Annual reviews are a long time standard for businesses to evaluate employee's performance. With the changing environment and generational difference, the standard needs some changes to match the needs of the current workforce.

1. Rethinking
HR
Conven.ons:
The
Future
of
Annual
Reviews

2. Performance Management
§ Expecta(ons
set
at
(me
of
hire
§ Job
descrip(ons
§ Feedback
during
the
year
+/-­‐
§ Annual
review

3. What is the Purpose for
the Annual Review?
§ Money
§ Deliver
feedback
§ Praise
§ Set
expecta(ons
§ Course
correct
§ Change
behavior
or
performance

4. Are we Accomplishing These Goals?
98
percent
of
645
HR
managers
believe
yearly
evalua(ons
are
not
useful*
60
percent
of
HR
execu(ves
give
their
own
performance-­‐
management
systems
a
*
Achievers
study
grade
of
C
or
below**
**
World
at
Work/Sibson
Study

5. Common Trends and Pitfalls
§ Late
reviews
§ Not
thorough
or
specific
§ Delayed
feedback
that
is
no
longer
relevant
§ Sole
focus
on
money
§ Not
used
as
a
resource
for
management
of
performance

6. How it makes your
employees feel?
§ Nervous
§ Did
not
recognize
them
for
their
contribu(on
§ Perceived
as
inaccurate
§ Did
not
provide
meaningful
feedback

7. Questions to Consider
Do
the
piTalls
outweigh
the
purpose?
Why
do
we
s(ll
do
these?
What
can
be
beVer?

8. Let’s look at a real case study

9. What we are trying to accomplish?
§ Top
performance
§ Engaged
employees
§ Establish
clear
expecta(ons
§ Set
manager
and
employee
on
the
same
path

10. Designing Performance Management starts with
understanding PEOPLE and what is expected of
them and what motivates them.

11. Generational Considerations
§ Baby
Boomers
§ Gen
X
§ Millennials

12. Baby Boomers(Born between 1946 – 1964)
Who they are… How they are motivated…
§ Work
centric
§ Independent
§ Goal-­‐oriented
§ Compe((ve
§ Posi(on,
perks
and
pres(ge
§ Challenging
projects
§ Praise
for
long
hours
§ Title

13. Gen X (Born between 1965 and 1980)
Who they are… How they are motivated…
§ Individualis(c
§ Technologically
adept
§ Flexible
§ Value
work/life
balance
§ Freedom
and
responsibility
§ Hands-­‐off
management
§ Change
§ Fun
in
the
workplace

14. Millennials (Born between 1980 and 2000)
Who they are… How they are motivated…
§ Tech
savvy
§ Family
centric
§ Achievement
oriented
§ Team
oriented
§ AVen(on
craving
§ Instant
feedback
§ Meaningful
work
§ Inclusion
§ Having
a
voice

15. Motivational Considerations
§ Hamsters
§ Crash
and
Burners
§ Disengaged
§ Almost
Engaged

16. The Intersection
You
Are
Here
Video
Source:
Blessing
White

17. The Hamsters
§ Comfortable
(perhaps
too
much)
§ Low
company
contribu(on
§ High
sa(sfac(on
Who they are…
§ What
feedback
can
be
given?
§ How
do
you
increase
contribu(on?
§ How
do
you
challenge?
What to
consider…

18. The Crash and Burners
§ “Quit”
and
stay
§
High
company
contribu(on
§
Low
sa(sfac(on
Who they are…
§ Are
goals
aligned?
§ Do
they
fit
the
company
culture?
§ What
is
their
mo(va(on?
What to
consider…

19. The Disengaged
§ Low
company
contribu(on
§ Low
sa(sfac(on
§ Not
a
fit
for
the
company
Who they are…
§ Can
you
change
anything?
§ Is
it
worth
changing?
§ Have
they
received
feedback?
What to
consider…

20. The Almost Engaged
§ Reasonably
sa(sfied
§ High
company
contribu(on
§ Highly
employable
Who they are…
§ How
can
you
keep
them
challenged?
§ How
can
you
con(nue
to
mo(vate?
§ What
if
they
lef?
What to
consider…

21. How to handle the
intersection of
generations and
engagement

22. Focus on Goals
§ Proac(ve
§ Timely
§ Construc(ve
§ Challenging
§ Flexible
§ Tied
to
their
mo(va(on

23. General Guidelines for Goals
§ Set
goals
at
the
beginning
of
employment
§ Use
as
a
guide
for
performance
§ Deliver
feedback
on
achievement
§ Flex
with
the
business
environment
§ Customize
to
their
mo(va(on
§ Tie
to
company
goals

24. SMART Goals
§ S(ll
relevant
for
more
tac(cal
posi(ons
§ Gives
a
framework
for
managers
to
write
goals
But
how
do
we
write
goals
for
senior
level
people
and
subjec(ve
roles?

25. Setting goals for senior
level employees
§ WriVen
by
employee
§ Specific
with
a
deliverable
§ Don’t
use
the
words
“con(nue,
maintain,
manage”
§ Use
words
like
“create,
develop,
deliver”

26. Money considerations
§ Budget
§ Timing
§ Current
structure
§ Performance-­‐based
§ Employee
ranking

27. Making Time for Feedback
What
if
they
are
not
mee(ng?
§ Skip
level
mee(ngs
§ HR
Check-­‐ins

28. A few words about documentation
“The
inherent
dishonesty
of
reviews
-­‐-­‐
the
different
reviews
by
different
managers,
the
ofen
disconnect
between
reviews
and
objec(ve
measures
-­‐-­‐
is
what
every
plain(ff's
aVorney
yearns
for.
They
love
it
when
there
are
performance
reviews,
because
they
know
they
can
use
them
to
shred
a
defendant's
case.
Show
me
a
paper
trail,
and
I'll
show
you
the
path
to
a
successful
lawsuit.”
Source:
Samuel
Culbert

29. More Meetings,
More Time?
§ Think
of
it
as
course
correc(on
§ Set
small
mee(ngs
throughout
the
year
§ Incorporate
feedback
into
the
current
status
mee(ng
§ Document
more
ofen

30. As
with
everything,
this
can
not
be
an
HR
only
ini.a.ve.
This
is
a
culture
and
philosophy
change.
Making it happen…

31. Guidelines for Change
§ This
is
not
an
overnight
change
§ Talk
to
your
people,
managers,
leadership
§ Evaluate
what
DOES
work
§ Think
about
training
and
coaching
for
managers
§ Review
the
business
purpose
of
the
annual
review

32. A Better Way
“Performance
previews”
§ Two-­‐sided
§ Straight-­‐talking
§ Focus
on
results
§ Clear
expecta(ons
§ Everybody
can
win

33. Key Take Aways
§ Analyze
your
annual
review
purpose
compared
to
the
overall
performance
results
§ Understand
your
genera(onal
differences
and
needs
§ Analyze
your
workforce
engagement
§ Consider
management
training
for
change,
mo(va(on,
and
goal-­‐selng
Create
a
program
focusing
on
proac(ve,
real-­‐(me,
results
oriented
feedback

34. Julie McDonald
763-300-2237 Thank You!!!!