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Showing posts with label performance reviews. Show all posts
Showing posts with label performance reviews. Show all posts

7 ways to rev up employee reviews

When it comes to managing employee performance, many companies miss the mark. And here’s why: Performance management means more than conducting reviews with employees once or twice a year.

If you only provide feedback at review time – sitting across a desk and going point by point through a rigid appraisal form – you’re overlooking many valuable opportunities to mentor, support and guide your employees.

For more relevant, results-driven performance management, you should:

1) Provide regular and immediate feedback year-round. To help employees learn from their mistakes and overcome their challenges, you need to share feedback that’s specific and timely. If you’re plugged into what your employees are doing day to day, and have worked to maintain an “open door” policy with them, confronting them with constructive criticism will be easier.

2) Set the right foundation at the beginning of the year. Create some structure around your expectations for the position and what a positive, productive year should look like. With the employee’s input, take the time to determine a handful of objective, measurable goals. Strive for goals that are challenging, but at the same time attainable.

3) Keep track of daily performance. A performance log lets you jot down notes about an employee’s good or bad behavior, as you observe it or hear about it. This information can be a handy reference for weekly or monthly discussions and certainly, a much more reliable resource at review time than your memory!

=> => OK, you’re keeping the lines of communication open with your employees and providing thoughtful feedback on a regular basis. But like most companies, you also need to complete a written appraisal and conduct a formal, one-on-one review. Here’s how to make the most of it:

4) Be prepared. This should be obvious, but make sure you’ve thought through what you’re going to say, and how you’re going to say it, before sitting down with the employee. Whether you use a standard performance appraisal form or some other written format for rating key performance factors, you still need to talk through the contents and fill in additional details.

5) Lead with the positive. Performance reviews can be as anxiety-inducing for the employee as they are for the manager or supervisor. Reinforce the employee’s strengths (with specific examples, of course) at the beginning of the review to set a positive tone and help put the employee at ease.

6) Make it a two-way conversation. An effective performance review is not a one-sided monologue by a manager. Rather, it should be an open exchange that allows employees to voice their concerns and offer new ideas. Creating this dynamic will help employees feel you value their opinions, which goes a long way toward increasing employee engagement and morale.

7) Focus on what matters to the employee. Job satisfaction plays a huge role in an employee’s attitude and performance. Just as no two employees are exactly alike, there’s no such thing as a “one size fits all” approach to reviews. An effective review should explore the issues that matter most to the employee, whether that means accepting new challenges, working on teams, taking on more responsibility or receiving additional training. If you know what makes an employee “tick”, you can tie more of those motivators into his or her goals and objectives.
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You can go buy the book, and not go BY the book!


I will not throw away my books!
I will not throw away my books!


I ran across this blog post titled “Seriously if you have ever used a canned performance appraisal you should be fired” where the blogger blasts the use of books (Ready-to-Use Performance Appraisals, specifically) to write employee performance reviews.

“One thing being a manager isn’t? Being a color-by-numbers, manager-in-name-only job. If you’re too “busy” to give an honest performance review, get out of the business of being a “manager.” If you have ever used a canned performance appraisal, you should be fired. If you’re an HR trainer and think it’s okay to teach “managers” to use pre-populated, canned performance phrases…well, you should exit stage right, too.”


Whoa! Those are strong words for the manager who might turn to a book or reference guide for a little inspiration or to get “unstuck” when working on an employee’s annual review. While I agree that using only “pre-populated, canned performance phrases” is no way to appraise an employee (and perhaps even a sign of a lazy, ineffective manager), I also don’t think we need to shelve these books and guides completely.

The way I see it, these books are a tool – one of many in a manager’s toolbox that can be used to fix a problem, measure up a situation or build a better team. Just as a great cook might start with a basic recipe, but add his own flair with a dash of this or a splash of that, so can a great manager refer to a well-written book to create a balanced performance appraisal. Not sure how to address an employee’s time management issues? A book might help. Want to outline some new performance objectives to coincide with an employee’s recent promotion? A book might help. “Help” is the operative word here.

It comes down to this: If you’re a good manager, you shouldn’t treat performance appraisals as a once-a-year occurrence and you shouldn’t expect a book to magically write a review for you.

So when it comes to writing performance reviews, don’t go “by the book,” but don’t toss it aside, either. It deserves a spot in the manager’s toolbox!
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Pay-for-performance programs more popular in tough economic times

More companies are paying closer attention to their pay-for-performance programs than the traditional “automatic raise” systems, according to a recent study by the Institute for Corporate Productivity (i4cp).

i4cp polled over 500 companies, revealing that 78% of companies tie pay to performance, with most of the focus directly on solid performers. In large companies with 10,000 or more employees, 84% tie pay to performance.

More than half of the companies surveyed (54%) don’t offer merit raises of any kind to low performing employees. However, merit raises for average and high performing employees varied only slightly. Average performers generally received raises between 3% and 4%, while high performers received between 4% and 5%.

The survey also found that companies are keeping a close eye on the accuracy of their pay-for-performance programs. The majority of companies (71%) said senior management is holding managers accountable for their rating accuracy. To ensure that accuracy, 73% of companies offer training for managers and supervisors who determine employee performance rates.

