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.

How Can HR Develop a Meaningful Succession Plan?

Change is a constant and is occurring quickly with many companies lacking the expertise to deal with an evolving business environment.  Issues such as global competition, changes in technology and the need to modify 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 a succession plan through-out 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.  Organizations today not only need to offer a competitive wage, top-tier benefits but they also need to build a strong employer brand that allows for their employees to feel proud of where they work.  HR departments as the gate keeps 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 problem solving skills, exceptional communication attributes and have high ethical standards.  Evaluate the candidate not only 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 handle unexpected challenges.  There's 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.  According to the Future of HR survey by Gartner in 2019 serious gaps at the leadership is a barrier to their success.

As can be seen above leadership gaps are occurring in succession plan development. The goal for the future should be to enhance the strategic and creative thinking through-out 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 the training, developmental tools and mentoring so that they are ready to assume a bigger role with a position is identified.  The criteria for purview employees are that they need to be exceeding 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 can will mitigate potential gaps in leadership.

Is the Annual Performance Review Still Relevant?

With all of the changes over the past several years and the shift of the Human Resource profession from a tactical to a strategic focus, one of the questions we hear from our client’s is the annual performance review relevant in today’s business environment?  Businesses today are driven by metrics and the HR programs that have been in place for many years need to be evaluated to determine if they are effective.

Given the survey data we believe that the annual performance review is a valuable tool to motivate and ensure high levels of performance.  To support this position we examined our survey data in order to determine what our clients and respondents are saying about this key management responsibility.

 

What is a Performance Review and How Do We Define this Process?

 

The performance review is a mechanism to document an employee’s skill level based upon a clear understanding of the duties and responsibilities of the job and the results expected.  Performance reviews have been viewed as an effective tool for management to help motivate and maximize performance and productivity.  It is also a way to outline career goals and identify expectations for the future.  The performance review if consistently applied across the organization can facilitate a ranking mechanism for management which helps identify high-potential employees as well as provide succession planning services for key positions in the company.

 

Do Employees find Value in the Process?

 

Based upon our employee survey data areas of employee satisfaction with management are varied; however, employees find the management responsibility of conducting the annual performance review very important for ensuring high levels of performance along with the maintenance of superior employee-management relations.  Holding all employees accountable creates a team environment where honest and constructive feedback is valued.  Employees; however, do not view the annual performance review as an isolated event but rather a continuous process.

 

Do Managers find Value in the Process?

 

Our survey data suggests that the need for managers to motivate employees through a progressive performance review process facilitates a stronger organization which allows the employee to grow professionally.  The opportunity to present a strategy for continuous improvement and tie pay to performance along with recognizing excellence on the job creates an environment that is more innovative and creative.  If done properly, managers believe that the annual performance review can retain high performers and lower turnover.  Furthermore, if performance, pay and incentive plans are linked the performance review process will have more significance and importance.

 

What is the Problem with the Annual Performance Review?

 

With managers and employees finding value in the process why are there so many issues with this key Human Resources program?  Managers will often wait to deliver bad news to the employee during the annual performance review rather than addressing any challenges immediately.  This approach creates the environment where the employee can’t alter their behavior or make changes until it brought to their attention and by then it is too late.  Employees will often not want to appear lacking in their performance and when challenges surface they are reluctant to bring any impediments to their success out of fear on not being viewed as knowledgeable.  Both parties want a successful process only the communication process is lacking and not cascading through the organization.

 

What is the Role of HR to make this Process Work?

 

HR’s role is to create an environment where all employees are treated fairly and their manager is viewed as a strong coach and mentor.   Human Resources is also a facilitator for change and thorough a performance management training program this very important management task can remain relevant and a key metric for managing overall talent.  HR professionals will need to devote more time and attention in the future to providing leaders of the organization with the training on how to deliver an honest assessment of their direct reports performance in a timely manner. 

 

The Structure of the HR Organization and Will there be HR Generalists in the Future?

Recently there has been some discussion in social media as to the future of the HR Generalist role and is this type of position needed today?

Organizations are constantly reviewing whether to centralize their HR professionals or decentralize the Human Resources function.  There are typically three approaches regarding the structure of HR.

Decentralized:  If you have talented individuals that are resourceful, knowledgeable and are skilled in the process of explaining the HR programs and policies then the closer they are to support the business the better it is for the company.  Decentralization is the optimum approach with respect to building a partnership between HR and the business.  It is also the most costly from a budget perspective.

Blended:  If the HR staff lack the depth of experience then the goal is to train these individuals and hire “specialists” that can share their knowledge with the newer employees.  While these employees remain close to the business their lack of skill can often be an impediment to their success.  This structure also takes time to build and commitment from the leadership team is critical to maintaining this type of organizational platform

Centralized:  A centralized structure is a skilled and talented staff that are pro-active, reach out to the business units and provide sound advice from a call-center or centralized corporate office.  This approach is being used by an increasing number of companies that have 500 employees or more.  With employees becoming familiar with the self-service approach to obtain information about pay, benefits, promotions and career paths the need to have an intermediary is becoming less necessary

Today, organizations are looking for cost effective talent to support and partner with the business.  With budgets being scrutinized and HR metrics becoming an even more important part of the performance process the future of the HR Generalist particularly in larger organizations is very uncertain.

The future of the HR Generalist in larger companies (employers with 500 employees or more) will ultimately go away and be replaced with experts in a call center or corporate office.  The business units will only have an HR Generalist if they are willing to pay for this personalized support.  In our opinion, the business leader will determine that the HR Generalist is redundant and unnecessary.  Furthermore, the laws are changing rapidly at the state and federal level and with many companies having a global reach the need for “specialists” is even more important in today’s work environment.  The HR Generalist role is often one of sharing information that is provided by the corporate HR function anyway.  The timely sharing of information is critical to meeting the needs of the business and any follow-up action is often delayed as the skills of the HR Generalist are at times not as strong as the specialist.  This requires that the HR Generalist reach out repeatedly to the skilled expert in the corporate office to obtain clarification.  This takes time and costs the organization additional expense.

The future of the HR Generalist in smaller companies (employers with 499 employees or less) is a very different story.  These skilled professionals will continue to be relied upon, typically report to the CEO or COO and have significant influence on the organization.  They will also have between 3 and 5 subordinates which provide specialized services to the company.  Further career opportunities in this area will continue to grow and expand.

To learn more about what is best for your company Human Resource departments are often conducting employee surveys to evaluate department performance, establish year-over-year metrics, review the success or failure of the established programs and policies and finally how to best meet the needs of the organization and staff.  Consider conducting an employee survey to discover what your employees are thinking.

 

 

 

Do I Need a Succession Plan?

Today companies are at a critical juncture with respect to ensuring that the core values of the organization are maintained.  As the boomers transition to retirement succession planning and the management of the process between the individual’s aspirations and the company’s future needs is a very important HR function.

Succession plans that are well developed and communicated to key executives will increase retention in the c-suite.  Because high-potentials recognize that time; attention and skill development is being invested in them these potential leaders are less likely to seek opportunities outside of the organization.

Succession plans and the development of leadership talent is an investment that requires time.  A working succession plan may result in having more than one skilled executive available for a key job.  HR’s role is to provide choices, options and a plan that is performance based.