confusedWe all want a purpose in life, don’t we?

Who wants to sit at a desk every morning, not knowing why he or she bothers going to work every day?

Sadly, it’s a mentality that is plaguing more and more high-performers whose development aspirations went out the window with their company’s profit.

According to a survey conducted by i4cp, 76% of respondents said performance management is very important this year, but a meager 23% said their companies are very effective at actually doing it. (http://www.i4cp.com/productivity-blog/2010/01/28/20-years-and-counting-leadership-development-once-again-the-most-critical-issue-facing-organizations-in-2010)

“Finding and developing the right leaders has been considered a top challenge for companies for decades,” said Jay Jamrog, SVP of Research at i4cp, in the report cited above. “Given the volatility of the last year and the accelerated pace of change in the economy, companies should be treating leadership and development as both an urgent survival tactic and a business opportunity.”

“The companies that get it right – and several high-performing companies are doing it right already – have potential for great success.”

Another recent survey by Deloitte, found 65% of surveyed executives are highly to very highly concerned about losing high-potential talent in the year after the recession ends.

Are you one of these execs worrying your high-performers might ditch you as soon as the opportunity presents itself?

The important question is: what are you ACTUALLY doing about it?

If you’re stuck, the following are a few key recommendations for getting you started.

1. Identify your high performers, and help them assess their strengths and development needs. Then work in partnership with them to create an Individual Development Plan, and support them in executing the plan.communication

2. Open the lines of feedback and communication to discuss corporate and personal development goals with your high performers. If you’ve already done so in the past, maybe it’s time for an update. Make sure your superstars know how their personal goals and dreams may be in alignment with the organization’s goals and plans for the future.

        3.  Link compensation more directly to organizational and individual performance. Wherever possible, use self-funded incentive plans to create meaningful rewards and distinctions between superior and standard performance.

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“People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.”   - Zig Ziglar showermain

There’s no better time than the beginning of the year to assess your employees’ motivation. Recent studies have shown employee engagement levels are down. No surprise there, but the surprises will hit when employees either leave because they’re not challenged or when they adversely affect company growth because they’re losing steam.

“A Gallup study published in August involving about 32,400 business units found that those in the top quartile on engagement had 18 percent higher productivity, 16 percent higher profitability and 49 percent fewer safety incidents compared with those in the bottom quartile on engagement,” writes Ed Frauenheim in “Commitment Issues- Restoring Engagement Issues” (www.workforce.com).

Here are some questions to help you out:

·         Do your employees understand how they can best make a difference?

·         Do they seem “pushed” to make objectives, or “pulled” toward the organization’s mission?

·         Are their objectives realistic, objective and attainable?

·         Are your staff members able to share in the rewards, as well as the risks?

·         Do they act more like “hired hands” (employees) or people with a vested interest in the business (owners)?

motivation And finally…

      ·     Are your employees motivated?

This last one sounds like a no brainer, but you’d be surprised how many employers forget (or don’t want to) ask that question.

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lookingatboss“When people honor each other, there is a trust established that leads to synergy, interdependence, and deep respect. Both parties make decisions and choices based on what is right, what is best, what is valued most highly. -Blaine Lee

It’s time to get real. Employees want authenticity, not manipulation.

The recession won’t last much longer and if your star performers don’t stick it out with you, you’re in trouble as other companies start taking advantage of the upturn. We agree with Larry Sternberg who argues that managers should “Give Employees What They Need.” (http://www.workforce.com/archive/feature/26/71/17/index.php).

As economic woes pass, managers should keep in mind that people will remember how their organizations treated them in the bad times (and the good times too), Sternberg says.
That treatment is a significant factor in a company’s ability to motivate and retain the best people, as well as attract them in the first place.
Sternberg says there are two important points to keep in mind:
1. Each person has a unique configuration of needs—their own goals, wants, desires and aspiratio
ns.
2. People stay in organizations that meet their needs.


Not a Quick Fix
Many surveys indicate that unsatisfactory relationships with supervisors or co-workers may be the single greatest cause of employee turnover. Forward–thinking employers are, therefore, taking steps to build a culture based upon mutual trust and respect.  Some are going even further to help ensure that their employees understand how their contributions are integral to the success of their organization.


happyDemonstrating authentic care towards your employees and their needs is not a one or two or three time deal. It should be a way of being, and an underlying atmosphere in your company or organization.


“An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success.” -Stephen Covey


Employees are empowered when they feel valued/respected and their needs are met … or they at least know you’re trying.

So… are you trying?

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Goalsharing works. It is not the “Program of the Month.” It is a way of being – a proven process for helping organizations to not only survive but also to thrive in a rapidly changing environment.

Goalsharing is a means of working smart that engages and rewards employees for continuous improvement. Over time, it transitions employees to “business partners.”

Goalsharing recognizes that:

  1. goalsharingEmployees have unique abilities
  2. Employees prefer to understand/be involved in the business
  3. Employees want to make a difference

Goalsharing creates * Synergy * Financial and non-financial goal compatibility and alignment *when done right.

