Why does Every Day Need to be a Performance Review for Your Direct Reports?

As managers of the HR function many of us know that it is difficult to have performance management conversations with employees that are struggling in their job.  We want everyone to be successful and will often do everything we can to coach and mentor employees.  These difficult performance conversations are a key responsibility and role Human Resources plays to support management and improve company productivity and performance.  Outlined below are four steps that the HR leader needs to take to support the corporate team and also function as a resource for the organization.

#1 Create Reasonable and Goal Oriented Objectives

Businesses are results driven and when we have a performance management discussion with an employee it is important to refer to the job description and goals and objectives that were achieved at the beginning of the performance process.  The job description should be detailed and the goals should be reasonable, attainable and agreed upon by all parties.  The purpose of documenting at the beginning of the process is that helps keep both you and your employee focused on the right path. The more detailed and specific the job description and the goals and objectives the better the chance of all parties achieving the desired results.

#2 Performance Conversation and Discussion

It is important to remember that this is a conversation between you and your colleague.  It is not a lecture. The performance discussion is designed to gather information and give advice. Listen to your employees, analyze their responses, refer to the job description, agree upon goals and objectives and discuss performance deficiencies.  Always maintain a professional and business-oriented discussion.  If you want to make sure that you are crafting a positive conversation, then as a manager you need to become aware of your communication style vis-à-vis your employees.  It is important to modify your style to accommodate the setting and purpose of the discussion and be an active listener.  You also need to take notes and attempt to come to a joint understanding of those areas where improvement is desired.

#3 Coaching and Training                                    

One of the key elements in a performance discussion is the belief that the employee is receiving accurate information in a supportive environment. Managers need to make the most of whatever opportunities they have to increase their direct reports' trust at all levels and look for ways to support the struggling staff member. One of the best ways to improve performance is to increase the trust between you and your subordinate.  It is critical to coach the employee, be consistent and look for ways for the employee to be successful.  Occasionally, managers will offer additional training and provide training to improve sub-standard performance.  While additional training is very important there is only one tool in a manager’s took kit.  Additional support includes meeting more often to provide immediate feedback with the employee as well as using a problem-solving approach as the method to address performance issues.  As a manager and HR professional the idea that every day is a performance review should be the approach utilized.

#4 Agree Upon the Strategy

Because people have different development needs at different stages, managers are advised to discuss the performance plan and agree to the next steps for the future.  The performance plan is not designed as a way to manage a struggling performer out of the organization but rather to give them the tools to ensure their success.  As a manager, and HR leader it is important to be a good listener, be candid and honest and document the agreed upon strategy.

Finally, remember that you cannot “save” everyone. No matter what you do, there are those staff members that do have the skills or knowledge to be successful.  What you can do is give them the tools and time to be successful.  Ultimately, it is up the employee to rise to the occasion.

What Can Human Resources do to Develop a Meaningful Succession Plan?

Change is constant and with many companies lacking the expertise to deal with an evolving business issues such as global competition, changes in technology and the need to reexamine business models are factors that contribute to a very complex work environment.  To meet this challenge organizations will often determine that the best way to plan for their future is to create succession plans for key positions throughout the organization.  By implementing these three succession plan initiatives companies will ensure that there is no interruption in service, innovation or customer support.

Hiring the Right Talent

With unemployment at record lows companies today face a variety of challenges with hiring the right talent for the job at the top of the list.  Companies today not only need to offer a competitive wage, top-tier benefits but they also need to build a strong employer brand that allows their employees to feel proud of where they work.  HR departments as the gate keepers for the talent pool need move as quickly as possible to ensure that the hiring process does not get side-tracked.  Many companies will lose excellent candidates because of a very slow hiring process.  Key to the hiring of staff in key positions is the process of thinking beyond the current job that is being filled.  Do your candidates have strong critical thinking skills, exceptional communication attributes and high ethical standards?  These are the questions HR professionals need to evaluate when considering the candidates qualifications.  Also, the candidates are not only applying for the current position that they are applying for but also for their next job.

Improve the Company’s Bench Strength at the Management Level

Executives today are uneasy about their organizational leaders’ ability to manage unexpected challenges.  There is a lot at stake as new managers already have a high rate of failure in the first 12 months of being promoted to a management role.  These leaders often have a difficult time assessing the demands of business, processing and sharing information in a timely manner and talent management.  Human Resource departments can play a pivotal role in helping these new leaders succeed in their job by offering personalized training programs targeted to their particular needs.  HR can also ensure success by developing learning programs that are skill based, that can be applied immediately and are tied to future business challenges.  As part of the process HR will also need to evaluate the gaps in leadership skills in order to determine where training is needed, necessary and applicable.  The goal for the future should be to enhance strategic and creative thinking throughout the organization so that management can focus on how to better position their company for success and ensure that there is no interruption in the talent pool.

Build a Succession Plan that is Flexible and Targeted

One of the key functions of an HR leader is to hire right, create depth in the organization and secure the company’s success by building a succession plan that is both flexible and targeted.  Succession plans are a tool to create an immediate candidate pool of qualified internal employees when a key employee departs the organization.  Succession plans should initially be developed around the C-suite staff followed by more detailed plans around key managers, supervisors and individual contributors.  The goal of “purview” or key personnel is to ensure that they receive training, developmental tools and mentoring so that they are ready to assume a bigger role when a position is identified.  The criteria for purview employees are that they need to exceed job requirements, have been with the company a minimum of 24 months and have the skills, knowledge and ability to assume a great role in the future.  These employees may be unaware that they have been targeted for development; however, HR should take an active role in their career.