"Companies are becoming more willing to withhold merit raises for poor performers, but in general they are still not truly distinguishing the top performers from the average," says i4cp research analyst David Wentworth. "This could be due to a fear of creating a perception of unfairness when they are trying to find the fine line between the good and the very good. In this economy, where reductions in force are the norm, companies are really focused on how they treat the surviving employees."

Performance rewards most often come in the form of cash, with 69% of respondents providing a salary increase (74% of large organizations). Another 64% of companies (72% of large companies) offer a one-time cash bonus as a performance reward.

A smaller number of large companies (24%) and only 14% of all companies use stock options. The least popular rewards come in the form of non-monetary perks, with just 14% of companies using non-cash rewards.

The recession has forced pay-for-performance systems to the top of priority lists for many companies. The study found that 44% of companies cite the economy as the main reason for giving their merit-based programs higher priority.

Read more about the i4cp study. Visit the Performance Management section of the HR Library for more information on evaluating and rewarding employee performance.
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What if your employees were volunteers?

There are thousands of ideas out there on how to improve employee performance without having to spend a dime, but “sometimes incentive and motivation programs aren’t necessary.”

That’s the message from Paul Hebert at Incentive Intelligence, ironically a blog dedicated to aligning behaviors and goals through motivation, rewards and recognition.

Last week, Hebert proposed an experiment that any manager, supervisor and coworker can try, that simply involves asking yourself one question:

“What would you do different if everyone you relied on for your business success was a volunteer?”

Volunteers are tied to their work with passion, not pay. They’re able to walk out of an organization whenever they please because they’re working because they want to, not because they have to.

Looking at your employees as volunteers forces you to identify their passion and discover why they’re working at your organization. Whatever their passion or reason for working, managers should create a mission and set goals that are aligned with employees’ passion.

“Managing volunteers means valuing contribution and working to match desire to function within the team to achieve the stated mission. Managing volunteers isn't about directing effort as much as it is about allowing effort to find it's best path.”


Hebert suggests that every manager ask themselves - “What would I do different if all my staff could just walk out tomorrow?”
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How losing can inspire motivation

As this year’s March Madness college basketball competition comes to a close and those lucky few employees collect their winnings from the office NCAA pool, some may be saddened to know they may have picked better brackets if they would have paid attention to a recent study.

A new study out of the Wharton School of the University of Pennsylvania examined 6,000 college basketball teams and found that teams that were slightly behind their opponent at half-time were more likely to win the game.

Wharton professors Jonah Berger and Devin Pope who conducted the survey, titled “When Losing Leads to Winning,” suggest that their findings directly tie into the workplace and how we set employee performance goals.

The researchers compare employees to basketball players in that they both will show more motivation and perform better when they are close to, but still short of, achieving a goal.

"Take any situation where someone is so close to a goal that they can almost taste it," said Berger in a recent Human Resources Executive Online article. "The fact that they're almost there makes them work harder."


Similar to the idea of setting “whisker” goals, Berger recommends that managers set milestones that are within reach of employees’ efforts. While “stretch” goals may be effective in motivating employees when confidence is high, setting smaller goals can spark an increase in performance when times are tough and confidence is waning.

"A lot of tools are used in the workforce to motivate people, such as wages, bonuses, etc. While surely these things can have motivating effects, one should not underestimate the potential importance of psychological motivation as well. This paper shows that the psychological impact of being behind by a small amount can cause significant increases in performance," said Pope.


Whether it’s on the basketball court or in the workplace, the Wharton study shows that small goals have the power to motivate. Pair those small goals with positive employee recognition for their shining accomplishments and help employees get moving on the road to success.
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Achieve more with small goals?

The recession has been creating adverse effects across the business world, from a severe drop in sales to stressed-out employees. Right now, everyone seems to be feeling the pain.

Research shows that financial stress has a direct impact on employee performance and morale, landing many businesses in a state of immobility. Whether it’s from shock or stress, it’s difficult to get moving.

Companies across the country are searching for a stimulus that will cure the paralysis that has been plaguing employees and motivate them to move forward. Instead of overwhelming yourself and looking at it as one giant task, some experts suggest that baby steps are the best way to go.

Setting smaller goals is the secret to improving employee performance during tough times, as Dan Heath and Chip Heath explain in their Fast Company article, Set Smaller Goals: Get Bigger Results.

Dan and Chip believe that during times when we feel empowered, stretch goals are a great way to spark motivation. However, when we're feeling overwhelmed, stretch goals can cause immobility.

They recommend setting "whisker" goals, with targets that fall just slightly lower than average.

From the Fast Company article:

We need these more modest steps because they help us get past the "startup costs" -- the apprehension and fear -- that deter us from doing the tasks we hate.

Adversity calls for change, and change doesn't arrive via a miracle: It arrives via a kick start.

For most organizations, now is not the time to make major changes. Many are focused on working through the adversity in order to land safely on the other side.

Whisker goals could be the solution to kick starting any team that is stuck in a rut. It takes small steps to get the ball rolling.

