Four Elements of Effective Performance Management
3 likes781 views
The document discusses four elements of effective performance management: performance reviews, manager one-on-ones, employee goals, and real-time feedback. It provides tips for implementing each element, such as running review cycles twice per year, focusing one-on-ones on current performance and career aspirations, setting goals employees can impact, and using feedback to improve engagement. The key takeaway is that performance management should benefit employees by clarifying expectations and opportunities for growth.
Four Elements of Effective Performance Management
- 1. bamboohr.com lattice.com Four Elements of Effective Performance Management
- 2. bamboohr.com lattice.com Four Elements of Effective Performance Management Cassie Whitlock Director of HR BambooHR Jack Altman CEO and Co-Founder Lattice
- 3. bamboohr.com lattice.com Four Elements of Effective Performance Management Start with your goals 1. Are you trying to evaluate employees so you can make compensation and promotion decisions? 2. Are you trying to increase employee engagement and happiness? 3. Are you trying to make managers give feedback more often? 4. Are you looking to give employees more recognition? 5. Are you trying to make goal-setting a core practice at your company?
- 4. bamboohr.com lattice.com Four Elements of Effective Performance Management Performance Management Includes Four Key Elements
- 5. bamboohr.com lattice.com Four Elements of Effective Performance Management Design the system that’s right for your business
- 6. bamboohr.com lattice.com Four Elements of Effective Performance Management Performance Reviews Implementation Tips
- 7. bamboohr.com lattice.com Four Elements of Effective Performance Management Review Structure • Run performance review cycles (at least) twice per year. • Grouped review cycles vs. start dates • Do 360 degree reviews which include feedback from everyone’s manager, self, direct reports, and peers. For peers, ask employees to suggest 3–5 people they have worked with and have their managers approve those peer selections. • Ask 3–5 straightforward questions. Find a balance between guiding the conversation and allowing people to share whatever is on their minds, and keep the total number of questions low to reduce review fatigue. • Make sure managers sit down with their direct reports and discuss the feedback together after it’s all done. This conversation is the most important part of performance reviews.
- 8. bamboohr.com lattice.com Four Elements of Effective Performance Management Compensation vs. Development • Tie one of your performance review cycles per year to compensation. Everyone should know this is coming so they don’t have to ask you about raises throughout the year (if you want to make off-cycle compensation changes that’s of course fine). This review cycle should have some form of ratings or designations so you can have a quantitative basis to compare performance. • Your other review cycles should be exclusively for the benefit of employees. It’s an opportunity for employees to receive and give feedback with nothing on the line other than to be heard, be recognized, and learn what they can improve upon.
- 9. bamboohr.com lattice.com Four Elements of Effective Performance Management One-on-Ones Implementation Tips
- 10. bamboohr.com lattice.com Four Elements of Effective Performance Management Mentoring Relationships • 63% of Millennials say their leadership skills are not being fully developed • Millennials who intend to stay with their organization for more than five years are twice as likely to have a mentor (68%) than not (32%) • “Your boss doesn’t appear to trust or empower you”: 72% of employees rated “not at all acceptable” or a “deal breaker”
- 11. bamboohr.com lattice.com Four Elements of Effective Performance Management Three Keys to Building Trust 1. RepeatInteractions 2. Win-WinSituations 3. EffectiveCommunication&Execution
- 12. bamboohr.com lattice.com Four Elements of Effective Performance Management Is It About Performance? • Four out of five employees prefer feedback in the moment, rather than an aggregate report of several months of work • 60% of employees value qualitative feedback over numerical feedback • Performance conversations show how the organization helps employees and how employees matter to the organization
- 13. bamboohr.com lattice.com Four Elements of Effective Performance Management
- 14. bamboohr.com lattice.com Four Elements of Effective Performance Management Epiphany Moments • 6% increase on the anniversary of a hire date • 9% increase on the anniversary of a promotion • 12% increase after birthdays, especially milestone birthdays • 16% increase after attending a high school reunion Job-hunting activity jumps when employees make comparisons.
