Feeling the Love

February is flying past us at a rapid pace, and for most managers and HR professionals, the shortest month is also that which is associated with the most dreaded activity of the year; performance reviews. Recent data by SuccessFactors polling HR professionals tells us that nearly eight in 10 companies conduct performance appraisals; of those, 72% reported being only “somewhat satisfied”, “not very satisfied” or “extremely dissatisfied” with the process.

At best, what is supposed to be a forthright, transparent conversation between managers and subordinates for the benefit of their performance becomes a meaningless, inflexible annual ritual in which we must put complicated human behaviors and actions into simplified numeric or generic categories to fulfill a directive. At worst, managers abuse the systems by inflating ratings of favored employees while deflating the accomplishments of others, otherwise known as the halo effect. And while study after study has shown this process to be ineffective and unwanted, there is little left to take its place, as companies need measurement data to support compensation decisions, as well as termination decisions. 

So how do we get back on track without throwing the baby out with the bathwater? How do we start using this process as a performance management tool instead of a compensation tool? How do we use these conversations as opportunities for improvement, so that employees “feel the love” for their efforts, rather than making them a check on managers’ lists?

The answer may not come easy – there’s not an app for that. Because attitudes towards this process have developed over decades, it only makes sense that a major shift in not only how the process works, but how people think about it, will take some significant time. And while there are many best practices out there to help guide us, I will only touch on a few, and I encourage you to contact me with your ideas if you have fought this battle and won!

If you are looking for a complete overhaul, first consider going electronic if you have not already done so – paper forms inhibit doing things remotely for both employees and managers, and it’s also easier for both to go into the system and add notes throughout the year as they come to mind, making the year-end results much more accurate. Another idea is to break down one-and-done mindset – ensuring that employees and managers have consistent, timely feedback. My favorite initiation of this includes having the managers rate each employee on a quarterly basis (keeping to the bell curve may or may not be enforced at this stage) and include comments as to reasoning; for year-end ratings, you then simply calibrate these ratings altogether giving you the annual score. While no paperwork would is needed for these quarterly meetings, managers would schedule them with their subordinates to discuss their current performance – and as ratings would not be communicated at this meetings, the honest feedback is imperative here. This process alleviates the annual year-end crunch for managers and HR, gives employees timely feedback, and reduces the potential for issues like the halo effect and insufficient substantiation.

Other alternatives for those not looking for a major change include creating set expectations for what constitutes a particular rating, calibration group sessions, and peer reviews. Creating set expectations for each rating would include a written description of what behaviors and actions constitute the ideal embodiment of a particular rating. Many find this helpful when managers throughout the company are not on the same page rating-wise. Calibration group sessions are more fitting for executive level groups, and are usually done off-site with a third party. Managers at a certain level gather in a room, designate certain areas of the room as rating buckets, and every employee’s name goes on a post-it note. Each manager then puts that person’s post-it in the area in which they believe they rank; from there, the discussion takes place in order to not only ensure the bell curve, but also alleviate any disproportionate rankings by any certain manager (i.e. a manager who considers themselves a “hard rater” never gives out high ratings would be forced by the group to do so if warranted). This tool is also useful so that talent at that level is exposed to many different managers, and bench strength can be discussed with the visual tool of the post-its. Lastly, peer reviews, notably toted by Google, are in addition to a peer review and manager review; typically the employee must choose a specified number of peers to review them (usually those whom the employee works most closely).

So, while the dissent is getting louder, I wouldn’t plan on a total eradication of the performance review process. It is still a much-needed practice, and an inherently good one – it’s just about finding out what works for your employees and company.

Until next time – Be Inspirational!

Resolving to Change

A new year – a fresh start, a new leaf, that new resolution -  a time when everyone takes a long look back at the time that’s past, and a hopeful look into the future of those things that are yet to come. As HR professionals, it can be an exceptionally busy time, as we’re wrapping up any 2011 initiatives, gathering incoming data to finalize presentations, metrics, etc. for the previous year, as well as kick-starting any new year communications and/or programs, end-of-year reviews, and merit increases. It is also the start of the “unofficial” recruiting season – a fact that many managers will see not only due to increased interviews and new faces, but increased turnover and workload for existing employees.

In the midst of all this, it’s easy to lose sight of January’s biggest HR opportunity – change.

The atmosphere is prime for people to be ready for change, and smart companies will seize that opportunity to re-brand, re-communicate, re-engage, as well as re-position themselves externally in the market for new talent. Utilizing last year’s data, now is the time to make your case for the next big step needed for your workforce.

In order for this to not feel like “the flavor of the month”, you’ll need to do your homework, and depending upon what you’re tackling, that could mean a little or a lot. What really matters most is to separate fact from fiction, and to remain completely unbiased, something that is remarkably hard to find, even in HR. Too often we hear that change needs to come from the top – down, however, when making a massive change, the most successful companies are able to create a grass-roots-like movement, with employees embracing the change faster than the C-Suite. Taking off those rose-colored glasses, we will see that sometimes the best solutions for our everyday use arise somewhere in between – creating momentum in the employee base, while still gaining top management support.

