Statements of what an employee is supposed to achieve.  • Ongoing Performance Communication :Communication between manager and employee all

throughout the year to ensure that problems are identified early, and so there are NO SUPRPRISES during the performance appraisal. 

• Performance Review :Usually refers to a meeting to review and evaluate performance, involving supervisor and employee. Often done once a year, but to be effective performance reviews, or at least informal meetings to discuss performance should be undertaken at least every few months.

• Performance Appraisal  : The regular (usual annual) process where an employees performance for the year is assessed by manager and/or employee. It is only one part of the performance management approach. Usually means the same as "performance review".

• Performance Diagnosis  : Often performance problems are a result of a number of factors, not just the fault of the employee. Performance management aims at improving performance, and to do so both manager and employee need to work together to identify barriers to great performance and work to overcome them. 

• Performance Management : The larger process of defining what employees should be doing, ongoing communication during the year, linking of individual performance to organization needs, and the evaluating of appraising of performance. 

• Performance Planning  : The process of communication between manager and employee that results in MUTUAL UNDERSTANDING of what the employee is to be doing during the next period of time. Often includes setting objectives and standards of performance.

• Progressive Discipline : The process of addressing performance difficulties by first trying to help, then setting up increasingly strong consequences for failure to reach the desired levels of performance.

• Ranking Scales : A way of evaluating staff by comparing them to each other, so there is a best, a second best, and so on. This is REAL SERIOUS TROUBLE, and almost always destructive. (see articles section for more information).

• Standards of Performance : Mutually agreed upon criteria used to describe how WELL an employee must perform, written to reduce subjective judgment. 

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Questions and AnswersQuestions and Answers

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QUESTIONS?

Contact InformationContact Information

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The recorded webinar and presentation slides will be emailed to you today including your local representative’s contact information.

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