Performance Management and Rewards Survey 2017 Introduction

Transcription

1 Performance Management and Rewards Survey 2017 Introduction Many organizations are evaluating the design and effectiveness of their performance management programs and are assessing the ripple effects of any changes on rewards programs. This survey, conducted by WorldatWork with underwriting support from Globoforce, is intended to identify current performance management practices. It also gathers data on how organizations are rewarding performance and how performance management may be changing in their organization. We appreciate your time in completing the study. It should take you no more than 15 minutes to complete. Instructions: If you would like to change or revisit a previous question, please use the Back button provided in the survey. If you need to leave the survey and resume at a later time, simply close the browser window and the question on which you left off will reopen when you return. Once a questionnaire is submitted ( Submit Responses button at the end of the survey), questions and answers cannot be revisited or changed. A PDF of the questionnaire is available for your convenience, but survey responses will only be accepted through online data collection. Faxed or mailed submissions will not be accepted. Please note that questions online may be skipped based on previous answers that are not detailed in the PDF version of the survey. Therefore, you may spend time reviewing questions in the PDF that you will not see in the online version of the survey due to previous answers submitted.

2 PERFORMANCE MANAGEMENT Q5 What are the top three goals of your organization s performance management program? Please select up to three 1 Compliance with legal regulations 2 The ability to differentiate rewards based on performance 3 Attaining (or exceeding) financial and operational goals 4 Increased individual accountability 5 Improved resource allocation of people and budgets 6 Increased transparency and visibility of performance 7 Improving performance 8 Line of sight to organizational goals 9 Developing employees for future opportunities 10 Other, please specify Q10 Which of the following performance management practices does your organization use? Please select one response per row. We do not currently We do not currently We currently use We currently use use this practice, use this practice this practice and this practice, but but are considering and have no plans don t anticipate are considering implementing it to implement it in dropping it in the dropping it in the within the next 1-2 the near future. near future near future years Formal performance appraisals/reviews [HYPERLINKED DEFINITION: Appraisals and 1 reviews that follow a standard format and timeline] Formal performance ratings [HYPERLINKED DEFINITION: Any numeric, categorical or 2 other performance rating where the levels are defined by the organization and employees are made aware of their own rating.] Informal performance ratings (used for pay decisions, but not shared with employee) 3 [HYPERLINKED DEFINITION: Ratings that are conducted by the manager and/or HR to determine base pay and or bonus decisions, but are not shared with the employee] Forced ranking [HYPERLINKED DEFINITION: Forcing a manager to rank employees 4 against one another to determine relative positioning for pay or other employment decisions] Forced Distribution [HYPERLINKED DEFINITION: Forcing a manager to allocate a 9 prescribed percentage of employees in each performance category to determine relative positioning for pay or other employment decisions.] Recommended Distribution [HYPERLINKED DEFINITION: Managers are provided a 10 general recommendation for how ratings are allocated but are ultimately free to determine where their employees fall.] Rating Category Cap [HYPERLINKED DEFINITION: Managers cannot rate more than X% of 11 their employees in one or more performance categories (usually applies to topperformance categories).] Rating Category Minimum [HYPERLINKED DEFINITION: Managers cannot rate less than 12 X% of their employees in one or more performance categories (usually applies to lowerperformance categories).]

3 Frequent performance check-ins (at least quarterly) [HYPERLINKED DEFINITION: Formal or informal performance assessments conducted at least every three months to give the employee an on-going sense of his/her performance] 360-degree review [HYPERLINKED DEFINITION: Assesses employee performance from several sources (i.e., peers, subordinates, supervisors, customers)] Peer feedback process (not crowdsourcing) [HYPERLINKED DEFINITION: An appraisal process whereby peers can evaluate their colleagues in a formal manner, that is not part of crowd-sourcing or a broader 360-review] Crowd-sourced feedback [HYPERLINKED DEFINITION: Incorporates systematic use of peerdriven feedback and/or social recognition as part of performance assessment; informal and more free-form than peer-review or 360-review.] Q15 Q20 Have you eliminated formal performance reviews or appraisals in the last two years? 1 We eliminated these programs more than two years ago 2 We eliminated these programs within the last two years 3 We ve never used these programs How likely are you to consider eliminating the use of formal performance ratings in the next 1-2 years? 1 Not at all likely 2 Not very likely 3 Somewhat likely 4 Very likely 5 Extremely likely Formal Performance Appraisals/Reviews Q25 Q40 Q50 How often does your organization conduct formal performance appraisals/reviews? If it varies by department/role, please select the frequency that is most common. 1 Every other year or less often 2 Annually 3 Every 6 months 4 Quarterly or more often Does your organization use a technology platform or software to facilitate formal performance appraisals/reviews? 1 Yes, we use a third-party vendor platform 2 Yes, we use a home-grown/developed in-house system We don t use any technology platforms to facilitate formal performance 3 appraisals/reviews. Does your organization conduct reward conversations (i.e., deliver individual merit increase communications) at the same time as the formal performance appraisal/review? 0 No 1 Yes

