The time is here (or soon will be) that your HR department will remind you that it is time for you to do your Performance Reviews.
Unless you are the lucky people that have changed to a more continuous improvement methodology and performance is a normal.
If you are thinking of revamping your performance process here are some aspects to consider:
Q: How long does the transition take?
A: This is dependent on the organisational structure and who drives the focus. Use technology as an enabler not as the tool to drive performance
Q: Will it improve engagement?
A: All research points to yes!
Q: Who should drive this in the organisation?
A: The higher up the organisation the better – Boards and CEO’s should be driving the agenda.
Q: Is everyone else doing this?
A: No – too many organisations are not talking about performance regularly but this is changing.
Q: Do we need to do it?
A: Vroom’s Expectancy theory in companies predicts that employees in an organisation will be motivated when they believe that:
- Putting in more effort will yield better job performance
- Better job performance will lead to organisational rewards, such as an increase in salary or benefits
- These predicted organisational rewards are valued by the employee in question
Harvard Business School outlines average performance loss in the below diagram:
So there are clearly some Pros:
- Performance becomes a frequent conversation
- It empowers employees and unites them to team and organisational goals
- Linking performance to career coaching and development is easier
- The leader gets to know the employee, their motivations, their concerns, their strengths and blind spots.
But also some Cons:
- It is hard to change mindsets
- Be prepared to lose some people – not everyone likes the accountability required to own their goals and do what they say they will do
- Be prepared for some surprises – the employees you think will embrace it may not and vice-versa!
Let us know what works in your organisation!
Stephen Cushion – General Manager, Consulting