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!!!!
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