4 Formal Performance Ratings Q60 Q90 How many performance ratings levels/categories are used when assessing individual performance? (Please do not include levels such as too new to rate, new hire, etc.) 1 Two 2 Three 3 Four 4 Five 5 Six or more 6 Continuous scale (e.g., percentage score) How were employees distributed across these performance categories for 2016 or the last performance period? Most people fell into the middle, with a bell-shaped distribution around the middle 1 (about as many employees were rated above average as below average) 2 The spread is skewed toward higher performance ratings 3 The spread is skewed toward lower performance ratings 4 Employees are spread approximately evenly across performance ratings 5 We do not track this information Informal Performance Ratings Q130 Q140 Does your organization document informal performance ratings? 0 No 1 Yes Where does your organization document informal performance ratings? 1 In the employee s permanent HR file/system record 2 In the manager s file 3 Other, please specify: Forced Ranking Q150 How broadly is forced ranking applied in your organization? Organization-wide: all employees are ranked against each other, regardless of 1 department. Unit/location-wide: all employees in a certain location and/or unit are ranked against 2 each other Team-wide: all employees on a particular team or department are ranked against 3 each other 4 Per manager: each manager ranks his/her own direct reports against each other 5 Other, please specify:

5 Performance Check-ins Q170 Q180 Q190 Q200 Q210 How frequently does your organization conduct performance check ins? 1 Quarterly or less often 2 Every other month 3 Monthly 4 Bi-monthly 5 Weekly 6 Daily 7 Other, please specify: Who is responsible for initiating check ins? 1 Managers 2 Employees 3 Either managers or employees can initiate Are frequent performance check ins required? 0 No 1 They aren t required, but they are strongly encouraged 2 Yes, they are required Are frequent performance check ins formally tracked to ensure they happen? 0 No 1 Yes How are frequent performance check ins documented? Please select all that apply. 1 Check-ins are not documented MUTUALLY EXCLUSIVE 2 Hard copy documentation for manager's files 3 Hard copy documentation for HR files 4 Documentation through a lightweight mobile or web app 5 Formal documentation in the HR system 6 Other, please specify: Calibration C10 Does your organization conduct calibration sessions among leadership to create a shared understanding of a framework(s), definition(s) or level(s) relating to performance management and/or rewards allocation? 0 No 1 Yes 2 Not sure

6 C20 C30 C40 What topics are calibrated among leadership? Please check all that apply. 1 General formal performance rating definitions 2 General informal performance rating definitions 3 Individual performance (category and/or rank) 4 Individual leadership potential 5 Individual merit increase amounts 6 Individual bonus award amounts When calibrating decisions for individual employees (performance level, leadership potential, merit increases, bonus awards, etc.), how many employees are typically discussed in one calibration session? More than 100 When calibrating decisions for individual employees (performance level, leadership potential, merit increases, bonus awards, etc.), how many levels of leadership typically participate in a calibration session? 1 One 2 Two 3 Three 4 Four 5 Five or more Rewarding Performance R10 Which of the following does your organization actively use to provide differentiated rewards for employees based on performance? (A clause that eliminates poor performers from a program s eligibility does not qualify as differentiated rewards. ) Please check all that apply. 1 Base pay increases (e.g. merit increases) 2 Cash bonuses, incentives or lump-sum awards (excluding nominal spot cash recognition awards) 3 Workplace flexibility (i.e., telework, flex-time, 4/10 schedule, 9/80 schedule, etc.) 4 Extra paid time off 5 Parking benefits (e.g. free or preferred parking) 6 Preferential workstations/offices 7 Spot recognition cash bonuses 8 Noncash peer-to-peer recognition 9 Other noncash rewards; please describe: 10 None of the above

7 R20 R30 R40 R50 What is the basis for differentiation of performance based pay increases (e.g., merit increases) at your organization? Please check all that apply. What is the basis for differentiation of cash bonuses, incentives and/or lump-sum awards at your organization? Please check all that apply. What is the basis for differentiation of workplace flexibility privileges (i.e., telework, flex-time, 4/10 schedule, 9/80 schedule, etc.) at your organization? Please check all that apply. What is the basis for differentiation of extra paid time off at your organization? Please check all that apply.

