From the category archives:

Performance Appraisal

Terry Lauter Comp

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

July 13, 2009 · 0 comments  by Terry Lauter Comp

in Compensation, Economy, Management, Performance Appraisal

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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Terry Lauter Comp

Seize the Moment!

April 15, 2009 · 0 comments  by Terry Lauter Comp

in Feedback, Performance Appraisal, Performance Feedback, Training

26239852

I remembered recently an interesting conversation with a colleague after a training session.  The discussion centered around a particular employee in a key position who was repeatedly demonstrating poor human relations skills in interactions with others internally, and even with external clients and vendors.  When I asked my friend what she did in the situation she was describing with her employee, I learned that she was waiting for the performance appraisal (coming up in a few months) to discuss her concern.  The truth was that she hadn’t given much thought to clearly identifying and defining the problem, much less figuring how to deliver the hard truth.  Fortunately, I was comfortable enough in our relationship to state the obvious:  Performance feedback is best provided as an ongoing dialogue (in the moment) between leaders and their staff members.  Waiting is essentially avoidance behavior, and is not helpful to the employee or the organization.  I asked my client to “seize the teachable moment”, as I’ve tried to do with my kids over the years. I let her know that she’d be doing herself and her staff member a big favor.  Assuming that her motives are helping the individual to grow and improve, while assuring his future success in the organization, it really is a compliment to the employee, and my friend should interpret her own actions in that light.  She is simply doing the hard work of helping the individual live up to the full potential that she sees in him.

Giving effective feedback is a skill that can be learned, and constantly refined and strengthened.  Constructive feedback is certainly not the only kind employees need in order to do their best work.  Here’s our advice:  Cultivate the ability to give positive and constructive feedback in a way that is helpful and clear, and lets the individual know that you care about their growth and development.  Ultimately, your team members will be grateful for the courtesy of your honest communication.

 

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Terry Lauter Comp

The “What” and the “How”

March 26, 2009

A cartoon I saw recently describes performance appraisals as the event that “causes managers to lose sleep the night before, and employees to stay up the night after”. I think we’d all agree that appraisals aren’t wildly popular with anyone, but often we’ve found the problem to be in the “how” and not the [...]


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