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Photo: Drew Beamer

New Research Indicates Desire for Recognition, Feedback

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In the past several months, many companies have modified their performance programs. From streamlining their review processes to running more frequent pulse surveys, organizations around the world are seeking to make changes that will ultimately boost employee performance and productivity.

Our company, Reflektive, sought to measure these changes with a performance management survey. In June we reached out to 445 HR professionals and business leaders, and 622 employees, to understand the current state of their performance programs. We compared these results to a similar survey we ran in 2018. Our 2020 Performance Management Benchmark Report uncovered meaningful performance management trends over the past two years, as well as insights into the current state of work.

Formal Processes of Performance Management Consistent Since 2018

A surprising observation was that the formal processes of performance management have not changed significantly over the last two years. Nearly half of reviews are run annually or less frequently. Forty-six percent of respondents use descriptive performance ratings, such as “meets expectations.” 

People Analytics Present Big Opportunity

The survey also found that only 50% of HR and business leaders are using people analytics to predict performance and turnover. What’s interesting is that most leaders believe that people analytics has become more important, however they’re still not utilizing this technology to inform strategic people decisions. This gap can really impact workforce planning, as organizations struggle to fill needs when employees depart.

Employees Desire More Communication and Transparency from Companies

The employee survey results revealed that workers seek more communication to stay informed and engaged at work. Nearly half of respondents desire more consistent communication from leadership, and 37% said more consistent communication was needed from colleagues. 

In a similar vein, we found that employees sought more transparency from their employers. Only 19% of employees believed that their organization was transparent about upward mobility. Twenty-one percent said their company was communicative about salary freezes, and the same percentage said that their org was transparent about potential pay cuts. Employees are cognizant of the pandemic’s economic toll, and would like their companies to be honest with them about the business impact.

Employees Seek More Feedback and Coaching for their Growth

Another interesting insight we uncovered was that employees want more from their performance programs. Specifically, they’re looking for increased coaching, dialogue and recognition from their managers. Since 2018, there’s been a 3.2X increase in the percentage of employees that desire recognition. We also observed a nearly 90% increase in the percentage of employees that desire formal feedback conversations monthly or more frequently.

A performance bright spot was the manager-employee relationship. Over 80% of employees surveyed said that they are having 1:1s with their managers. Additionally, 80% said that these meetings were productive. This data was really uplifting to me, since driving alignment and communication can be tricky when everyone is working remotely.

However, we did identify a major communication gap: only 20% of employees reported that they receive weekly feedback. So it appears that managers and employees are talking regularly about ongoing work and projects, but employees still aren’t receiving the coaching that they desire. This represents a huge opportunity for managers — they can benefit from training on how to ask important questions, and how to provide valuable feedback on a more regular basis. Performance management technology — including feedback prompts and 1:1 tools — can help drive productive coaching conversations too.

Getting Feedback Remains Challenging for Employees

One interesting discrepancy between leaders and employees was sentiment around initiating feedback conversations. Only 14% of HR professionals and business leaders felt that employees weren’t empowered to initiate feedback conversations. However, 30% of employees — or over 2X the percentage of leaders — felt that they weren’t empowered to request feedback. This discrepancy indicates that HR teams and leaders are overestimating employee comfort with feedback processes. Employee training on giving and receiving feedback, and an easy-to-use feedback tool, can help fill this gap.

Executives and Employees Remain Optimistic for the Future

While sentiment and outlooks are continuously evolving in 2020, both executives and employees remain optimistic about the future. Specifically, executives anticipate more investment in technology (35% of respondents) and more efforts to boost engagement and retain employees (29% of respondents). 

Employees anticipate that six months from now, it will be business as usual (34% of respondents). Additionally, 26% expect to have learned new skills, and 25% believe they’ll feel proud of their accomplishments. Despite the many headwinds that they’re facing, employees feel that they will come out of 2020 stronger and more prepared for the future.