By hiring the right talent from the beginning, developing employees that show promise and building succession plans that encourage internal career development through a formal program, companies will mitigate potential gaps in leadership.

Is Aligning Your Company Culture with the Employees Important? – Three Tips

The culture of any company is the cement that holds the organization together.  A culture that is effectively integrated into the company, where all employees are held accountable for its adherence, along with a rewards program that supports the agreed upon culture will add value to the company.   A fractured culture erodes confidence in the products and services a company sells and can lead to serious long-term challenges for the HR professional and leadership team.

HR professionals should consider implementing these three recommendations to support the successful implementation of a culture based upon the mission statement of the company, the values of the organization and the strategic vision of the leadership team.

Communicate Your Mission to the Stakeholders

Creating a cohesive organization based upon shared values will allow your employees to be make the transition from just viewing their role as just a job to a career with the organization.  The value of examining your company’s mission statement will ensure that the mission is aligned with reality and current practices.  Communicating the agreed upon mission statement to employees, customers, vendors and shareholders will ensure that all stakeholders subscribe to these principles.   

Hold Managers Accountable for Living the Company Values

An increase in stakeholder loyalty can boost profits and productivity; however, this is predicated upon the managers and the leaders of the organization being held accounting for “living the values” of the company.  Research has shown that ethical managers that communicate these shared values will lead to greater profitability and growth.   According the Gallup Business Journal (June, 2013) work units in the top quartile in employee engagement outperformed bottom-quartile units by 10% on customer ratings, 22% in profitability, and 21% in productivity

Employers today want to understand how they can secure more support from their employees.  On-going management and accountability based upon the vision, mission and vision will make it easier for the HR professional and the leadership team to determine how to best execute the strategy for the future.

Tie Pay and Performance to the Adherence of the Agreed Upon Values

We all know that what gets measured gets managed with success.  Performance reviews are a great tool to tie the successful communication of the mission with the success of the leaders.  If the executive team has a vested interest in the process and are measured on their success of tying their decisions to the published values; this measurement will add accountability to the process.  While tying pay, accountability and performance is not a guarantee of success the outcome with be more probable.

Is the Performance Management Process Broken?

Each year millions of companies across the county go through the process of reviewing employee performance, ranking their employees against their peers then communicating their strengths, weaknesses in face-to-face discussions as a way to motivate staff and presumably to improve productivity.   The question is should this process continue or is it such a failure that this key management tool should be discarded and a new way of evaluating performance be developed?

Using our employee engagement survey tool as the backdrop to this question the data suggests that the process is not broken but the way the process is administered and communicated needs to be fine-tuned to better reflect the current workforce.

What is a Performance Review?

First of all, let us define what a performance review is and why it is such an important tool in managements toolbox.    The performance review is a mechanism to document an employee skill level based upon a clear understanding of the duties and responsibilities of the job and the results expected.  The performance review is a unique way for management to motivate and maximize performance and productivity, as well as outline career goals and expectations.  It also facilitates a ranking mechanism for management and is an excellent way to provide succession planning services.

What is the Manager’s Role in the Process?

The manager’s role in the process is to properly set the stage to ensure the success of the discussion as well as encourage employee motivation and engagement for the future.  The manager must discuss the job, standards and expectation and summarize their subordinate’s strengths and weaknesses by providing specific examples of successes and challenges in their performance.  Highlighting these areas in generalities will not support the specific areas for improvement that the employee faces nor will it support the overall rating.  In our survey data our respondents indicate that they want a timely review, that is layered with specifics and offers them a path to improve.  The respondents also indicate that they want to seek agreement with their manager on the performance improvements desired and work in an environment where the company will support their professional development.  Where managers fail is that they are not prepared for the discussion, do not provide specifics and are unwilling to hold their direct reports accountable.  Successful managers also need to let their employees know that they have a responsibility in the performance process as well.

What is the Employee’s Role in the Process?

The employees need to come prepared with a self-review so that they can provide honest feedback about their performance.  They should also be prepared to express their short term and long term goals and what they expect from their manager over the next performance review cycle.  If there are any ambiguities with respect to the job, standards or expectations they should be addressed during the performance review discussion.  Finally, if improvement is necessary both the manager and the employee should come to a mutual agreement on what is expected in the future.

Where Does the Process Fail?

The process will often fall short when several key principles are not adhered to by the manager and they include the manger not being honest about their employee’s strengths and weaknesses.  It is often easier to just gloss over the employee’s substandard performance than it is to address the challenges and work with the employee to make them successful.  The survey data suggests that it is easier for managers not to hold people accountable.  Also, managers will often not tie pay and performance but rather take the approach that all employees should receive the essentially the same merit increase regardless of performance.  Once again this may be the easiest path; however, it does not recognize contribution and excellence on the job.  The merit increase program administered through an effective compensation strategy can motivate those employees that are high potentials and successful.

Key to a successful performance review process are managers being honest and prepared and recognizing the differences in the performance of their subordinates.  Employees need to have an attitude that is open to improvement and learning in order to further develop their skill-set.