By utilizing the actual data, you will also be able to take on what is really plaguing your workforce, not just what you hear the most complaints on, or what your executives think needs work. You should also try to have data from multiple sources, not just one area; for instance, exit surveys may show employees who are leaving due to certain employment factors, but an engagement surveys may show why those employees who are not leaving are still in the game, and what their concerns are. If you have resounding concerns from both in certain categories, full steam ahead – if not, further study may be needed to find out where to go from here.

Re-branding and re-positioning externally takes looking at your employee value proposition – i.e. what do you offer to potential candidates that your competitors don’t – and how to set yourself in the market of prospective job seekers. As Q1 hiring picks up, you’ll need to be thinking about this, and crafting your recruitment strategy for 2012 to align with it. Again, you will find that data from the previous year(s) will be instrumental in this process, as talent gaps, bench weaknesses, and recruitment support issues will not go away just because the calendar flipped – analyze what is taking place, how it is affecting your business, and what resources are available to you with the appropriate ROI to create a solvent solution.

Remember, there is always something to improve upon, even if it’s minor, to increase productivity, accuracy, customer service, communications, etc., and if you take the appropriate steps to realize these opportunities and seize them when your audience is seasoned for it, you can ensure success (of course, you need to also have an airtight communication plan, business reasoning, etc., but more on that in later months). By taking these minor steps as they come, you can find yourself moving from talking about best practices to accomplishing them.

As always, Be Inspirational!

Give the Gift that Keeps on Giving

‘Tis the season! Various holiday celebrations and traditions will be honored, shopping frenzies will be had, family time will be shared, and unpredictable weather is to be expected. And with these diverse activities come many facets of HR for us to focus on; stress management, vacation policies, flexible work arrangements, emergency weather procedures, not to mention to much-anticipated yearly reviews. And while all of these things are important in their own right, it is invariably more important that we, as partners with our business, remember that this is also the season of the “last big push”.

For operational leaders everywhere, it’s getting last minute product out the door to the customer on time with exceptional quality; for sales, it’s getting every last order in before the books close on 2011, and securing orders for first quarter 2012; for financial leaders, it’s making sure every bill, every variance, every piece of inventory, etc. is accounted for and reported. And for human resources leaders, it should be about utilizing the tools and knowledge in your arsenal to advance these activities, and help your customer groups operate flawlessly.

Often times you hear about the success that HR leaders gain when they step outside of traditional roles and deep-dive into the business, immersing themselves in their client-teams and gaining operational knowledge and skills. And while I highly recommend to anyone who does get an opportunity to do so, more often than not the probability of that being offered to you is unlikely, so beefing up on your operational know-how is something you will need to do on your own, not only for your career, but for the benefit of your clients. One of the biggest complaints about HR is that we are too removed from what is actually happening, and what matters on a day-to-day basis for the business. In order to not only challenge that perception, but change it, and gain the respect of your business leaders, you will need to be able to prove your operational awareness and apply it. December is one of the best times to demonstrate this; instead of pushing unreasonable demands on your leaders and becoming a faceless paradigm known as “HR”, get out into the business, use your specialty skill set as well as operational acumen to help solve the issues at hand.

But how can you gain the in-depth knowledge you need in order to come to the table as a true operational leader? Learn about your business. As mentioned, this is not the month to start having sit-down meetings with leaders, shadowing floor supervisors, inviting yourself to strategy meetings, etc., but you can spend some time to expand on your knowledge of the industry, the company, and your division / client teams specifically, and set goals for yourself the coming year to learn more.

What are their challenges? What have they typically done well in the past? Where are they struggling from a delivery perspective, and how is your competitor beating them? What are the deliverables for the coming year, and what challenges will there be in meeting them? Are we embracing new technological advancements, and if so, how is it allowing us to deliver better/faster? Are we incorporating LEAN systems in our workforce, and training everyone on the mindset?

After you gain a solid foundation, start incorporating this knowledge into the way you do your job – and become more involved in matters typically outside your scope. The more you learn, and become ingrained in your clients and business’ needs, the more you will not just become a human resources leader, but a business leader. You will be able to answer operational questions from a new perspective, as you not only have the operational foundation, but the HR knowledge and people skills that will lead you to think more creatively, and with an eye for what this will do for the business as well as the employee. There are several issues where various employment law or union relations skills would be unquestionably effective, but the knowledge of the operational need is also apparent as well – a successful marriage of both is needed. Talent management is another area where both can be called upon, as operational needs may require different mixes of talent depending up on your cyclical staffing needs; do you have a need for temporary staffing, are your teams staffed appropriately and not too bottom / top heavy, etc. Rolling out any kind of new policy, procedure, incentive, or program can also call for operational knowledge, and extensive understanding of your customer base. For those leaders that can present this knowledge to their customers, as well as their extensive HR knowledge, it will not only be an invaluable tool for the business, but for the leader as well.

Until next time … Be Inspirational!