5 Alternatives to the Annual Performance...

Strategic Talent Management 1

© 2015 Halogen Software Inc. Confidential – Not to be used, copied or redistributed without Halogen’s prior written permission.

5 Alternatives to the Annual Performance Review Joyce Liu-Countryman, Senior Talent Management Consultant



Joyce Liu-Countryman, M.S. Senior Talent Management Consultant

Halogen Software

Today’s Presenter



• 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



Poll

Why are you here today?

• Our appraisal process is complicated & time consuming

• Employee engagement is low

• To make our process more strategic, responsive & aligned

• All of the above



“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



Is the annual appraisal…dead?



Our changing environment



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



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



Performance Management framework

Development

Career Progression

Goals

Feedback

Rewards



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)



5 Alternatives

• Quarterly goal setting

• Development discussions

• Project reviews

• 360 Feedback assessments

• Check ins

1. Quarterly goal setting



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



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



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



First align



Then set!



Stay engaged

2. Development Discussions



Let’s change the development discussion



Where do you want to be in 2 years?



How are we doing?



Did we get there?

3. 360 Degree Feedback Assessments



More accurate, credible and reliable performance appraisal ratings

Increased employee acceptance of performance feedback

Improved employee performance Higher functioning work teams



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

4. Project Reviews



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!



What’s in a Project?

Project Process

Projects

Projects



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



Project Process



Creating a Project Review



Evaluate

5. Check Ins



The Holy Grail

Development

Career Progression

Goals

Feedback

Rewards



Start talking

Employee feedback and coaching templates

o Conversations o Goals o Feedback o Development Plans

http://www.halogensoftware.com/learn/forms-and-templates/employee-feedback-and-coaching-templates

http://www.halogensoftware.com/learn/forms-and-templates/employee-feedback-and-coaching-templates



1:1



Poll

I’d like more information on how modern performance solutions can help us improve engagement, retention and productivity?

• Yes

• Not at this time, thanks



Q&A



Learn More

http://www.halogensoftware.com/learn

http://www.halogensoftware.com/blog



Thank you!

Joyce Liu-Countryman, M.S.

Senior Talent Management Consultant Halogen Software

[email protected]

mailto:[email protected]

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