5 alternatives to the annual performance review
TRANSCRIPT
Strategic Talent Management 1
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Five alternatives to the annual review Evelyn Watts, Product Marketing Manager Hawley Kane, Product Manager
Strategic Talent Management 2
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Evelyn Watts Product Marketing Manager
Halogen Software
Hawley Kane Product Manager Halogen Software
Today’s Presenters
Strategic Talent Management 3
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
• The annual appraisal is dead… or is it?
• Five alternatives for making performance management an ongoing activity
• How to implement these alternatives using the Halogen TalentSpace™ suite
Agenda
Strategic Talent Management 4
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Poll
Why are you here today?
• Our appraisal process is time consuming, complicated or unpopular
• Employee engagement is low & employees don’t understand how their work impacts the business
• To make our process more strategic, responsive & aligned with goals
• All of the above
Strategic Talent Management 5
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
“Performance management is often a source of great frustration for employees who do not clearly understand their
goals or what is expected of them at work. For these employees, annual reviews and developmental
conversations feel forced and superficial, and it is impossible for them to think about next year’s goals when they are not
even sure what tomorrow will throw at them.”
State of the American Manager: Analytics and Advice for Leaders, Gallup 2015
Strategic Talent Management 6
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Is the annual appraisal…dead?
Strategic Talent Management 7
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Our changing environment
Strategic Talent Management 8
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Requires a change in Performance Management
0.8
0.85
0.9
0.95
1
1.05
2002 2012 2015
Gain achieved to date
Projected gain
Time
Emp
loye
e P
erf
orm
ance
CLC HR’s Hypothesis — Due to changes to the nature of work, even improved conventional approached to performance will become less effective at driving performance over time.
Target
Source: Driving Breakthrough Performance in the New Work Environment, A report by The Corporate Executive Board Company 2012
Strategic Talent Management 9
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
The definition…the definition…
• Performance Management: is intended to improve the performance of people in an organization
• It is an ongoing process of
− evaluation
− development planning
− goal setting
− coaching and feedback
− conversation
Strategic Talent Management 10
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Performance Management framework
Development
Career Progression
Goals
Feedback
Rewards
Strategic Talent Management 11
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Is ongoing performance worth it?
Companies that invest in ongoing Performance Management that focus on coaching and feedback had the following business results:
• 70% reported increased revenue
• 72% showed a decrease in turnover
• 54% experienced improved customer satisfaction
Source: 2014 Brandon Hall Group Performance Management Study (n=223)
Strategic Talent Management 12
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
5 Alternatives
• Quarterly goal setting
• Development discussions
• Project reviews
• 360 Feedback assessments
• Check ins
1. Quarterly goal setting
Strategic Talent Management 14
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
of companies stated aligning performance with business goals a top priority for 2015.
Less than 50% of employees know what is expected of them at work.
The average employee is spending 50% of their time on non-productive work.
And the money! Employees that don’t fully understand their job costs US and UK companies $37 billion.
74% Source: HCI | The Corporate Strategy Board | IDC | Brandon Hall
Strategic Talent Management 15
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Strategic Talent Management 16
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Revise and update goals regularly
• Organizations that frequently review and revise their goals have better business outcomes than those that do not
• Specifically organizations that revise their goals quarterly or more frequently are…
− nearly 50% more likely to have above-average customer satisfaction and…
− 65% more likely to be effective at controlling costs than those organizations that revise their goals only once a year
Strategic Talent Management 17
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
First align
• Create strategic goals in processes
• Ensure individual goals are linked to strategic goals
− When managers add goals to forms in a process
− When individuals create goals in the My Performance area
Strategic Talent Management 18
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
First align
Strategic Talent Management 19
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Then set!
Strategic Talent Management 20
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Stay engaged
Strategic Talent Management 21
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Stay engaged
Strategic Talent Management 22
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Stay engaged
2. Development Discussions
Strategic Talent Management 24
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Strategic Talent Management 25
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Let’s change the development discussion
Strategic Talent Management 26
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Where do you want to be in 2 years?
Strategic Talent Management 27
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Where do you want to be in 2 years?
Strategic Talent Management 28
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
How are we doing?
Strategic Talent Management 29
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
How are we doing?
Strategic Talent Management 30
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Did we get there?
Strategic Talent Management 31
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
3. 360 Degree Feedback Assessments
Strategic Talent Management 33
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Strategic Talent Management 34
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
More accurate, credible and reliable performance appraisal ratings
Increased employee acceptance of performance feedback
Improved employee performance Higher functioning work teams
Strategic Talent Management 35
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Let's hear from others!
• Have employees choose raters with manager approval
• Feedback should be aggregated, anonymous
• Rate on competencies
• Provide training and follow up
Strategic Talent Management 36
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
4. Project Reviews
Strategic Talent Management 38
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Project Reviews
• Continuous feedback
• Stop limiting appraisals to the employee / manager relationship
• Launch anytime
• Team leaders can manage their own teams
• Think Project Section Summary!
Strategic Talent Management 39
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
What’s in a Project?
Project Process
Projects
Projects
Strategic Talent Management 40
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
What makes a Project Process different?
• Create Process then add multiple projects within
• Each project inherits the steps, forms, notifications, etc. of the Process
• Employees (project leaders/members) are added to one or many projects
• Steps
− Project leaders can add members to a project
− Project leaders can launch anytime
• Project leader can be a manager or a temporary relationship
• Add Project Summary section to appraisals
Strategic Talent Management 41
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Project Process
Strategic Talent Management 42
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Creating a Project Review
Strategic Talent Management 43
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Evaluate
Strategic Talent Management 44
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Evaluate
5. Check Ins
Strategic Talent Management 46
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
The Holy Grail
Development
Career Progression
Goals
Feedback
Rewards
Strategic Talent Management 47
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Start talking
Employee feedback and coaching templates
o Conversations o Goals o Feedback o Development Plans
Strategic Talent Management 48
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
1:1
Strategic Talent Management 49
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
1:1
Strategic Talent Management 50
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Strategic Talent Management 51
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Strategic Talent Management 52
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Poll
How may we follow up with you after today’s webcast?
• I’d like a free trial or personalized demo of Halogen TalentSpace™
• Please send me more information on Halogen TalentSpace™
• No information required, thanks
Strategic Talent Management 53
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Questions?
Evelyn Watts Product Marketing Manager
Halogen Software
Hawley Kane Product Manager Halogen Software
Strategic Talent Management 54
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Learn More
Strategic Talent Management 55
© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.
Thank you!
Hawley Kane
Product Manager Halogen Software
@Hawley
Evelyn Watts
Product Marketing Manager Halogen Software
@evelynwatts