As employees, HR teams, and executives navigate the ever-changing environment, agility and resilience will be crucial. The ability to work productively in different environments, and collaborate cross-functionally, will be highly valued. Companies that maintain engaged and productive workforces will be the success stories of 2020.

This post is sponsored by Reflektive.

Photo: Aleks Marinkovic

#WorkTrends: Aligning Around Performance Management: New Findings

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Listen to the full conversation and see our questions for the upcoming #WorkTrends Twitter Chat. And don’t forget to subscribe to the podcast, so you don’t miss an episode.

How, where, and when we work may have changed, but there still needs to be a way to manage performance. But do employees want that right now? Amid the uncertainty, the answer is yes. Employees are yearning for continuous feedback, according to a 2020 performance management benchmark report by Reflektive, which surveyed over 1,000 HR practitioners, business leaders, and employees. And the feedback process is bolstering the relationship between managers and employers. 

I invited Jennifer Toton, Chief Marketing Officer at Reflektive to #WorkTrends to shed light on this benchmark study and dig into some of the trends it reveals. But as Jennifer pointed out, what was surprising was what didn’t change. The formal process of performance management and the number of reviews are still intact, but the way we give and receive feedback has really evolved. “We saw a 90% increase in employees who want more formal feedback conversations on a monthly or more frequent basis.”  

Also compelling, to me, is that even in these times, employees have retained a sense of optimism. Many believe that six months from the time of the survey, business will remain as usual. A quarter believed they would learn more skills. Another quarter said they would feel proud of the work they accomplished, and about a fifth said that they will feel more productive. “Our employees are resilient and they’re adapting to the change,” added Jennifer. 

Much is up to the managers, though. They must be transparent in their communication, said Jennifer, particularly around salary freezes and pay cuts, as honesty feeds trust. In addition, 80% of employees said they were having regular meetings with their managers, and that they found the format was not only positive, but productive. 

We covered a lot of ground in this discussion, so I encourage you to have a listen for yourself. Got feedback? Feel free to weigh in on Twitter or on LinkedIn. (And make sure to add the #WorkTrends hashtag so others in the TalentCulture community can follow along.)

 Twitter Chat Questions
Q1: Why do organizations struggle with performance management? #WorkTrends
Q2: What strategies can help improve performance management? #WorkTrends
Q3: How can leaders refocus performance management for better results?  #WorkTrends

Find Jennifer Toton on Linkedin and Twitter

This podcast is sponsored by Reflektive.

(Editor’s note: This month, we’re announcing upcoming changes to #WorkTrends podcasts and Twitter chats. To learn about these changes as they unfold, be sure to subscribe to our newsletter.)

Performance Management: It’s Not a Product, It’s a Partnership  

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For winter, here’s a cold-weather metaphor any homeowner can relate to. But it’s a model that, as you’ll see, has to do with any major shift in a big system. Imagine you’ve finally made the plunge and opted to spend a whole lot to invest in a brand new heating system for your house. It’s super high tech: state of the art, energy efficient, entirely customized to your needs, with digital thermostats and a cognitive design that will not only remember your heating needs but anticipate them. You can control it from your smartphone and, theoretically, coach family and guests on how to use it. The installer walks you through it all, and it seems incredibly simple. And then the installer leaves.

And you realize you haven’t a clue how to use it.

What do you do?

You call the installer. Come back and show me again. Or my family will be furious with me, because I made them give up the old furnace that may have clunked and roared, but it worked.

Workforces are not heating systems. But as with any other essential part of the infrastructure, you can’t make a massive, systemic change to how you manage the workforce and then let it run itself. What we’ve also found is that in terms of performance management, 88% of companies want to rethink how they do it, according to a 2015 study by Deloitte. But of those, only 8–12% stopped relying on performance reviews.