Early Goalsharing pioneers realized that for employees to make their contribution, they need to understand the business and have appropriate “line of sight” – to actually see how their efforts impact organizational results.

Their organizations address this challenge by finding simple ways to communicate the goals of the business. Then they help staff members to see where they can make the most difference and teach them to craft simple goals that are specific, measurable and realistic.

For tips on getting the MOST from Goalsharing, click: http://ltcperformance.com/GSWorks.html

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questionmark In this recession, can you afford to throw inexperienced employees into the mix who don’t have a clue what the company’s goals or mission are?

Some time back, we were conducting employee focus groups in preparation for the development of a new base salary program for a client company. As part of the warm-up, we posed the question:

“What is XYZ’s mission and purpose as an organization?”

 Stunned silence followed for a moment, and then one blatantly honest soul blurted out, “No damn clue.”

Soon, everyone in the room jumped into the fray and described a total lack of understanding of the business’ goals or even their reason for being.

Employees at Booz Allen Hamilton and Vestas Wind Systems would be unlikely to utter those three clueless words, according to one Workforce Management article by Garry Kranz. As the economy slowly climbs into recovery mode, many are still paring back. But Hamilton expects to add 5,000 jobs by the close of 2009.

Eighteen months ago, Booz Allen began an overhaul of its on-boarding processes. It begins delivering training and developmental tools to new employees the moment they accept a job offer, Kranz writes.

 During preboarding, new recruits are directed to an internal Web portal to access job information, “early learning” activities and company information, including the company’s 15 business lines and messages from senior executives.

training12-2“Preboarding is all about getting someone engaged and excited about being here, prior to their actually showing up for their first day,” says Aimee George Leary, who is the McLean, Virginia-based consulting company’s director of learning and development.

Vestas, which has its U.S. headquarters in Portland, Oregon, had a U.S. workforce of nearly 1,900 people in 2008. Nearly three times as many employees could be on board in 2010, according to Kranz.

 The resulting “people and culture tsunami” is prompting Vestas to take a more comprehensive approach to training and development, says Helle Bay, the company’s senior vice president of business performance and operations.

 “We had to focus on our people and our culture: finding out what’s good for them and walking the walk” to help them grow professionally, Bay says.

It sounds like Booz Allen and Vestas do everything but throw its employees in and let them “sink or swim.”

The process of learning by osmosis isn’t the best in the real world of business. Getting everyone involved in the basics of your business makes dollars and sense – take the Booz Allen and Vestas examples as evidence.

Using short, well-planned meetings held over a period of several weeks/months can help you give your team members a solid foundation.  

Here are some topics to consider including in your sessions:

·         What is your company’s mission statement and how does each individual fit in?

·         Why is your company in business, and how do you measure your success as an organization?

·         Where does revenue comes from at your company?

·         What are some of the unique features of your company positioning strategy and value to customers, and who are your major competitors?

This is the kind of information that helps people at all levels develop a big picture understanding of why they do what they are doing in your organization, and that all adds up to motivation. 

People at all levels need to have a basic understanding of what they are trying to accomplish and why, in order to achieve results.

Read the rest of Kranz’ article, “Training that Starts Before the Job Begins” at http://www.workforce.com/section/11/feature/26/55/57/.

 

 

 

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How can you tell if your Compensation Program is working?

The first clue is whether or not the organization is meeting its short and long-term financial goals. Even in these tough economic times, financial performance provides some good clues.  

If not, SYMPTOMS might include:

time-for-a-checkup1.    Difficultly attracting/retaining your TOP performers, while less productive ones “stay put.”

2.    Lack of focus from employees who often seem unclear as to how they can help the organization meet its objectives

3.    Team members exhibit entitlement thinking and are slow to adapt to necessary changes 

4.   Goals that lack compatibility across the organization, causing unnecessary conflicts or deadlocks.

5.    Employees act like “hired hands” versus concerned business partners

Those with high functioning compensation/rewards programs frequently cite: 

  ·      Increased revenue

   ·     Decreased expenses

  ·      More efficient/streamlined processes

  ·      Improved service and productivity

  ·      Greater overall job satisfaction

How well is your Total Rewards Program working in helping you to reach the organization’s goals?

In coming blogs, we will discuss how to give your organization a simple “check-up.” Stay tuned.

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Some excellent coaches of winning athletic teams are very knowledgeable about how to help people achieve their individual best, highest performance. This makes perfect sense, in that getting an individual to perform at his or her full potential is the first step in creating a winning team. So, I sometimes look to the world of sports to learn a lesson or two on eliciting the best from the individuals that make up teams in the business world. That’s why Coach John Wooden is my “go-to man” on peak performance. wooden

One of Coach Wooden’s favorite maxims speaks to the important distinction between being fair and treating everyone the same. While we are all intent on being fair, it is true that fairness ≠ handling each individual equally. Here’s the maxim:

“Fairness is giving all people the treatment they earn and deserve. It doesn’t mean treating everyone alike.”

