Performance Appraisals: A Broken Prac3ce. Anu Mannathikuzhiyil HR Generalist

Transcription

1 Performance Appraisals: A Broken Prac3ce Anu Mannathikuzhiyil HR Generalist

2 What will be covered Problems with the tradi3onal performance appraisal (PA) system Employee problems, manager problems and problems for the organiza3on as a whole Effec3ve tools that measure performance with valid outcomes

3 Defini3on The prac3ce of performance appraisal is a mandated process in which, for a specified period of 3me, all of a group of employees work performance, behaviors or traits are individually rated, judged or described [ ] and the results are kept by the organiza3on Source: Coens & Jenkins, Abolishing Performance Appraisal: Why They Backfire and What to do Instead (2009)

4 A simple process? Head of HR Department: Determine salary increase guidelines, forward guidelines to managers HR Department: Inform all managers of impending performance review dates, distribute a list of their employees to each manager and request iden3fica3on of co- workers who regularly interface with each of these employees Manager: Return completed co- worker list to HR HR Department: Select co- workers to complete peer review, forward peer review form to selected reviewers, forward managerial appraisal forms to every company employee Employee: Return managerial appraisal forms and peer review forms as appropriate to HR Manager: Request comple3on of self- appraisal from each employee Employee: Complete performance self- appraisal and send to manager HR Department: Assemble and distribute performance review packets for each manager Manager: Review records and files pertaining to the review period and go through peer review and self- appraisal forms

5 There s more?! A Manager: Write performance review Salary adjustment is appropriate? Yes Manager: Complete employee profile No Performance review approved? Yes Manager s manager: Review performance review documents Manager: Forward performance review documents to manager for approval No Manager: B write performance review Manager s manager: Discuss concerns with employee s manager and resolve difference Review needs to be rewriaen? No C Manager s manager: Sign and return performance review documents Yes A

6 Are you serious? Manager: Schedule and conduct performance review with employee Employee wishes to study the review? Yes Manager: Provide copy to employee No Manager: Ask employee to sign review Manager: Aaach employee comments to review, if provided Employee: Study review and prepare comments. Meet with manager to discuss Employee refuses to sign? Yes Manager and HR Rep: Meet with employee to discuss issues and concerns Employee: Sign performance review No

7 Finally!!! Manager: Distribute copies of performance review and send original copies to the HR Department HR Department: Record results of performance review and enter performance ra3ng HR Department: File review documents in employee personnel file HR Department: Forward Employee Profile to payroll Yes Salary adjustments required? No End

8 Did I lose you?

9 Issues: Just to name a few Does not assess actual performance Infrequent feedback Discounted from rewards Lack of accountability

10 Issues: Just to name a few Liale legal support The factors are all equal Inconsistent ra3ngs on same forms Not coordinated with business cycle

11 Variables Affec3ng Performance Personal life Sickness Stress Inadequate amounts of sleep

12 Rater Bias Halo/Horn effect Leniency error Self- serving bias Recency error

13 Unintended Consequences Long- las3ng psychological effects Feelings of unfairness and ineffec3veness Dissa3sfac3on Fear/Dejec3on Anger

14 Organiza3onal Problems Average cost- over $2,500 per employee Average 3me per year (employee): 3 hours Average 3me per year (manager): 400 hours Rates of voluntary turnover increase aler review periods

15 By The Numbers 66% of employees say the performance review process interferes with their produc3vity 65% say it is not relevant to their jobs 90% of HR professionals do not believe their companies performance reviews provide accurate informa3on 95% of managers are not sa3sfied with their organiza3ons performance management processes Source: Corporate Execu<ve Board

16 What you can do Move towards a Performance Management Model Organiza3ons need to focus on improving the overall system of the organiza3on, instead of individual performance Companies that have eradicated tradi3onal PAs from their annual processes are rated highly in employee surveys

17 Alterna3ves Journaling Decide between a monthly or quarterly 3me range and set reminders for both the manger and employees Have employees send 3-5 accomplishments from the previous month/quarter Have employees send 3-5 goals for the current month/quarter Manager should provide feedback for accomplishments and goals Does not need to be for each point and does not need to go into great detail

18 Coaching Engage in high- quality one- on- one conversa3ons with employees Schedule a session every three to four weeks Fosters professional development

19 Benefits Call for a constant flow of feedback that gives employees direc3on, provides paths to career developments Keep both the manager and the employee aware of each other s professional wants and needs

20 Performance Previews Discussions about how to improve working rela3onships in the future to meet specific goals I statements from manager and employee

21 Feedback Ques3ons Is this role living up to your expecta3ons? When people ask what you do for a living, are you proud? Do you feel comfortable voicing your ideas?

22 Adobe s Check- In Used to rank employees on a scale from 1 to 4 Soul- crushing exercise Caused spikes in voluntary turnover replaced rankings with frequent informal conversa3ons, no annual ra3ngs Es3mated savings: 80,000 hours a year, 40 full- 3me posi3ons

23 Deloiae s Performance Management System Future Focused Statements 1. Given what I know of this person s performance, and if it were my money, I would award this person the highest possible compensa3on increase and bonus 2. Given what I know of this person s performance, I would always want him or her on my team 3. This person is at risk for low performance 4. This person is ready for promo3on today

24 Benefits Less of a 3me commitment Less money spent regarding produc3vity Surveyed employees highly rate these new methods, and call them more effec3ve Builds rela3onships between managers and employees Improves produc3vity Helps support a high- performance culture

25 Summary Performance appraisals cause more problems than they solve Adop3ng a performance management style will help alleviate all, if not most, of the problems with PAs If you want to s3ck to a PA model, there are ways to tweak the process to alleviate issues

26 QUESTIONS? G&A Partners (800) *This webinar has been recorded and will be posted on the G&A website by Friday. HRCI Cer<fica<on Credits: "This webinar has been pre- cer3fied for 1 hour of general recer3fica3on credit toward PHR, SPHR and GPHR recer3fica3on through the HR Cer3fica3on Ins3tute. We will send out a confirma<on e- mail to all those that are confirmed as agended with the program ID code to note on your HRCI recer<fica<on applica<on form. The use of this seal is not an endorsement by the HR Cer3fica3on Ins3tute of the quality of the program. It means that this program has met the HR Cer3fica3on Ins3tute's criteria to be pre- approved for recer3fica3on credit."