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Importance of Effective
Communication during
Annual Cycle
NHRDN Webinar
May, 2014
2
NHRDN Webinar
May 2014
What will we cover today?
 Why focus on effective manager communication?
 How to prepare manage...
3
NHRDN Webinar
May 2014
Why focus on effective manager
communication?
 Annual Cycle culmination of an year’s hard work f...
4
NHRDN Webinar
May 2014
Performance Reviews
5
NHRDN Webinar
May 2014
Common Pitfalls…
 Managers feel nervous &/or
unprepared
 Insufficient time for the discussion
...
6
NHRDN Webinar
May 2014
Poll 1
7
NHRDN Webinar
May 2014
Impact on engagement
 Employees report dissatisfaction with their performance
management program...
8
NHRDN Webinar
May 2014
Manager Effectiveness
37%
63%
Effectiveness of Delivering Feedback
Effective Managers Ineffective...
9
NHRDN Webinar
May 2014
Poll 2
10
NHRDN Webinar
May 2014
Questions to ponder?
 Are trainings focused on
“performance management
system”?
 Do we train m...
11
NHRDN Webinar
May 2014
Effective performance review
delivery involves…
 Scheduling sufficient
time…without
interruptio...
12
NHRDN Webinar
May 2014
Effective performance review
delivery involves…
 “Sandwich”: Strengths >
Developmental Feedback...
13
NHRDN Webinar
May 2014
Do your managers…
 Avoid difficult questions, referring them to someone else?
 Does this make ...
14
NHRDN Webinar
May 2014
Invest in
 Performance feedback
communication training
 Role Plays
 Case studies
 Managing a...
15
NHRDN Webinar
May 2014
Rewards Communication
16
NHRDN Webinar
May 2014
Poll 3
17
NHRDN Webinar
May 2014
Positive Pay Perception improves
Engagement
 Pay perception is
determined by fairness
attached ...
18
NHRDN Webinar
May 2014
Pay Perceptions shapes by Pay
Communication
62%
38%
0%
20%
40%
60%
80%
Pay Communication Pay Sys...
19
NHRDN Webinar
May 2014
Benchmarking
 Compensation
information from
organization impacts
engagement positively
 Inform...
20
NHRDN Webinar
May 2014
Poll 4
21
NHRDN Webinar
May 2014
Questions to ponder?
 Do we train managers on “how to
communicate pay outcomes”?
 Are the mana...
22
NHRDN Webinar
May 2014
Effective pay decision delivery
involves…
Preparation
 Gathering information
about employee-
po...
23
NHRDN Webinar
May 2014
Effective pay decision delivery
involves…
Communicating
 Overall process involved
in decision m...
24
NHRDN Webinar
May 2014
Manager Communication
• Demonstrating ownership
• Understanding rationale of
salary guidelines w...
25
NHRDN Webinar
May 2014
Invest in
 Ensuring managers understand
compensation concepts well
 Ongoing training
 Specifi...
26
NHRDN Webinar
May 2014
Effective pay decision delivery
involves…
Communicating
 Overall process involved
in decision m...
Quality of delivery of Performance
Reviews & Pay decisions directly
impacts engagement
Building quality “delivery skill”
a...
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Importance of Effective Communication during Annual Performance & Rewards Cycle

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Veröffentlicht am

73rd NHRDN Webinar on Importance of Effective Communication during Annual Performance & Rewards Cycle by Ms Leena Sahijwani, (Director – Rewards & South Asia Leader- Women’s Network, GE South Asia) on 29th May 2014

Veröffentlicht in: Leadership & Management
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Importance of Effective Communication during Annual Performance & Rewards Cycle