8 R60 R70 R80 What is the basis for differentiation of parking benefits (e.g. free or preferred parking) at your organization? Please check all that apply. What is/are the basis(es) for differentiation of preferential workstations/offices at your organization? Please check all that apply. What is/are the basis(es) for differentiation of non-cash awards at your organization? Please check all that apply.

9 DEMOGRAPHICS D10 Which of the following best describes your employer? 1 Private sector, publicly traded (stock ticker: ) 2 Private sector, privately held 3 Nonprofit/not-for-profit 4 Public sector D20 D30 D40 Please choose the total number of full-time employees (FTEs) your organization employs worldwide: 1 Fewer than ,000 to 9, to ,000 to 19, to ,000 to 39, ,000 to 2, ,000 to 99, ,500 to 4, ,000 or more What was the total revenue (money generated by your company from sales of goods or services on a worldwide basis) for your organization at the end of 2016? (Please report in U.S. dollars.) 1 Up to $30 million 6 Between $1 billion and $3 billion 2 Between $30 million and $100 million 7 Between $3 billion and $5 billion 3 Between $100 million and $300 million 8 Between $5 billion and $8 billion 4 Between $300 million and $600 million 9 Between $8 billion and $10 billion 5 Between $600 million and $1 billion 10 More than $10 billion Does your organization have operational units (divisions, subsidiaries, groups or plants) in any of the following countries? 1 United States 11 Japan 2 Australia 12 Mexico 3 Belgium 13 Netherlands 4 Brazil 14 Russia 5 Canada 15 Singapore 6 China 16 Spain 7 France 17 Sweden 8 Germany 18 Switzerland 9 India 19 United Kingdom 10 Italy 20 Other, please specify:

10 D50 D60 D70 D80 Please choose one category that best describes the industry in which your organization operates: 1 Agriculture, Forestry, Fishing and Hunting 2 Mining, Quarrying, and Oil and Gas Extraction 3 Utilities 4 Construction 5 Chemical Manufacturing (includes Pharmaceuticals) 6 Computer and Electronic Product Manufacturing 7 All Other Manufacturing 8 Wholesale Trade 9 Retail Trade 10 Transportation and Warehousing 11 Information (includes Publishing, IT Technologies, etc.) 12 Finance and Insurance 13 Real Estate and Rental and Leasing 14 Consulting, Professional, Scientific and Technical Services 15 Management of Companies and Enterprises 16 Administrative and Support and Waste Management and Remediation Services 17 Educational Services 18 Health Care and Social Assistance 19 Arts, Entertainment, and Recreation 20 Accommodation and Food Services 21 Other Services (except Public Administration) 22 Public Administration (includes government) 23 Other Please indicate the portion of your workforce that is: 1 Full-time employed 2 Part-time employed 3 Temporary, seasonal, or on-call workers 4 Independent contractors What is your organization s annual voluntary turnover for employees? Definition: Voluntary turnover consists of voluntary separations by employees (often referred to as quits) and does not include: mandated retirements, layoffs, discharges, termination (permanent or short-term employees or seasonal employees), transfers to other locations, deaths or separations because of disability. Formula: Divide the total number of voluntary separations during the year by the total number of employees at the beginning of the year. 1 OPEN END Regrettable turnover, also known as undesirable turnover, includes voluntary separations by top performers and high-potential employees and separations from key positions for which a successor has not been previously identified. Does your organization track regrettable/undesirable turnover? 1 Yes 2 No