- 15. bamboohr.com lattice.com Four Elements of Effective Performance Management One-on-One Topics • Current Performance vs. Organizational Expectations: Provide regular conversations during and after training, make expectations clear to increase accountability • Career Aspirations: Uncover employee expectations for new duties or the desire to advance in the organization
- 16. bamboohr.com lattice.com Four Elements of Effective Performance Management One-on-One Topics • Wins: Emphasize how your employees’ efforts make an impact on their team and working toward your overall mission • Prioritization: Managers help employees work through the good uses of their time to find the best use of their time • Roadblocks: Employees let managers know what resources they need to accomplish their priorities, including coordination with other teams
- 17. bamboohr.com lattice.com Four Elements of Effective Performance Management Goals Implementation Tips
- 18. bamboohr.com lattice.com Four Elements of Effective Performance Management Set goals to drive performance Use OKRs or SMART goals to help employees reach goals by connecting them to measurable results. Why set goals? Focus Alignment Purpose Philosophy • Ambitious: Objectives are set just beyond the threshold of what seems possible • Measurable: Key Results are tied to tangible milestones • Transparent: OKRs are viewable across the organization from the CEO down to the Intern • Performance: OKRs are not synonymous with employee performance evaluations
- 19. bamboohr.com lattice.com Four Elements of Effective Performance Management Goal setting is for the employee’s benefit • Ask employees to set 2–4 goals per quarter. These defines what an employee should focus on and how they’re able to make an impact on the company • Managers and reports discuss goals at the end of each quarter. Talk about what caused goals to be met or not, whether the goals turned out to be worthwhile to pursue, and how you might be able to set better goals next cycle. • Don’t tie goals directly to compensation. You can and should discuss goals during performance reviews as part of an overall assessment of an employee’s performance, but there should not a one to one correlation here. (Revenue generating roles are a possible exception.)
- 20. bamboohr.com lattice.com Four Elements of Effective Performance Management Real-Time Feedback Implementation Tips
- 21. bamboohr.com lattice.com Four Elements of Effective Performance Management
- 22. bamboohr.com lattice.com Four Elements of Effective Performance Management 54 24 12 40 63 58 50 33 6 13 30 47 65 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 5 4 3 2 1 I can approach my manager with any type of question Actively Disengaged Not Engaged Engaged Strongly Agree Strongly Disagree
- 23. bamboohr.com lattice.com Four Elements of Effective Performance Management Bad Boss Fears Our managers may fear becoming bad bosses through feedback. Here are the actual top bad boss behaviors: • Taking credit for your work: 75 percent (Managers: 52%) • Not appearing to trust or empower employees: 72 percent (Managers: 53%) • Not appearing to care if employees are overworked: 68 percent (Managers: 48%)
- 24. bamboohr.com lattice.com Four Elements of Effective Performance Management Emotional Intelligence • Self-Awareness: Making decisions independently, not blaming other people for challenges • Self-Regulation: Thinking of the future and the importance of continuing relationships and keeping trust • Motivation: A passion for work that goes beyond money and status, in other words, recognizing the full value of employer and employee • Appropriate Empathy: the other half of developing win-win scenarios • Social Skills: managing relationships with low miscommunication
- 25. bamboohr.com lattice.com Four Elements of Effective Performance Management
- 26. bamboohr.com lattice.com Four Elements of Effective Performance Management Key Takeaways 1. Performance Management includes four key elements: a. Performance Reviews b. Manager 1:1s c. Employees’ Goals d. Real-Time Feedback 2. Design the system that’s right for your business 3. Performance management is for the employees’ benefit
- 27. bamboohr.com lattice.com Four Elements of Effective Performance Management Follow BambooHR and Lattice on social media: bamboohr.com/blog | lattice.com/blog Thank you!
- 28. bamboohr.com lattice.com Four Elements of Effective Performance Management BambooHR Join BambooHR for Elevate Virtual, the world’s largest virtual conference for HR professionals. Register here for free: http://bit.ly/LatticeElevate Performance Management for Growing Companies Lattice Get started with a free trial at lattice.com Questions?