From the category archives:

Benefits

Throw out performance reviews?

May 7, 2010 · 1 comment by Terry Lauter Comp

in Benefits, Business Strategies, Employee Communication, Employee Surveys, Feedback, Leadership, Organizational Growth, Performance Appraisal, Performance Development, Performance Feedback

Performance appraisals have taken another hit in the media recently.

Get rid of performance reviews, author says (http://tiny.cc/rhc2r)
Are performance reviews a waste of time? (http://tiny.cc/9z4la)
Yes, Everyone Really Does Hate Performance Reviews (http://tiny.cc/sa77l)

These articles argue that performance appraisals are: pretentious, fraudulent, ill-advised, intimidating, send the wrong message and so on.

So should we throw the baby out with the bathwater? Should the entire process be overthrown?

But wait! Some companies are actually enjoying a great deal of success with their appraisal programs. In fact, a recent American Management Association study of 437 publicly traded companies found that 205 of these had transitioned to more progressive types of performance “development” vs. the standard appraisal process. Those that had, demonstrated the following results:

Increased profits, better cash flows, stronger stock market performance, and higher stock value
Significant gains in financial performance and productivity

Significant sales growth per employee
Lower real growth in numbers of employees

Here’s the key: Providing valid and valuable feedback on performance is a process, not an event. In fact, performance reviews are often despised and vilified not because they are done, but because of the way in which they are accomplished by managers.

Too often, the individuals are poorly trained and the system itself is both ineffective and inefficient. But open and honest feedback on how an individual is doing in their job is something that most individuals actually appreciate having.

Our recommendation would be to adopt a simple, practical tool for measuring performance objectively; and train managers thoroughly, not just on the appraisal system, but on the process of providing ongoing communication and feedback.

We also counsel our clients on teaching individual employees how to receive feedback. This type of preparation is very effective, but can only accomplish the ultimate goal when a genuine culture of trust exists in the work environment.

To read on about “Getting More From Your Appraisal Program” visit: http://www.ltcperformance.com/Getting-Appr-Program.html.

{ 1 comment }

Keep the Hot Ones

February 15, 2010 · 0 comments by Larry Comp

in Benefits, Business Strategies, Compensation, Economy, Employee Communication, Management, Organizational Growth, Uncategorized

Whether you see it or not, your organization may be in danger of losing some of its top performers.

So Brandon has been with you six years and his performance ranks among the best. Because of this, you have been able to offer Brandon above average annual salary increases. He also likes working for you. toptalent

However, when the thriving competition down the block offers Brandon a significant salary increase, coupled with an attractive bonus – he’s leaving you.

More and more top performers are realizing that, to “get ahead,” they may have to leave their current employer.

We know salary increase budgets are not what they used to be. Experts predict 2010 salary budgets to be in the 2-3% range.

But can you afford to lose the “hot” ones? It’s time to identify those people that you can’t live without and give them a good enough – scratch that – a WORTHWHILE reason to stay.

Here are some suggestions:

1. Identify your top performers and let them know how much their efforts are appreciated. Also consider if any of their salaries are in need of adjustment

2. Consider offering “spot” awards, as appropriate, for superior individual contributions

money_manffcd 3. Identify those employees who possess critical skills you cannot live without. Consider the prudent use of a “Stay” bonus where such an incentive may be warranted.

4. Consider including your key long-term strategic players in a Long-Term Incentive Plan (LTIP). Incorporate a vesting schedule as an incentive to stick around long-term.

Don’t wait until it’s too late to ask why your top employees want to jump ship.

{ 0 comments }

In a Recession: Recognize & Retain Your Star Performers, Part IV

July 10, 2009

Research 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 [...]

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In a Recession: Recognize & Retain Your Star Performers, Part III

July 8, 2009

As the economy continues to slowly churn, many organizations have made their cuts, and are now turning their attention to the survivors. While these folks may be glad to have a job, some of the star performers may be waiting for the turn-around to make their get-away. If they haven’t been recognized for their extra [...]

In a Recession: Recognize & Retain Your Star Performers, Part II

July 6, 2009

Last post, we discussed the fact that “pay for performance” or “rewards for results” is still a myth in many segments of corporate America today. While most companies have a vital few who are achieving most of the goals, we are realistically not recognizing and rewarding these individuals in a way that will ensure their [...]

Are Your Benefits Still Beneficial?

May 25, 2009

The recession has taken its toll on many components of employers’ total rewards packages in recent months. While some of our client organizations have implemented minor benefit tweaks, others have implemented hefty increases in employee contributions for benefits and cancelled 401(k) matching. There is no one simple solution or pat answer, to be sure. But [...]

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Benefits

Throw out performance reviews?

Keep the Hot Ones

In a Recession: Recognize & Retain Your Star Performers, Part IV

In a Recession: Recognize & Retain Your Star Performers, Part III

In a Recession: Recognize & Retain Your Star Performers, Part II

Are Your Benefits Still Beneficial?

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