Performance Evaluation Process

2014

Goals of the Evaluation Process

• To provide clear feedback to each associate on his or her performance• To help each associate reach his or her maximum potential with Orvis• To provide another opportunity for communication between a manager and their associate(s)

To help each associate succeed, professionally and personally

Can’t We Just Hire Who We Need or the Skill Sets We

Need?• Average Cost Per Hire, US $3,375*• Average HR Cost/FTE, US $1,610**• Our culture supports the belief that

every associate wants to do a good job.

• Our associates are a significant investment—we strive to have a return on that investment.

• *-PricewaterhouseCoopers LLC, 2010• **-PricewaterhouseCoopers LLC, 2012

Our Current Process

• Now includes two distinct parts–Annual reviews – in February of each

year–Mid-year check-in in August of each

year• Takes a significant investment of

manager & associate time• Causes angst to all involved

What We Have Learned

• The investment by manager and associates can and does produce positive returns.

• The mid-year review process is more comfortable for managers and associates, although less far reaching.

• We still lack clarity in many of the reviews that are written.

What We Have Learned-2

• We continue to have situations where a manager has made a decision re: associates performance or potential....and the associate does not know.

• Personal development goals often lack the ‘personal’ piece—i.e., how can this activity help this person develop skills/grow, rather than how it can help the business succeed.

2014 Overview• Basic format remains• All Core Values & Pathways to

Excellence added for assessment—slight change in the question to be answered

• More redundant questions combined• Continues to be a coaching-based

approach• Overall assessment added at the

conclusion—this associate, this job• Personalize the personal

development goal• 360 feedback format

Energize/Personalize the Personal Development Goal

• Purpose is to have every associate improve their skill set in some way by learning something new OR accomplishing something that will add value beyond the associate's normal duties.

• Choose something challenging, yet attainable. S T R E T C H.

Energize/Personalize the Personal Development Goal-2

• A SMART goal is:–Specific–Measurable–Attainable–Realistic–Time-bound

Actual Personal Development Goals• Learn Ipad/tablet operations by June

1st.• Read “This Book Title” and be

prepared to discuss each chapter at our monthly district calls.

• Read and review the MIT modules on interviewing by June 30th.

• Take course in managing multiple generations of employees by August 31 at a cost not to exceed $500.

Actual Personal Development Goals-2• Identify 2 Excel concepts/skill you

want to learn and 2 associates who you believe have those skills. We will then arrange training of at least an hour for each skill, no later than June 30.

• Choose an outside board you would like to serve on and pursue membership there to continue to develop you leadership skills by 6/1.

• Reinvigorate your Bell learning by………

With two others...

• Come up with 2 new, interesting, associate-centric personal development goals

The Orvis Compensation Philosophy

• Base-the associate’s on-going value to Orvis.

• Bonus (variable pay)-compensation that changes due to company or short-term individual performance.

Top Tips for Effective Evaluations

• Seek all relevant feedback for this associate.

MeasurableWork Product

MeasurableWork Product

Complete View of

Performance

Complete View of

Performance

Customer or Vendor

Perceptions

Customer or Vendor

Perceptions

SubordinatePerceptions

SubordinatePerceptions

AssociateSelf-Appraisal

AssociateSelf-Appraisal

CoworkerPerceptions

CoworkerPerceptions

SupervisorObservations

SupervisorObservations

Top Tips for Effective Evaluations-Preparation

• Start with a blank sheet of paper.

• Write the evaluation to the associate.

• Have the Culture Document at hand and use language from it.

• Seek last year’s review if you need it.

• Write, finish…..and wait.

Top Tips for Effective Evaluations-Delivery

• Read the review as if you were receiving it to see if it is clear.

• Send discussion topics with a meeting request.

• Give the associate a draft of the written review 4-24 hours ahead of the meeting.

• Memorize this phrase: “As your manager, my number one job is to help you succeed. I have an obligation to you and to Orvis to let you know of anything that limits your success.”

Top Tips for Effective Evaluations—

Follow Up• Touch base with the associate after the review.

• Address any new issues in a separate document.

• Finish the process—paperwork to HR.• Advise your manager of any

issues/surprises.

Performance Review ScheduleJanuary 13 Self-evaluation forms distributedJanuary 24 Self-evaluation forms dueFebruary 7 Managers’ evaluation forms completed and sent to department heads for review and feedbackFebruary 21 In-person associate reviews completeFebruary 21 Managers meet with Department Heads to review raisesFebruary 24 Final performance reviews forwarded to HRFebruary 26 Manager and associate meet to discuss compensationMarch 14 First checks with new salaries distributed

First Question?