Start a movement in your organization with small goals and keep that movement going with small recognition. By focusing on the small stuff, you may find that the big problems just don't seem so big anymore.

Do you think it’s possible to achieve more at work with small goals? How does your organization work to get employees motivated during difficult times?

For more information on goal setting and employee recognition, take a look at a few of these posts and HR Library articles:


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Five ways Gen Y will change the corporate world

Generation Y is leaving their messy college apartments behind and are entering the corporate world. To this new generation of workers, the corporate system is as outdated as dial-up Internet and they have big plans to change the workplace for the better.

After watching their parents overwork themselves to the brink of exhaustion and older siblings struggle with Baby Boomer bosses, Gen Y is ready to take on the workplace and mold it into what they want from it.

How will they manage this seemingly enormous task? A recent post at Employee Evolution, written by a savvy Gen Yer, explains exactly how they’ll do it. Here are some of the most insightful ways they plan on taking on the business world:

1. Meetings will be productive and held only when absolutely necessary. “Efficiency is the name of the game with Gen Y.” Factors of an effective meeting: less than 30 minutes, everyone in the room gets on the same page and it encourages people to get work done.

2. A shorter work day where more is accomplished. Gen Y wants to get the most done in the least amount of time and then get out of the office. Work/life balance is a serious issue with this generation and they will stop at nothing to keep it in tact.

3. Administrative assistants return. Gen Y does not like to waste time addressing envelopes, filling out spreadsheets and filing papers. Give that task to someone else and let them do their job. Worried about the cost? Not Gen Y, they’ll pay the extra money to make it happen.

4. Traditional retirements will vanish. Gen Y does not want to waste their youth sitting behind a desk working themselves to death like past generations may have. They want to use this time to explore what life has to offer, not wait until they’re too old to enjoy it. They’ll figure out how to put away enough money in their 401(k)s while also making time for “mini-retirements.”

5. Say goodbye to performance reviews. Gen Y desires constant feedback and communication. Waiting for a semi-annual performance review just won’t cut it for this generation. Managers will have to learn how to provide constant and ongoing feedback to keep these employees happy.

Gen Y won’t be flipping the corporate world on its head all at once, but rather piece by piece. By the time they make it to upper management, Gen Y plans wants work to be a part of their lives, not something that gets in the way.
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It's Not Me, It's You

Have you ever talked to your employee about performance issues and they decided it was a personal attack?

"My boss just hates me. Joe makes mistakes and he never gets in trouble."

It never crosses their mind that there is an actual problem with their work or their attendance or their attitude. "She just doesn't like me" is the only plausible explanation for why they've been written up. Heaven forbid it may be that they actually made mistakes, broke rules or caused problems.

And somehow, they also know any discipline or lack of discipline that everyone else in the company has had. "Sally screws up all the time but she hasn't gotten any warnings." Our victim must have special supernatural powers - the ability to know everything that goes on in your files, your office and your mind. Pretty impressive. I bet if you knew they had that power, you wouldn't have bothered telling them to stop coming in an hour late and leaving fifteen minutes early. Especially since you let Sally and Joe do it all the time!

Accountability...there are just some employees that just don't have any idea what that is or desire to take it on. The ones that take accountability for their mistakes actually stand a chance. As for the ones that don't, if fear isn't a driver that puts them back on track, then it's only a matter of time before they're gone...or you'll wish they were.

I'm sure there are a few horror stories out there...anybody want to share?
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Confronting Poor Performers

Bob, your accounting manager, comes rushing into your office to tell you he's got to fire Joe, the accounts receivable clerk, immediately. Apparently, Joe can't get anything right and if something isn't done, the whole company is going to go down the drain.

UGH!! Sound familiar?

After presenting Bob with the Oscar for "Best Actor in a Workplace Drama," you ask him if he's written up Joe for any specific incidences, or if he's shared Joe's performance issues in his last annual review. Bob gives you a blank stare and tells you he's got too much paperwork to handle as it is. Translation: No. And when you pull Joe's previous performance appraisals from your files, you get every indication that Joe's work has been nothing short of glowing.

Can you terminate Joe? Yes. Should you terminate Joe? Maybe. Is it a good idea to terminate Joe today? A resounding NO.

I've seen it time and time again — managers who are afraid they won't be liked if they give any negative feedback. But if you don't tell employees what's wrong, how can they do anything to improve? I've found that most employees would rather get honest feedback — for the benefit of their own career development — than be left in the dark. Plus, you want to inform them of the next steps should they not improve, so they're not in complete shock if/when you escort them out the door.

Here's more inspiration for you: This could save your company from a lawsuit if Joe decides to sue for discrimination. Although most states let you fire employees "at-will" with no reason or paperwork, it's not a smart move. Joe may claim Bob discriminated against him — even if he knows it's not true. And without the proper paperwork (counseling or warning forms and/or performance reviews with specific expectations), your company may not have any proof to defend itself in court.

My suggestion? Do yourself, your company AND your employees a big favor and deal with the performance issues as they occur — and document, document, document. It shows you are a great manager who not only cares about your company, but also your employees.

- Maurice Rosenberg, Human Resources Manager
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