Rethinking  HR  Conven.ons:  The  Future  of  Annual  Reviews  

Performance Management

§  Expecta(ons  set  at  (me  of  hire  

§  Job  descrip(ons  §  Feedback  during  the  

year  +/-­‐  

§  Annual  review  

What is the Purpose for the Annual Review?

§  Money  

§  Deliver  feedback  §  Praise  §  Set  expecta(ons  §  Course  correct  §  Change  behavior  or  

performance  

Are we Accomplishing These Goals?

98  percent  of  645  HR  managers  believe  yearly  evalua(ons  are  not  useful*    

60  percent  of  HR  execu(ves  give  their  own  performance-­‐management  systems  a  grade  of  C  or  below**  *  Achievers  study  

**  World  at  Work/Sibson  Study  

Common Trends and Pitfalls

§  Late  reviews  §  Not  thorough  or  specific  §  Delayed  feedback  that  is  no  

longer  relevant  

§  Sole  focus  on  money  

§  Not  used  as  a  resource  for  management  of  performance  

How it makes your employees feel?

§  Nervous  §  Did  not  recognize  

them  for  their  contribu(on  

§  Perceived  as  inaccurate  

§  Did  not  provide  meaningful  feedback  

Questions to Consider

Do  the  piTalls  outweigh  the  purpose?  

Why  do  we  s(ll  do  these?    

What  can  be  beVer?  

Let’s look at a real case study

What we are trying to accomplish?

§  Top  performance  

§  Engaged  employees  

§  Establish  clear  expecta(ons  §  Set  manager  and  employee  on  the  same  path  

Designing Performance Management starts with understanding PEOPLE and what is expected of

them and what motivates them.

Generational Considerations

§  Baby  Boomers  

§  Gen  X  §  Millennials  

Baby Boomers(Born between 1946 – 1964)

§ Work  centric  

§  Independent  § Goal-­‐oriented  § Compe((ve  

§ Posi(on,  perks  and  pres(ge  § Challenging  projects  § Praise  for  long  hours  §  Title  

Who they are… How they are motivated…

Gen X (Born between 1965 and 1980)

§  Individualis(c  §  Technologically  adept  §  Flexible  § Value  work/life  balance  

§  Freedom  and  responsibility  § Hands-­‐off  management    

§ Change  §  Fun  in  the  workplace  

Who they are… How they are motivated…

Millennials (Born between 1980 and 2000)

§  Tech  savvy  §  Family  centric  

§ Achievement  oriented  

§  Team  oriented  

§ AVen(on  craving  

§  Instant  feedback  § Meaningful  work    

§  Inclusion  § Having  a  voice  

Who they are… How they are motivated…

Motivational Considerations

§  Hamsters  

§  Crash  and  Burners  §  Disengaged  §  Almost  Engaged  

The Intersection

 

You  Are  Here  

Video  Source:  Blessing  White  

The Hamsters

§ Comfortable  (perhaps  too  much)  

§  Low  company  contribu(on  

§ High  sa(sfac(on  Who they are…

§ What  feedback  can  be  given?  

§ How  do  you  increase  contribu(on?  § How  do  you  challenge?  

What to consider…

The Crash and Burners

§  “Quit”  and  stay  §   High  company  contribu(on  

§   Low  sa(sfac(on  

§ Are  goals  aligned?  § Do  they  fit  the  company  culture?  

§ What  is  their  mo(va(on?  

Who they are…

What to consider…

The Disengaged

§  Low  company  contribu(on  

§  Low  sa(sfac(on  § Not  a  fit  for  the  company  

§ Can  you  change  anything?  §  Is  it  worth  changing?  § Have  they  received  feedback?  

Who they are…

What to consider…

The Almost Engaged

§ Reasonably  sa(sfied  § High  company  contribu(on  

§ Highly  employable  

§ How  can  you  keep  them  challenged?  

§ How  can  you  con(nue  to  mo(vate?  

§ What  if  they  lef?  

Who they are…

What to consider…

How to handle the intersection of generations and engagement

Focus on Goals

§  Proac(ve  §  Timely  

§  Construc(ve  §  Challenging  §  Flexible  §  Tied  to  their  mo(va(on  

General Guidelines for Goals

§  Set  goals  at  the  beginning  of  employment  

§  Use  as  a  guide  for  performance  

§  Deliver  feedback  on  achievement  

§  Flex  with  the  business  environment  

§  Customize  to  their  mo(va(on  

§  Tie  to  company  goals  

SMART Goals

§  S(ll  relevant  for  more  tac(cal  posi(ons  

 §  Gives  a  framework  for  

managers  to  write  goals      But  how  do  we  write  goals  for  senior  level  people  and  subjec(ve  roles?  

Setting goals for senior level employees

§  WriVen  by  employee  

§  Specific  with  a  deliverable    

§  Don’t  use  the  words  “con(nue,  maintain,  manage”  

§  Use  words  like  “create,  develop,  deliver”  

Money considerations

§  Budget  §  Timing  

§  Current  structure  §  Performance-­‐based  

§  Employee  ranking  

Making Time for Feedback

What  if  they  are  not  mee(ng?  

§  Skip  level  mee(ngs  

§  HR  Check-­‐ins    

A few words about documentation

“The  inherent  dishonesty  of  reviews  -­‐-­‐  the  different  reviews  by  different  managers,  the  ofen  disconnect  between  reviews  and  objec(ve  measures  -­‐-­‐  is  what  every  plain(ff's  aVorney  yearns  for.  They  love  it  when  there  are  performance  reviews,  because  they  know  they  can  use  them  to  shred  a  defendant's  case.  Show  me  a  paper  trail,  and  I'll  show  you  the  path  to  a  successful  lawsuit.”  

Source:  Samuel  Culbert  

More Meetings, More Time?

§  Think  of  it  as  course  correc(on  

§  Set  small  mee(ngs  throughout  the  year  

§  Incorporate  feedback  into  the  current  status  mee(ng  

§ Document  more  ofen  

Making it happen…

As  with  everything,  this  can  not  be  an  HR  only  ini.a.ve.  This  is  a  culture  and  philosophy  change.    

Guidelines for Change

§  This  is  not  an  overnight  change  §  Talk  to  your  people,  managers,  leadership  

§  Evaluate  what  DOES  work  §  Think  about  training  and  coaching  for  managers    

§  Review  the  business  purpose  of  the  annual  review  

A Better Way

“Performance  previews”      §  Two-­‐sided  §  Straight-­‐talking    §  Focus  on  results  §  Clear  expecta(ons  §  Everybody  can  win  

§  Analyze  your  annual  review  purpose  compared  to  the  overall  performance  results        

§  Understand  your  genera(onal  differences  and  needs  

§  Analyze  your  workforce  engagement  

§  Consider  management  training  for  change,  mo(va(on,  and  goal-­‐selng  

Create  a  program  focusing  on  proac(ve,  real-­‐(me,  results  oriented  feedback    

Key Take Aways

Julie McDonald 763-300-2237 Thank You!!!!