Here’s one simple reason: they don’t get enough help. To revise one of the very foundations of an organization — one that blends culture with process and strategy with system, and has an impact on the single most valuable asset, people —  there should be a partnership guiding the change. Just as we set expectations for our employees, it’s time to set them for our consultants as well. What do we need to drive successful change? Here are five key behaviors companies can ask for:

  1. Don’t just hold our hand. Inspire us. This is one instance where handholding is not just appropriate, it’s necessary. No matter how sophisticated an organization’s knowledge of the software, or how savvy the HR team is, there are going to be gaps in that intelligence. It’s not just about software and tech issues, either. It’s about the very role performance management can take as a driver of organizational success. You want a consultant who sees the role of performance management as a catalyst, not a punishment, to enable employers to grow and thrive. It’s part technician, part coach.
  2. Don’t make it too complicated.  There are too many instances of plug and play applications that are not fully utilized due to poor support and overcomplicated mechanics — yes, and that can adversely affect both successful ROI and next steps. A badly conceived change could cancel out the value of future initiatives. Innovation only drives innovation when it works. Not only do we need dedicated human beings as well as chatbots to help troubleshoot, there should also be a point when a complicated problem is handled back on the consulting end, freeing HR to go back to its other tasks.
  3. Craft alignment with the customer. I recently wrote about the need to revise the foundational culture underpinning how companies manage performance: “Without the engagement and alignment of our workforce, all the big plans in the world won’t amount to much.”  The same can be said of a support system. If a company has committed to changing its performance management, it’s made the cultural shift. But without the engagement and alignment of the provider / consultant from which it’s sourcing its new performance management system, that cultural shift won’t amount to much. The new system may not function smoothly or seam into the existing organizational culture, and may drive disengagement and resentment among the workforce.
  4. Partner, don’t just provide. The tremendous shifts transforming the world of work point back to the same need again and again for teamwork not just within organizations, but outside of them. Success depends on positive collaboration — working together to facilitate the change, initiate the change, train the change, and then maintain the change. Innovative companies will not only customize the software and elements like the dashboard or the portal, they also tailor the entire process, managing not just the moment of change, but the continuum from initial adoption to fully integrated use.
  5. Act a bit like a startup. There’s a recent, compelling article on organizational change by friend and colleague Josh Levine. He breaks organizational culture into 5 Ps: package, potential, people, purpose, and perception. It’s also an apt way to look at how an organization handles a profound change such as a new performance management system. Just how the system works — what’s in the package has to be clear: its platforms, check-ins, surveys, self-assessments, and more — so employees know what to expect. But they also should see the merits and potential — for instance, if management is going to be based on motivation instead of separation (as happens in stack rankings and badly designed peer reviews), or performance reviews are going to happen more often and with less stress involved and more flexibility.

Presenting the potential is up to the people involved, and may be more effective when it’s conveyed by those who created the system. They don’t need to sell it anymore, whereas the organization may feel compelled to pitch it to the workforce to facilitate a smoother adoption. And is the workforce given the chance to really see the purpose of this new model from their own point of view? It’s as critical to manage perceptions as it is to carefully manage change — but to do that transparently and authentically. That needs to come from both provider and purchaser.

We talk a whole lot about the need to change our performance management systems, and how they’re already changing for the better. We focus on how best to engage rather than evaluate, how to use feedback to empower, how to stop treating employees like numbers whose performance simply checks off desired boxes. The specifics of a system can vary widely. But the bottom line should be a sustained, agile, responsive and scalable partnership.

This article was sponsored by Reflektive.  All opinions are that of TalentCulture and Meghan M. Biro.

The Best Performance Management Puts Humans First

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It’s one thing to decide to revise your performance management approach. It’s another thing to successfully re-engineer the mindset that embraces the change — and then manage that transformation across the organization. Too often, performance management is still stuck in an old framework that conflates human performance and business performance as one. If there’s anything we know now — illuminated by revealing data — it’s that humans must come first.