11 D90 D100 D110 D120 D130 D140 What is your organization s annual regrettable/undesirable turnover for employees? Formula: Divide the total number of regrettable/undesirable separations during the year by the total number of employees at the beginning of the year. 1 OPEN END If you include different types of separations in your calculation of regrettable/undesirable turnover than those noted above, please explain: 1 OPEN END Please provide your annual labor cost as a percentage of total revenue. If your organization does not generate revenue, please leave the answer blank. Definition: Labor costs include salaries and wages (for employees and contractors), employee benefits, employment-related insurances and taxes. Formula: Divide the total annual labor cost by the total annual revenue 1 OPEN END The U.S. organizational unit for which you are reporting data in this questionnaire is: 1 The headquarters 6 A consulting firm 2 A subsidiary/group/division 7 A public-sector firm 3 A regional headquarters 8 An educational organization 4 A plant/branch 9 Not applicable 5 An independent consultant Please describe the division, subsidiary, region, etc., for which you are reporting data in this questionnaire (e.g., Southern region, manufacturing division). 1 OPEN END Based on your internal employee-engagement survey, select the answer that best aligns with your overall survey results: 1 Our employees are very disengaged 2 Our employees are moderately disengaged 3 Our employees are neutral on engagement 4 Our employees are moderately engaged 5 Our employees are very engaged 6 We do not conduct any formal assessment of employee engagement.

12 D145 Has your organization won any of the following employer-of-choice awards in the last three years? (Select all that apply) 1 WorldatWork Seal of Distinction 2 AARP Best Employers for Workers Over 50 3 Aon Hewitt Best Employers Award Best Adoption-Friendly Workplaces 5 Best Workplaces in the Bay Area 6 Best Workplaces in Consulting and Professional Services 7 Best Small and Medium Workplaces 8 Best Workplaces in Chicago 9 Best Workplaces for Diversity 10 Best Workplaces in Financial Services and Insurance 11 Best Workplaces for Giving Back 12 Best Workplaces in Health Care 13 Best Workplaces for Latinos 14 Best Workplaces for Millennials 15 Best Workplaces in New York 16 Best Workplaces in Retail 17 Best Workplaces to Retire From 18 Best Workplaces in Texas 19 Best Workplaces in Technology 20 Best Workplaces for Women 21 Best Workplaces for Working Parents 22 Black Enterprise Top 40 Best Companies for Diversity List 23 C. Everett Koop National Health Award 24 Career Bliss 50 Happiest Companies 25 Chief Learning Officer Magazine Learning Elite Award 26 Corporate Responsibility Magazine s 100 Best Corporate Citizens 27 Disability Equality Index: Best Places to Work 28 Diversitybusiness.com: Top Organizations for Diversity 29 Diversity Inc. Top 50 Companies for Diversity 30 Employer of Choice Australia (aka ABA 100) 31 Entrepreneur Magazine Top 100 Brilliant Company 32 Entrepreneur Magazine s Top Company Cultures 33 Ethisphere World s Most Ethical Companies 34 Forbes America s Best Employers 35 Forbes Global 2000 World s Top Companies 36 Forbes Most Promising Companies 37 Fortune 100 Best Companies to Work For (partnered with Great Places to Work) 38 Fortune 100 Best Workplaces for Millennials 39 Fortune World s Most Admired Companies (partnered with Korn Ferry) 40 Gallup Great Workplace Award

13 41 Glassdoor Best Places to Work Employees Choice 42 Healthiestemployers.com Healthiest 100 Workplaces in America 43 Human Rights Campaign Best Places to Work 44 Human Rights Campaign Corporate Equality Index 45 Inc. 500 Fastest Growing Companies 46 Interbrand Best Global Green Brands 47 Minority Engineers magazine s Top 50 Employers 48 Nafe Top Companies for Executive Women 49 National Organization on Disability Employer Seal 50 Newsweek Top Green Companies in the U.S. 51 Stonewall Top 100 Employers (UK) 52 Surrey Child and Family Friendly Workplace Award 53 Top Employers Institute Top Employer Accreditation 54 Top 50 Employers of HBCU Students and Graduates 55 Top Workplaces by Workplace Dynamics (specify): 56 Training magazine s Top 125 Companies 57 Universum s World s Most Attractive Employers 58 U.S. Healthiest Workplace Accreditation 59 U.S. Veterans magazine Top Supplier Diversity Program (specify): 60 Workforce Diversity magazine s Top 50 Employers 61 Working Mother 100 Best Companies 62 Workplace Gender Equality Agency 63 World s Best Multinational Workplaces 64 Other, please specify: D150 Please provide your company name and indicate whether your company should be included in the participant list. (We will not publish individual respondent names; we will publish only company names.) 1 Company Name: 2 Yes, include in participant list 3 No, don t include in participant list