  1. 1. Importance of Effective Communication during Annual Cycle NHRDN Webinar May, 2014
  2. 2. 2 NHRDN Webinar May 2014 What will we cover today?  Why focus on effective manager communication?  How to prepare managers for important communication?  Impact on engagement  Impact on fairness perception  Q&A
  3. 3. 3 NHRDN Webinar May 2014 Why focus on effective manager communication?  Annual Cycle culmination of an year’s hard work for employee  Managers determine ratings & rewards aligned with observations through this tenure  HR invests significantly to create a fair and objective process Yet… Actual conversations leave much to be desired
  4. 4. 4 NHRDN Webinar May 2014 Performance Reviews
  5. 5. 5 NHRDN Webinar May 2014 Common Pitfalls…  Managers feel nervous &/or unprepared  Insufficient time for the discussion  One Way Dialogue… no employee involvement  Usage of “negative” words  Generalizations  Employee “shut down” before start  Blaming the system
  6. 6. 6 NHRDN Webinar May 2014 Poll 1
  7. 7. 7 NHRDN Webinar May 2014 Impact on engagement  Employees report dissatisfaction with their performance management programs across organizations  If delivered well  If delivered badly
  8. 8. 8 NHRDN Webinar May 2014 Manager Effectiveness 37% 63% Effectiveness of Delivering Feedback Effective Managers Ineffective Managers
  9. 9. 9 NHRDN Webinar May 2014 Poll 2
  10. 10. 10 NHRDN Webinar May 2014 Questions to ponder?  Are trainings focused on “performance management system”?  Do we train managers on “how to deliver performance reviews”?  Does our performance management system focus on developmental plans/ improvement plans?  Do we gather feedback on performance appraisal delivery effectiveness?
  11. 11. 11 NHRDN Webinar May 2014 Effective performance review delivery involves…  Scheduling sufficient time…without interruptions  Rehearsing the conversation… anticipating questions  Providing performance review document before starting the meeting  Soliciting employee inputs  Being honest and articulate
  12. 12. 12 NHRDN Webinar May 2014 Effective performance review delivery involves…  “Sandwich”: Strengths > Developmental Feedback > Encouragement  Focusing on employee behaviours  Providing specific examples  Offering support and suggestions to improve areas identified  Continuing the dialogue on development plan
  13. 13. 13 NHRDN Webinar May 2014 Do your managers…  Avoid difficult questions, referring them to someone else?  Does this make employee feel less valued?  Become defensive if encountered with negative employee reaction?  Prepare them to respond calmly to negative reactions by  Allowing employees to speak openly  Understanding signs of emotional reactions  Remaining calm themselves  Express dissatisfaction with performance management system  Must Own Feedback to maintain their own credibility  Discuss other employee’s ratings or makes comparisons  Instead explain types of behaviours necessary to achieve a rating
  14. 14. 14 NHRDN Webinar May 2014 Invest in  Performance feedback communication training  Role Plays  Case studies  Managing adverse situations  Solicit employee feedback on delivery to shape future process/ system enhancements  Development plan focused approach to make improvement “real”
  15. 15. 15 NHRDN Webinar May 2014 Rewards Communication
  16. 16. 16 NHRDN Webinar May 2014 Poll 3
  17. 17. 17 NHRDN Webinar May 2014 Positive Pay Perception improves Engagement  Pay perception is determined by fairness attached to their pay decisions  Internal and external equity critical  How are people paid within my organization?  How are people paid outside my organization?
  18. 18. 18 NHRDN Webinar May 2014 Pay Perceptions shapes by Pay Communication 62% 38% 0% 20% 40% 60% 80% Pay Communication Pay System Effect on Perceptions of Pay Process Fairness Effect on Perceptions of Pay Process Fairness
  19. 19. 19 NHRDN Webinar May 2014 Benchmarking  Compensation information from organization impacts engagement positively  Informal sources negatively effect engagement  Organizational information often inadequate resulting in informal “chatter”
  20. 20. 20 NHRDN Webinar May 2014 Poll 4
  21. 21. 21 NHRDN Webinar May 2014 Questions to ponder?  Do we train managers on “how to communicate pay outcomes”?  Are the managers in our organization “compensation/rewards spokesperson”?  Do we have a mechanism to communicate directly with employees on pay increase information?
  22. 22. 22 NHRDN Webinar May 2014 Effective pay decision delivery involves… Preparation  Gathering information about employee- positioning within range, compensation & performance history  Identifying issues that may emerge and preparing responses  Ensuring un-interrupted discussion with key messages rehearsed
  23. 23. 23 NHRDN Webinar May 2014 Effective pay decision delivery involves… Communicating  Overall process involved in decision making  Benchmarking process  Factors involved- individual contribution, individual pay positioning, budget  Salary increase guidelines & it’s application for individual  Key performance messages… linkage of pay to Rewards
  24. 24. 24 NHRDN Webinar May 2014 Manager Communication • Demonstrating ownership • Understanding rationale of salary guidelines well • Ensuring availability of right level of information prior to planning • Ensuring employee understands rationale of decision • Informing employee’s positioning vs. range • Communicating in time… • Dismissing as someone else’s responsibility • Leaving things to last minute • Skirting the issue… concerns don’t go away by ignoring it • Asking employees what they were expecting… it’s bound to be more! • Committing to increase the salary • Revealing someone else’s pay outcome • Going into discussion without homework
  25. 25. 25 NHRDN Webinar May 2014 Invest in  Ensuring managers understand compensation concepts well  Ongoing training  Specific training prior to launch of key programs/ changes in pay approach  Provide toolkit to help communicate  Key messages on budget, process, concepts  Solicit employee feedback on delivery to shape future process/ communication enhancements
  26. 26. 26 NHRDN Webinar May 2014 Effective pay decision delivery involves… Communicating  Overall process involved in decision making  Benchmarking process  Factors involved- individual contribution, individual pay positioning, budget  Salary increase guidelines & it’s application for individual  Key performance messages… linkage of pay to Rewards
  27. 27. Quality of delivery of Performance Reviews & Pay decisions directly impacts engagement Building quality “delivery skill” amongst our managers critical We owe appropriate feedback & rationale for pay increase to our employees In summary..

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