Somehow, in a culture where we are concerned about being impartial and politically correct, it seems that we have mistakenly drifted away from holding people accountable for their actions. No matter how often we hear the buzzwords pay for performance, the truth is that most organizations still don’t do it. Since performance matters more than ever, why not take the time now to create an authentic culture of accountability, where at all levels, people are encouraged to hold themselves and others accountable for living the values of the organization.

What do you think? Is it important to have a performance and accountability culture? Can you achieve significant improvements in organizational performance by tuning in to the people on your team, providing meaningful feedback, and rewarding them for their results?

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I have long been a fan of the “Wizard of Westwood”, Coach John Wooden. The legendary UCLA basketball coach’s phenomenal achievements in basketball probably pale in comparison to his contributions as a teacher and developer of  young mens’ character. Wooden still to this day uses maxims or “Woodenisms” to teach important principles of life. One  seems particularly fitting for the current economic condition in our society:

“Bad times can make you bitter or better.”

NCAA CONVENTIONDoesn’t this capture one of the inherent truths and ultimate “silver linings” that will likely spring up from the downturn of 2008 – 2009? In simple terms, we are personally and as leaders challenged to get better – to improve organizational performance by creating and leveraging improved individual performance. As individuals, we are challenged  to make some tough choices and take actions that may have been easier to avoid or ignore in the past.  The easy fixes haven’t worked. Giving employees an “E” for effort is simply not effective. Apathy is no way to retain good customers. Low performers are not being helped by allowing them to do and be less than they are capable of.

It’s 2009 and America is in the midst of a recession that has created an unemployment rate nearing double digits. We have two choices: Get bitter or get better. As leaders, we are called to dig deeper, tackle our fears, and do the hard work that others won’t or can’t do. To survive now, and thrive after the recession is over, the choice has essentially narrowed to this: Get better.

Recession or no recession, every day that we’re alive, we must improve, grow, advance. Bitterness and defeat is not a viable choice, is it?

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By now, it’s a foregone conclusion: Top performers should not be taken for granted or lumped into the mix, and then rewarded like the many “average” performers each organization has on the payroll roster. This truism applies even for continuing or enhancing cash compensation components, when many businesses have limited financial resources.

Therefore, savvy leaders are focusing on new and creative means of tweaking their total rewards to keep the super stars motivated to take their personal performance to new heights. In the last few posts, we’ve been offering up some ideas to jump-start your movement in this direction. Ideally, you’ll consider new and different low or no cost rewards, as well as modifications to your salary and incentive programs. But here’s a thought, as you’re trying to make sense of the total plan and its inherent out-of-pocket cost:

  • business_people302114133Don’t worry about the fact that you may be paying above market for your super stars. If they are truly delivering more for less, your payroll efficiency will be high. In other words if you have 4 or 5 higher-compensated stars doing the work of 7 or 8 average performers, it is still a win for the individual and the organization.

Under more normal business conditions, we tend to place great emphasis on market competitiveness and benchmarking jobs in the external world. In today’s environment, it may well make sense to worry less about that data, and think more about your total outlay for getting the job done. In other words, your increased dollars might be allocated to fewer people, but that’s okay as long as the results are there. In our brave new world, getting more with less is not just “allowable”, it makes good business sense.

What do you think? Is payroll efficiency a good way to measure your compensation effectiveness in a recession?

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reality-check-for-big-pharma-and-medicare-part-dResearch tells us consistently that top performers outperform average team members by a ratio of at least 3 or 4 to one. If you take a moment to do the math, the implications are simply staggering. How could a prudent leader allow his or her super stars to languish among the troops at a time when we all need to elicit the very best performance ever to stimulate a turn-around? Clearly, it is important to make a strong connection between performance and rewards, now more than ever.

In the last few posts, we have been discussing the importance of keepingtop performers motivated, engaged, and excited about helping you to achieve your business goals. So far, we have talked about focusing on total rewards, not just cash compensation, and customizing the rewards to the employee’s personal needs and circumstances. We have also started to focus on how you can begin allocating a larger percentage of the merit pool to your top performers. Here’s another thought on managing incentive compensation:

  • As your business allows you to pay short-term incentives, provide those making the most significant contributions with the most attractive incentive pay. In other words, review your plan, and make sure that you are paying for performance.

The point here is that we often forget about incentive plan design, and simply “let the old plan ride”, rather than taking the time and effort to review and update the program. All too often, we see organizations that are rewarding employees for efforts that are actually contrary to the current needs and goals of the organization. There’s no better time than now to revise your incentive compensation plan to ensure you are getting a solid return on investment. In other words, make sure that you are driving the right efforts and activities, and giving the lion’s share of the incentive compensation to the team members who are delivering the most significant results. It may sound like a no-brainer, but when times are tough, it’s sometimes hard to prioritize reviewing plan docs and revising incentive structures. Even so, it is well worth the effort.

What do you think? Do you need to brush the cobwebs off of your incentive plan and offer up more cash for the top tier?

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