Why intentions get derailed

Yes: our business or organization is only as good as its people: to a certain extent, that’s true. But confusing how we measure what people do and how the organization is doing often results in our people feeling devalued and their efforts overlooked. We know what happens next. While many companies say they want to change how they evaluate performance, 9 out of 10 still use numerical performance scores to not only to rank employees but also determine compensation. A recent HR strategy roundtable focused on plans versus reality: Most organizations average a mere two hours a year on performance management per employee. Meanwhile, half (48%) of employees surveyed in a recent study felt that a performance review helped them improve their performance.

Without the engagement and alignment of our workforce, all the big plans in the world won’t amount to much. The organization is likely too busy spinning its wheels to just sustain a workforce. We’re in a talent crunch: good talent is hard to find. Great talent — even harder. Facing churn and constantly forced to train and rebuild new teams, some managers are understandably going to fall back on the systems they already well know, and resist the prospect of yet more change. The complex fabric of today’s workforces will only exacerbate that sense of being under siege.

As the business performance suffers, it seems to underscore the need to better oversee how the people are doing, which can turn into a review of the mistakes or lapses they made in the past turbulent year. Some exasperated managers may want to point the finger at employees not ‘pulling their weight.’ Competitive rankings, awkward peer reviews, accusations of unfairness, a long future of compensation based on a half-hour meeting, surveys that start with key weaknesses — there go any plan to retool the workplace culture. There, then, go some of your best people. It’s crisis HR: forget redesigning the house at least until the fire’s out. Newsflash: the fire isn’t going to go out.

Change requires better tools

Here’s what must happen instead. Empower everyone. The role of managers is to enable the organization to work to keep it working: their loyalty must be to productivity. They may know full well there’s a better way but simply not believe it’s viable given the current turbulence they’re trying to navigate. But it’s exhausting, managing by crisis mitigation. It’s not engaging for anyone. So, if you can pry your captains’ hands off the wheel for a moment, it’s an ideal time to make the change — if it’s done right. Successfully initiating and seeing through a complete shift to a culture of collaboration, innovation, and empowerment — for everyone, including managers — means capitalizing on the powerful tech and innovative systems now available.  That way all levels of the organization, particularly management, is secure in knowing nothing will fall between the cracks.

In with the new

This new model of performance management functions on technology that frees manages to play a far more frequent and connected role in the overall performance of employees. And here’s what happens: the value is put back into people. On the human side, we get to be — human. Whether a meaningful debriefing when a project is still fresh in everyone’s mind, team feedback given by request, individual check-ins through a day or a week, or exchanges around goals and targets, the mindset is freed of a transactional imperative. There’s no need for human effort to be flattened into a spreadsheet and numbers. Replacing that is a far more collaborative and ongoing conversation that’s far more responsive to the needs of everyone involved and thus more productive in terms of the data and knowledge it creates.

On the tech side, the difference is a sea change. Goal alignment and attainment, for instance, can be measured on a granular level for employees and managers — to see specially and immediately how they’re working and what kind of progress is taking place. What skills need to be deepened, what training needs to be added, what improvements can be made — all is based on information, not an onslaught of impersonal rankings. Performance reviews, whatever time period they do cover, are based on tangible and real data that, in turn, is connected back to the employee’s own experience of the work. The tech integrates into existing systems and platforms, becoming part of the workplace — within the workplace, not outside of it. And every action can be measured to provide data that empowers improvement. The bottom line is responsiveness. The right performance management system is responsive the organization’s needs as well as human needs — and acts as a bridge between the two.

Organizations are only as good as their people, it’s true. We also know that employees do far better when they can take ownership of their own success and invest in their own excellence. The key difference is that people need to feel like that paradigm’s not a liability, but an advantage. To drive true change in performance management, there must be a powerful set of tools in place to keep it from going off the rails, set it on its course, and let it gain momentum from within. The right tech can effectively free managers from the relentless administrative pressures that tend to, by necessity, narrow their focus — when what they need is to be freed to connect with their workforce. The best tools put humans first — all of them.

To learn more, check out the webinar, “Making Performance Reviews More Human.”  from Reflekive.  Enjoy.

Photo Credit: Ravennanotizie Flickr via Compfight cc