Performance Management That Puts Employee First
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This document discusses transitioning from a "pay for performance" model to one focused on employee development. It recommends setting employee goals each quarter and discussing progress, not directly tying compensation to goals. Managers should have weekly one-on-ones with direct reports to provide real-time feedback and development. Performance reviews should include both a development and compensation review, with the latter including quantitative questions. The overall message is that companies should build a year-round process focused on employee development through goals, reviews, feedback and one-on-ones.
![Managers and reports need to have a weekly one-on-one meeting.
Leverage the manager-report relationship
“[One-on-Ones] are the the employee’s meeting
rather than the manager’s meeting. This is the
free-form meeting for all the pressing issues,
brilliant ideas and chronic frustrations that do
not fit neatly into status reports, email and other
less personal and intimate mechanisms.”
Pro tip: Get outside during your 1:1s
Ben Horowitz
Co-founder & Partner at a16z
Former CEO of Opsware](https://image.slidesharecdn.com/latticebamboohrelevate-performancemanagementthatputsemployeesfirst-171102171312/85/Performance-Management-That-Puts-Employee-First-15-320.jpg)
Performance Management That Puts Employee First
- 1. Performance Management That Puts Employees First
- 2. Hi! I’m Jack Altman Founder and CEO of Lattice, a performance management platform for growing companies. We have 300+ customers around the world including Birchbox, Cruise, Glossier, GitLab & New York Public Radio Jack Altman CEO & Co-Founder
- 3. 1. Why you need to transition from pay for performance to employee development 2. How to move towards employee-first performance management Agenda
- 8. “The reality is, even when companies get rid of performance evaluations, ratings still exist. Employees just can’t see them. Ratings are done subjectively, behind the scenes, and without input from the people being evaluated.” 87% of Facebook employees wanted to keep performance ratings.
- 9. How can you develop a performance management solution that puts employees first?
- 10. Growth Give your employees opportunities to learn new skills and provide pathways for career progress Care Show employees that you value their efforts Impact Provide the opportunity to make an impact both day-to-day and on the company’s mission. Create a culture focused on employee development
- 11. Shift towards employee-centric performance management Instead of.. Evaluating employees Doing feedback once a year when it’s convenient for the company Implementing a tedious feedback process Do.. Develop employee so they can grow their careers Empower employees to share real-time feedback, so employees can get value before it’s too late Give managers a light-weight process for providing feedback
- 12. Build a process that makes employee development a year round activity Old Way: Pay for Performance New Way: Employee Development
- 13. Employee-Centric Performance Management Includes Four Key Elements
- 14. Ask employees to set 2–4 goals per quarter These define 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 be a one to one correlation here. (Revenue generating roles are a possible exception.) Set expectations with goal setting
- 15. Managers and reports need to have a weekly one-on-one meeting. Leverage the manager-report relationship “[One-on-Ones] are the the employee’s meeting rather than the manager’s meeting. This is the free-form meeting for all the pressing issues, brilliant ideas and chronic frustrations that do not fit neatly into status reports, email and other less personal and intimate mechanisms.” Pro tip: Get outside during your 1:1s Ben Horowitz Co-founder & Partner at a16z Former CEO of Opsware
- 16. Celebrate wins publicly Allow employees to recognize each other for their daily accomplishments. Note constructive criticism Provide a mechanism for employees to remember constructive criticism for in-person conversations. Empower peers to share feedback in real-time
- 17. Take moments to reflect on development progress Run at least two review cycles per year Development Review This review exists for the benefit of employees. It’s an opportunity for them to receive and give feedback with nothing on the line other than to be heard, be recognized, and learn what they can improve upon. Development reviews are an opportunity for employees to take a step back and reflect. Compensation Review One review cycle should be tied to compensation and promotions. Make sure to communicate the timing of the review to the company so employees are not constantly asking about raises throughout the year. This review cycle should have some form of quantitative questions, so you can compare performance.
- 18. It’s time to move towards employee-centric performance management Takeaways Build a performance management process that makes employee development a year round process: a. Employee Goals b. Development Reviews c. Manager 1:1s d. Real-Time Feedback
- 19. Thank you! Software Sign up for a free trial of Lattice lattice.com/trial Resources Check out our videos, articles, & books on performance management. lattice.com/library Community Become a member of our people operations community lattice.com/resources-for-humans Here’s how you can learn more about Lattice and modern performance management: