Are Performance Reviews Dead?

Performance reviews are essential to increase employee engagement and staff performance, but they do need to be structured in a way that fosters engagement. How can an organisation achieve that?

Performance reviews can be a high stress situation for employees as sometimes pay, promotions and benefits can rely on the outcome. In high-stress situations we are rarely at our best and we may close down our conversational capabilities and be hesitant about speaking up if we don’t agree with feedback from a manager.

Annual performance reviews under these conditions are not sufficient to ensure true personal growth of an employee. Clear communication is needed from both parties in order for a review to be a catalyst for change in an employee’s behaviour.

The two most common mistakes made when conducting a performance review are:

1. Managerial attitude – The mistake managers often make is to see performance reviews purely as a process or a ‘tick the box’ exercise. To make performance reviews effective and valued, managers need to invest time in developing a relationship with the employee that is built on trust. To do this, managers need to be able to conduct effective workplace conversations by listening with interest and engaging in regular dialogue with staff. Managers need to wholeheartedly believe in both the relationship with the employee and the performance review outcomes in order for them to be effective.
2. Regularity – Annual performance reviews as a stand-alone method are not enough. Managers should provide feedback as often as is required, highlighting areas for improvement as development opportunities. It can be a quick two minute conversation to let an employee know they are doing a good job, or a scheduled meeting to discuss how an employee could do a task more efficiently the next time around. A once a year conversation is not enough to engage employees and make them feel valued.

Now that you know what’s wrong with performance reviews, what are some habits and tools to use to increase effectiveness?

Enhance conversation skills

There are a number of tips to keep in mind to increase conversation skills, such as:

• Set clear expectations
• Ensure there is agreement on those expectations
• Seek clarification as necessary
• Don’t avoid conflict, as it may then become a bigger problem later on
• Think before you speak
• Always remember to listen

Conversations are at the base of everything we do, but not every organisation sets expectations around effective conversations between managers and employees.

Relationship, relationship, relationship

The quality of the relationship is the strongest factor in the effectiveness of a performance review. A good relationship provides the foundation for giving feedback which empowers and motivates employees and accelerates the learning process.

Individualise reviews

No two employees are the same, and while you may have hired them for the same, or similar, roles, each person will have a different skill set which adds value to the organisation. This should be recognised and taken into account when assessing someone’s suitability to a role. Individual skill sets should be embraced by managers and discussed regularly. The performance review process is an opportunity to work through all factors to a point where both employee and manager are happy that all the variables have been taken into consideration.

Foster a learning environment

A workplace conducive to fostering learning outcomes is one where ideas from everyone – from the junior to the CEO – are respected and employees have access to resources and training to allow them to increase their capabilities. Leaders with strong coaching skills can aid the encouragement of a learning environment in the workplace, leading to greater engagement and staff motivation.

Performance reviews can increase positive business outcomes and support growth within an organisation if they are prepared strategically, keeping the above tips in mind.

Guest Author

Julie Parkinson, Director, The Institute of Executive Coaching. The Institute of Executive Coaching works with organisations to provide innovative leadership and coaching support to improve the performance of individuals, teams and organisations. Since 1999 the Institute has trained more than 2,500 coaches and become known as one of the region’s most respected executive coaching, coach training and leadership development organisations. All of the Institute’s services are designed on the key principles of the Institute’s mission to empower people to fulfil their potential and develop the leaders of tomorrow. http://www.iecoaching.com/

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Tips For Successful Performance Reviews

The following 10 tips are designed to help you prepare for your next performance review process.

Most managers will tell you that they don’t look forward to the annual performance review season. It’s not hard to see why. Reviews are time consuming, they can often take hours to prepare for and many of us have had little or no formal training in facilitating a performance management process, let alone delivering sensitive feedback in a constructive manner or conflict resolution.

Relax. With a little bit of preparation and a positive attitude, you’re certain to learn a great deal about your team and more importantly yourself.

The golden rules

Before we look at the 10 tips below, there are a few golden rules of management that overlay the entire performance review process and in fact successful management techniques in general.

1. Remember that your employees are probably just as anxious about the review process as you are.
2. Like you, your team members have feelings and may from time to time show emotions at work.
3. Treat your employees with the same respect and courtesy that you would expect from your manager.

1. Establish the right mind-set – If I asked you to rate your level of satisfaction with your company’s annual performance review process, how would it fare? If you’re like most managers in most organisations, it probably doesn’t rate highly on the list of tasks outlined on your position description.For your performance reviews to be a success, it is imperative that you go into the process well prepared and with a positive frame of mind. To do this, you need to take a step back and see the process for what it really is; an opportunity for you to spend time with your team so that you can uncover ways to improve their performance and satisfaction. Why is this important? Well, if your team members are happy, they’re more likely to perform better and less likely to leave your organisation. With happy, committed and more productive staff, your life as a manager can only get easier.

   We know for a fact that an employee’s manager is the number one reason for employees seeking alternative employment. With this in mind, the performance review process is your opportunity to learn more about your team; specifically what motivates them, what new challenges they’re looking for and how your needs (i.e. a stable, productive team) and theirs (i.e. personal development and career path) can align. Happy team members really do stay!

2. Remember, reviews are a two way street – As mentioned earlier, managers have typically viewed employee performance reviews as an opportunity to point out all the things an employee’s “stuffed up” over the previous 12 months. Warning: If this is your approach, it’s a sure fire way of increasing staff turnover and damaging employee morale and trust.Savvy organisations have long been using the performance review process to find out how their managers and indeed the organisation can lift its game. By allowing the employee to have their say about where they feel the company or manager could improve, they are also more likely to accept comments about their own performance gaps and areas they need to develop over the next 6 to 12 months.

   A small caution for all managers when hearing feedback about your own performance: sit back and listen to the team members comments – take it all on board. Do not jump down their throat in your defence as this will defeat the purpose. Instead, try to ask probing questions, “can you give me an example of that so I can better understand?’ ‘How do you think I/we could handle that better in the future?”. Acknowledge their comments, “‘I appreciate your comments on that.’ ‘I’m sorry you feel that way.'”

3. Take time out to prepare – A large percentage of managers I speak with only spend 10 minutes on average preparing for an employee performance review. Often this is done 5 or 10 minutes before their next review meeting.If you’re looking to get maximum value out of your review process you need to make time to prepare. Block out at least 1 hour in your calendar for every team member and if possible leave the office to do it; you need time to think about each team member without the normal day to day interruptions. Talk with your manager if you don’t think your current workload or schedule will allow for that to happen and ask for assistance in covering for you during this time.
4. Talk with other people before the review to source other opinions – Performance reviews have traditionally been very insular. That is, they have been based on the opinions of two people – the manager and the employee. If you don’t already, try talking with some other people such as your fellow managers, the employee’s peers and even their subordinates. Try to do this at various stages throughout the year so it doesn’t look like a last minute effort.We know that when feedback is obtained from multiple sources:
   • Employees are more likely to accept the feedback as accurate
   • Managers feel more comfortable discussing the perceptions of ‘many’

   If obtaining the thoughts of other managers, subordinates and peers is a little difficult in your organisation, there are a number of online performance review tools that can facilitate the collection of information from multiple sources. This is often referred to as 360 degree or multi rater feedback.

5. Prepare an agenda and communicate this to employees in advance – It is vital that you have an agenda for the review meeting: a road map that includes the things you intend to cover off. Having an agenda will convey to your team that you are treating the performance review process seriously and that there will be some structure to the conversation. It is particularly useful to provide each employee with the agenda several days before their review and that you encourage your team to add agenda items that they’d like to discuss. Understanding what is on the mind of your employees before the review meeting will help you to be better prepared.  No surprises.
6. Stay on track – It is possible that the review meeting may get a little heated. Conversation may also head in a direction that takes you out of your comfort zone or is non work-related. The minute this happens, excuse yourself [interrupt] and reiterate that you only have an hour now so whilst this issue is of obvious importance, it might be best to get back to the agenda given there are other important issues to get through. If required, the point of contention can be addressed in another forum at a later point in time.To minimise the likelihood of this occurring, make sure you keep the conversation work-related at all times and don’t ever criticize or blame team members directly.

   If you can’t reach consensus on a particular issue, always go back to the agenda and move on. The agenda is your friend; you just need to remember to refer back to it when required.

7. Start and finish with positive feedback – They say that as a rule of thumb, you should give 5 pieces of positive feedback for every 1 piece of negative or constructive feedback. Whilst this may be a little difficult to do in some cases; what it does indicate is that the overall theme or flavour of your review needs to be positive.Always start off by thanking the team member for their contribution over the past 6 or 12 months. Regardless of what you’re about to say, you have to remember that they have turned up for work more often than not over the past 365 days and that they have probably spent more time sitting at their workstation than they have with their family. Scary but true.

   Ensure that you finish the meeting off on a positive note. The following point about action items will help you to do this.

8. Create a list of action items – One of the main complaints employees have of the performance review processes is that nothing ever seems to change after the review.  In fact you can hear these sentiments echoing around the corridors of almost every organisation in the land, “I just spent an hour and half talking about the same stuff I talked about last year and nothing ever changes”. It’s easy to see how employees can be skeptical of the performance review process.Managers have historically left the performance review process and immediately become ‘busy’ again with their own day to day tasks.

   Like any serious business meeting, it is important that you take notes during the meeting. At the end of the meeting, recap the content of the meeting back to the employee; ask them whether you’ve missed or misunderstood anything. Spend 5 or 10 minutes at the end of the performance review meeting to brainstorm the top 5 key action items that can form the basis for that employee’s development plan over the next 6 to 12 months.

   Make sure you spend 5 minutes to brainstorm the top 2 action items for you as their manager to walk away with. This will demonstrate to the employee that you’re also serious about continual improvement and making their life at work better.

9. Have the team member agree on the action items and next steps – So you’ve created a list of action items. The next step in the process is to get the employee to agree and more importantly commit to the action items; that is to treat them seriously. Before leaving the meeting, seek verbal confirmation that the employee understands what was discussed and that they are comfortable with the proposed action items.The final piece of information to convey to the employee in the performance review meeting should be to advise them that you will be typing up notes from the discussion and booking in three half hour ‘catch ups’ over the next 12 weeks to ensure momentum is maintained and the next steps are on track. This is best done in a more relaxed environment; say at a coffee shop over a drink, breakfast or even lunch. Don’t underestimate the power of taking your team out of the office for a meal or a drink.
10. View this as the start of the process not the end – Many managers walk away from the performance review meeting and leave the conversation back in the meeting room. This is only the start of a 12 month program designed to improve the performance and satisfaction of your team.When you walk out of the review, schedule in at least 3 catch up sessions over the next 12 weeks. Once you have completed all of your performance reviews, block some time out of your diary once again to finish off the performance review process. This will include typing up the notes from each review and reviewing each action item to ensure you know what is expected of you as manager. Type up your action items as well and if you’re brave enough (and you’re not breaking confidentiality or trust to do so) stick them up on the wall in your office so that you are looking at them every day.

    As a rule of thumb, you should allow at least 30 minutes per employee for the post performance wrap up.

Guest Author:

Founded in 1999, Onetest’s goal is to provide a more effective and economical way to recruit talented people for your business.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com/subscribe/

Determining Your Pay DNA

More and more, employers are redefining and allocating their mix of rewards based on individual needs – like a stock portfolio of investments – and finding trends amongst workers as they begin to look at work-life balance, flex-time and other original ways to keep people happy and productive.

There’s much talk today circling diversity in the workplace, both in the make-up of workers and the delivery of rewards. Smart companies have also discovered that contributions of this new “multi” workforce – multi-cultural, multi-generational and multi-otherwise – positively impact the competitive advantage of the organisation.

However, companies will not benefit unless they keep these widely-varied groups happily rewarded and retained. This presents a totally new compensation challenge: When designing total rewards packages that work for each employee, regardless of segment, it is now necessary to understand multiple needs and desires from different workers, and then compensate them accordingly.

When it comes to packaging pay, employers today are clearly challenged. In the average company, there are as many different vehicles to reward employees as there are diverse segments within the employee population.

To get a clearer idea of how to assess what is important to your top talent, let’s take a look at the four distinct employee population segments and what each group values in the work experience – ground zero for understanding what drives their rewards needs.

1. Traditionalists (1909-1945), or Veterans, are part of the old school, command and control, brick and mortar chain of authority. And while they may be the “old guard” of a company, they are traditional in the best sense: They know that people, face-to-face communication and ideas are what make businesses run.They are willing to change and see new points of view, but it may not be easy. Hardworking and hierarchical, they have seen business change for decades – and adapted. They are “company” men and women.
2. Baby Boomers (1946-1964) traditionally have been motivated by money and career advancement. Yet ironically, as Boomers age, yet remain in the workforce, flexibility and work/life balance have become much more important than the need to make senior partner – a goal that may have driven them two decades earlier.Today, many Boomers’ complex lifestyles have shifted to include caring for both their children and aging parents, sometimes in the same household. They have already made a significant mark in the business world, and while they may not be quite ready to relinquish life at the top, they have come to understand the value of balance and life beyond the board room.
3. Among the most popular rewards requested today for the Generation X (1965-1978) crowd include better benefits: wellness, work-from-home arrangements, education reimbursements and, in some cases, child care in the office. For this independent group, it is critically important to set goals and then step away, letting them find their own solutions rather than “how things have always been done”.They are often unconcerned with long-term loyalty and have experienced significant downsizing during the dot.com bust, fostering a spirit of self-preservation, rather than survival of the company. They build strong relationships and serve as a bridge between older and younger groups.
4. On the other side of the coin, Millennials (1979-2000), or Generation Y, are looking for a high level of engagement on a team and employment-based rewards, a concept they hold as near and dear as their 80 GB iPods. They like instant gratification over long term investments of time and effort and want to contribute to society and have full and balanced lives.They want responsibility, the ability to make a direct impact and be rewarded accordingly. And they continually redefine their commitment to the workplace with the knowledge that they are able to “move around” significantly until they find the best employment fit – and they will.

Given the variety of priorities across these four groups, it is nearly impossible for a company to be all things to all people. Therefore, an important first step toward developing a competitive package is to examine organisational demographics.

Understanding what people in your organisation value will help guide decisions on setting compensation opportunities and benefit options. However, in looking at demographics, you must consider expectations and timing of future shifts of the makeup of your workforce. Planning for these shifts can help retain high-performers, as well as attract new talent.

In addition to demographic analysis, collecting information that can add an essential qualitative aspect to a rewards strategy is important, sourced from:

• employee opinion surveys,
• exit interviews,
• focus groups, and
• recruiting feedback.

Armed with this knowledge, competitive compensation and benefits packages should be designed to reflect the values held by employees.

Increasingly, professional and office employees are willing to put pay at risk for the opportunity of being rewarded for superior performance. Team-based awards and project-based bonuses are becoming more prevalent and attractive to lower level employees.

The difference in values across generations can be addressed by varying opportunities at different levels in the organisation. Comfortable base salaries can be offered at the executive level, whereas individual recognition through significant merit awards and variable pay may be more appropriate for middle managers. Similarly, deferred compensation or supplemental retirement contributions will help to keep key leaders engaged and satisfied up through their retirement years.

Individualising rewards

There is no longer a “one-size-fits-all” approach to total rewards. It is time to shift your view on how you promote and reward employees. The system presently utilised in most organisations often promotes and rewards seniority, rather than results.

If you look at most companies today, you find the executive leadership tends to come from the older group and more of the entry positions are filled by the youngest. This approach needs to be exploded and rebuilt, to allow for a more collaborative team ethic that taps into the collective wisdom that all four generations bring to the table.

Younger employees are not going to be patient and follow the path that Baby Boomers set of working up rungs of the corporate ladder. If they are not engaged quickly, they will simply move on. Gone is competitive advantage, and succession plans crumble.

Perhaps the most important considerations employers can incorporate into how they pay today, include a strict performance management assessment process, that is based on individual goals and metrics, unrelated to seniority and utilising the “3-F” appeal to each job: balancing;

1. family,
2. fun, and
3. flexibility.

In fact, an HR executive for one of the world’s largest Internet information portals recently revealed an experimental program for top employees to work in a “few months on, few months off” schedule, an extreme – and workable, in this case – solution to keep a talented team member happy.

Despite differences, all employees want some of the same elements when it comes to the work experience:

• the ability to be satisfied,
• valued,
• have clear objectives, and
• most importantly, directly report to a superior who empathises with a strong degree of work/life balance.

Using the same rewards vehicles – cash, equity, flex-time, incentives – employers can invest differently depending upon the needs of the individual.

Guest Author:

Jonamay Lambert and Adam Steinbrunner, Capital H Group.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com/subscribe/

Poor Performance – It’s Time To Bury The Walking Dead!

You can receive varying levels of service. The service at one company I dealt with recently was exemplary, whilst the other could best be described as zombie like. A large percentage had ‘died’ many years ago, the problem was no one told them to go home and ‘get buried!’. Zombie like service exists everywhere, maybe even in your organisation. Take charge, grab your shovel and bury them now!

What can you do about it?

I believe in organisations today there are four categories of people:

1. New Recruits
2. The Battle Scarred
3. Walking Zombies
4. Engaged Employees

Understanding where your people fit will enable you to support and encourage them, or maybe just get on with it and ‘bury’ them.

New Recruits

New Recruits are simply that, new people to your organisation, who are usually young or fresh to the workplace. They are keen to learn and be part of the team, they want to contribute to the success of their team and the organisation.

Not only that, they are keen to better themselves and look for opportunities to shine and stand out in the crowd. They do this by going the extra mile in service or productivity and generally are willing to tackle any challenge presented to them in the workplace.

These people are easy to nurture and with little effort, will maintain this happy and productive demeanour for as long as you support them in their role. Over time, these people will progress across to the Engaged Employee category.

The Battle Scarred

The Battle Scarred are people who have been attacked or hurt in some way, either by their boss or colleague(s) at work. Like someone in a battle, they will call out in their pain and will tell anyone who stops by to listen, to all their trouble and woes. Deep down these people still like their job and the organisation, it’s just that they have been attacked by someone and come off second best.

A typical example is when someone is overlooked for a promotion or a plum project role within the organisation. Sometimes their hurt is the result of their own action or inactions in the workplace.

These people can recover and be helped into the Engaged Employee sector by some recognition of their hurt or anger. A caring manager will take the time to listen to this person and coach them back to either New Recruit or Engaged Employee status. The Battle Scarred can recover quickly, if identified, and can be saved.

Walking Zombies

Walking Zombies are people who have been battle scarred and never recovered. Often they have been hurt and when they cry out for help and get no response, they get bitter. They employ “work to rule” campaigns, the problem being they make their own rules as part of this campaign. These people not only have a poor attitude, they do their best to share that attitude with others and even recruit others in the team to their cause.

They are like a viral infection, hard to cure yet often hang around for a long time before you can shake them off. These people continue to turn up for work even though they loath the experience. Amazingly, if these people are moved on, they often return with a new lease of life and report that they should have left the organisation ages ago.

Engaged Employees

Engaged Employees are the people who wake up on Monday mornings and say “I’m going to work today” and have a smile on their face. They find their job or career fulfilling, challenging and fun.

The reason these people love their work is because they usually have a worthwhile contribution to make and they are appreciated for their contribution. Their team leader or manager listens and hears their suggestions and takes the time to encourage and compliment them for their efforts.

Moving from Battled Scarred or Zombie to Engaged Employee

So you have some Battle Scarred or Walking Zombies in your team, what can you do with them? If they are Battle Scarred there is a good chance you can quickly resurrect them to New Recruit or even Engaged Employee status.

Take some time to catch them doing something good and praise them extensively for it. Sit down with them and talk about the vision for the team and reinforce where they fit in to the team and how their contribution is essential to the success of the team. Review their performance agreement and focus on achieving simple goals together.

Is it possible to change a Walking Zombie to an Engaged Employee? In my experience, the best treatment for these people is to ‘put them out of their misery’. Termination is always a good option for these people. You will be doing them a favour and may even give them a new lease of life to begin again in a new organisation.

I can hear some of you groaning already, “but it’s so hard to sack someone!”. Of course it takes some effort, but think about the effort and the cost of having a Walking Zombie on the team, spreading the virus of discontent and lethargy.

Guest Author:

Lindsay Adams, Teamocracy. There are many organisations that provide training, but Teamocracy is fully committed to providing more than just training. We are willing to consult with you to clarify what you are trying to achieve.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com/subscribe/

Incentive Compensation During Challenging Times – Boom Or Bust?

Some good news: During times like these, we have the unique opportunity to really determine – with a huge degree of certainty – the viability and efficacy of our incentive compensation plans.

Bottom-line (no pun intended), if you are seeing poor earnings or results today, but still paying out boatloads of money, then …

You’re doing it wrong!

Not that we cannot ever pay for effort versus results; sometimes we do just that, but at lower levels of the organisation, where “line of sight” to profitability is less than clear.

But folks, if you’re paying big (or even “any”) bonuses or incentives to managers, leaders or executives, and your company’s performance is in the tank – “Stop it!”

First, some definitions. I use specific words in compensation to mean specific things, and the two that are key to this article are Bonus and Incentive.

• Bonus – A Bonus is just that. Something more than expected. Something provided on top of that which I felt deserved or was entitled to. If I buy a single-scoop ice cream cone, and the young lass gives me two scoops, that’s a bonus. Not sure what I did to get it, not sure how to get it again, but plenty pleased that I received it now.

  Same thing with a Bonus in compensation. Happy to get it, certainly grateful, but no clue exactly why, or what I can do to ensure its payment again next time.

• Incentive – An Incentive, on the other hand, is the payment for an “if-then” statement. If you do this, then I’ll pay you that. If you exceed production by 10%, then I’ll pay you 5% of your annual salary. I know what I did to get it, and presumably know what to do to get it again.

  And Incentives are expected. We had an agreement, and I expect you to honour it with payment.

So, if we want to encourage behaviour with compensation, it’s clearly going to be through incentives. But we must use caution; it’s easy for the “law of unintended consequences” to creep into incentive efforts. So, what makes an appropriate, effective Incentive Plan?

First, it must reward correctly. In the compensation world, it’s not what you want, wish for, hope for, or manage to; it’s what you pay for. Many an incentive plan short-circuited when it was discovered it promoted behaviour we did not want, just to get to results we did.

Pay attention there.

Next, it must influence behaviour. By that I mean a couple of things:

1. It must be understandable, that is, I must realise what I can do to reach the incentive, and

2. It must be sufficient to warrant a behaviour change. Make it chump change if you want, but don’t expect your best and brightest to get on board. Realise that, if you get it right, it doesn’t really matter anyway, does it?

Finally, it must, must, must be kept simple. Complicated plans create two significant issues:

1. They become too onerous for people to comprehend. No understanding, no change in behaviour.

2. Employees believe that complicated plans are simply corporate subterfuge. And I agree. Plans do not need to be tomes like War and Peace. A page or two tops is all they should take. More than that, and you are clearly talking about why we won’t pay the incentive, instead of why we will.

Incentives can work. They can provide the behaviour changes you need in your employees today to drive results in the face of almost any economic conditions.

Done well, and you’re paying incentives from a bucket of money that you wouldn’t have had anyway, so it’s great! Done poorly, and you’re paying out money after losing money.

Let’s avoid that last one, shall we?

Guest Author:

Kevin Berchelmann, Triangle Performance. Described as a Human Capital Expert by The Harvard Business Press, Kevin Berchelmann helps new managers at private equity, Fortune 500 and small to medium sized businesses become top leaders that deliver results.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/

Finding Superstars Who Stay

It’s easier to retain employees who feel their talents are aligned with their work. Companies can do more to foster this process. People who are hired as a good fit from the beginning are more likely to stay in the long run.

Any executive knows the success of the business ultimately depends on the quality of employee talent. But finding the best talent is a challenge.

Too many companies waste time, energy and money on hiring strategies that don’t pay off in the long run. Some hiring managers make impulsive decisions, desperate to get a job filled quickly. Others wait too long, hoping to find the perfect candidate. By then, the company goals, needs, structure or environment may have changed.

Superstars are few and far between in organisations, typically less than 5% of the employee population. They’re small in number, but pull much weight in the business. Companies would like to find more stars and weed-out poor performers.

Think about it. How much time are you spending on helping weaker employees improve performance as opposed to helping stronger employees leverage success? How much time are you spending trying to fix a problem instead of building strength? The more superstars you have, the more you can focus on the leadership and business management issues you really need to or should address.

Where are the superstars hiding?

Some may be hidden in your own organisation just waiting to shine. Others you’ll need to attract from outside.

So where do you start? Organisations often instinctively focus on hiring tactics: running ads, posting openings, enlisting recruitment agencies, etc. But they’ve missed a critical step in the process: being very clear about the skills and capabilities required for a particular job.

“But we have a job description.” The job description typically outlines the job duties or responsibilities, but it doesn’t state the skills or attributes that are most critical to success.

In fact, if you were to gather a room full of people who hold the same job (e.g., sales representative or branch manager or customer service representative), they would have difficulty agreeing on the skill that is the most important to that particular job.

What is a superstar?

Some may believe that self accountability is most important, while others see decision-making, problem solving or interpersonal skills as most important. They can’t help imposing their own biases or experiences. Each person views the job through a different lens.

When determining what a “superstar” looks like in your business, don’t be limited by the people you currently employ. Too many organisations make the mistake of trying to set job performance standards based on the performance of their strongest internal people. Get ideas from other companies, even other industries.

Stretch your thinking. The ideal superstar may not resemble anyone in your business at the moment. Raise the bar. If you raise expectations, people will often rise to the occasion.

Be careful about making subjective decisions. Keep in mind a superstar in one job will look completely different from a superstar in another job. It’s tempting to select a candidate you like, but it’s more important to select a candidate based on what’s most important for the job.

Reaching agreement

Here is a suggested process to help you identify star potential:

• Determine key accountabilities for the job Not the “to-do” types of responsibilities, but the main outcomes the person in the job is expected to achieve. Do this as a first step.
• Project the needs of the business into the future Don’t ask, “What do we need right now?”. Ask, “What will the role look like 3-5 years from now?”.  Forward-thinking companies keep a more long-term focus.
• Establish a job benchmarkGain input from multiple stakeholders, not just those currently in the role. Consider involving supervisors for people in the job being benchmarked or other employees who interface with people in that job.
• Use assessment toolsQuick surveys and benchmarking assessment tools can aid the process. The benchmark should reflect the most important skills, behaviours and motivators required for the job.

The key is reaching agreement on these issues at the beginning and being able to speak about what you ultimately want for the position in a common language that everyone understands.

With a benchmark established, you can ask candidates to take an assessment which will help you measure their strengths and skills against it. Of course, this is only part of the process. You’ll also need to consider their background, experience and interview impression.

A common lens

When everyone sees the same picture, you’ll see star potential more clearly and you’ll make more confident hiring decisions. You’ll stop crossing your fingers hoping the new person will perform well. Instead you will predict success.

Being clear about the skills required for the job also helps employees focus their development efforts. You can help would-be stars develop specific skill sets for them to be most successful in a given position. They’ll see a potential path for themselves and engage in their own growth.

Guest Author:

Gayle Lantz, President of WorkMatters, has helped hundreds of companies and organisations just like yours improve performance and drive real results. She is also author of ‘Take the Bull by the Horns: The Busy Leader’s Action Guide to Growing Your Business…and Yourself’.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/

Substance Abuse And The Bottom Line

Uncovering any substance abuse problems in your workplace and dealing with them effectively will have a positive effect on staff productivity.

There are three main ways of uncovering a drug problem in the workplace. The first is to keep an eye on performance and output. Second, look out for absenteeism: not just a higher incidence, but for patterns such as frequent absences on Mondays, regularly coming to work late, seeming drowsy in the afternoons, or frequent visits to the bathroom. Third, look for changes in relationship patterns in a workgroup. Is there less co-operation, more arguments or a general air of friction?

If you discover a problem, the first thing is not to rush in and dismiss the person involved. Abuse problems in the workplace are often capable of being readily corrected. You can often achieve a boost in the individual’s productivity for a relatively small effort. You will also benefit from greater commitment from fellow workers (who generally are too well aware of the problem) when they see that you are tackling the issue in a supportive way.

The main point to keep in mind is that the issue needs to be tackled as a work performance issue and not as a substance abuse problem. You are not qualified to make medical or psychological assessments and, in some cases, what might seem obvious turns out not to be the case. Sometimes abuse problems are hiding other physical or emotional issues. Keeping the focus on work performance, maintaining privacy and confidentiality, and respecting the dignity of the individual are far more likely to lead to a positive outcome.

The following tips will help you when dealing with an employee whom you believe is suffering from substance abuse.

1. Keep an open mind. The employee’s problems may not be drug related. Don’t accuse the employee of using drugs or having a substance abuse problem. Focus on behaviour in the workplace that is of concern, not on your suspicions.
2. Be specific. Document all absenteeism and have specific examples of poor job performance in writing. State the problem behaviour in concrete terms and show how the behaviour affects co-workers and the company. Do not be put off by initial denials or get into arguments.
3. Define expectations. Describe specifically the expected changes in behaviour/job performance. Set out milestones and timeframes. Put it all in writing.
4. Emphasise the consequences. The consequences of expectations not being met should be made clear to the employee, again in writing.
5. Follow through. Monitor progress against the milestones and time frames you have set. This will allow the individual and other employees to see that you are serious and determined.
6. Remember the employer’s role. It is the employee’s responsibility to resolve the problem. Diagnosis and treatment is a job for a qualified professional, and referral to a counsellor may be advisable. The employer needs to focus on correcting poor performance on the job.

Dealing with substance abuse problems in these ways will generally lead to a win-win outcome – for your employee, your company and its bottom line.

Guest Author:

Denzil Griffiths is an experienced CEO, company director, consultant, speaker and author.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox every week. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/

Paying Incentives – Do You Need To?

If an incentive plan is designed correctly and implemented properly it can reinforce the key objectives of the business, support the culture you want and have a significant affect on the performance and profitability.

Let’s start off with some definitions.  

1. Firstly, any base salary review should have a significant focus on performance. If this is done properly the need for further incentives or “performance pay” is often removed.  
2. Secondly, part of the definition of bonus in the English Oxford Dictionary is “over and above that which is normally expected”. We see this as a discretionary payment which a business may give to employees. There is no real contractual obligation to do this. Employees may see this as “cream on the top”, but often are not sure what to do to make sure they get it again.  

We see incentives differently. This is a payment that will be made if certain actions are taken or targets achieved. It is a contractual obligation.  

While bonuses in some businesses, usually small, private companies, can work, there are some downsides. They are usually provided without clear targets being set and they often lead to expectations that they will continue regardless of performance. Sometimes they can make the “giver” feel good but have little impact on employee performance.  

On the other hand, they can build a strong culture within a business when the boss is seen to share some of the gains without any prior agreement to do so. Incentives are far more focused and for this article we will discuss a few guidelines to assist in implementing a plan that works.  

1. The first step is to decide what you are trying to achieve. If it is something employees aren’t doing, but should be, will a financial incentive change their behaviour? Is there some other reason why they are not doing what they should be? If you are clear on what you want them to do and think an incentive will help, try asking employees what they think about the idea.  
2. If you have decided that an incentive is the way forward – to either maintain good staff performance or encourage even further effort – then you need to make sure the measures you have in place align with your business objectives. Don’t set targets based on volume if your focus is on quality.   
3. Participants in an incentive program should have some control over what is being measured. It is not much good providing an incentive for sales if someone has no influence on sales at all. The targets must be challenging, otherwise there is not much point in having a plan, but achievable. Where the targets are never achieved people will lose interest. Where they happen too easily it will be expected each time without any extra effort being expended.  
4. The amount paid must be meaningful – too little won’t make the difference you want.  A percentage of salary is usually best to have a similar affect on each participant. Non-financial incentives such as trips may have a different appeal for individual employees.  

   It should encourage high performers to stay with the company. It should be rewarding, with the chance of it being even more rewarding in the future. Long-term incentive plans can be designed to achieve this more easily than short-term plans. Often a combination of these plans can achieve the desired result, as just a focus on short term profit can deter investment in longer term plans that will bring future benefits.  

5. Participants must be able to understand the measures and what they have to do to earn an incentive. It is no good having a complicated formula that no one understands. It should be clearly communicated in writing so there are no disagreements as to when it will be paid, how much and under what circumstances.  

There should be a review process at regular intervals to determine if the plan is delivering the results you need.  

If these guidelines are followed you stand a greater chance of success than if you approach setting targets and offering incentives in an ad-hoc way. You will also be able to avoid much of the friction that badly planned programs often cause.  

Guest Author:

Paul Phillips, Horizon Management Group.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox every week. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/

Giving Engaging Feedback

People are reluctant to give each other feedback in the workplace. On the one hand, some people hold back on giving constructive feedback as they worry about how the other person will respond. But on the other hand, inaction leaves staff performance problems going unaddressed and building over time.

Even when constructive feedback is given, it is not always done well. People are not giving enough positive feedback either – due to either not appreciating the importance of recognition or getting stuck in unnecessary paperwork.

Here are five keys you can use to get a better result from any staff feedback you give.

1. Feedback is always better received from those with whom we have a good relationship. So get to really know your co-workers and manager and let them get to know you. Chat with them, tease them, laugh with them, and be human. You are effectively placing deposits in the emotional bank account of that relationship which increases the likelihood of your feedback being well-received.
2. Feedback also needs to be occurring regularly, not just out-of-the blue. A yearly performance review is nowhere near good enough. Touch base with your workmates at least on a weekly basis, letting them know what you are happy about. Some staff with a strong need for connection or recognition need feedback even more frequently. When you are giving positive feedback, you have to mean what you say, of course. If people sense you are not being genuine they will simply feel patronized. Positive feedback also has to be specific and targeted towards those things the individual values about themselves. Positive feedback that is specific and meaningful to the person is always better received.
3. Constructive feedback is always easier to give when it is asked for. But you will find constructive comments are better received when they are outweighed by five times more positive feedback. This does not mean that when you give feedback there needs to be five compliments followed by one criticism.
4. Of course, constructive feedback needs to be given in ways seen as respectfulby the person receiving it. So although your intentions may be respectful, it is important to monitor how your feedback is being received and to adjust yourself for the individual. For most people, simply sounding respectful and speaking to them privately will be sufficient. For the sensitive types, you can allow them to save face by criticising yourself first – perhaps you weren’t clear in what you were expecting from them. If you are going to criticise, keep this to their behaviour and not them as a person. You can soften the blow by using the ‘kiss, kick, kiss’ approach, where you start and finish on a positive note.You can also say what you would prefer to see rather than what you dislike. There is a difference between saying, ‘You’re a self-centred, control-freak!’ and saying, ‘I really would like to have more say in how I do things.’ But you are allowed to think the former.
5. Feedback is also better received if you are open to feedback yourself. Sometimes feedback will be uninvited, given poorly, and you may be feeling defensive. But remind yourself that it is only feedback. You won’t die from it and it is good that any frustrations are coming out. Apologise and agree where you can before offering something for the future. For example, ‘I’m sorry if I came across that way. And I agree you do need to have some say in how you do your work. How would you like to do your work differently?’

If you are in management, make it easy for others to give you feedback. Staff surveys are one option, but you can also do so by routinely asking, ‘What can I do to better support you in your role?’ You can also let them know you know you are not perfect and will be OK if they give you constructive comments. You could say,‘I know I have been caught up in my paperwork and haven’t touched base with you much of late. What do you need from me so you can feel better about your work?’

So, that’s it. You can give engaging feedback by:

• Having a good relationship with that person
• Being frequent, genuine, and specific with your feedback
• Giving five times more positive feedback than constructive feedback overall
• Monitoring how the other person is responding and adjusting your approach
• Being open to feedback yourself

Guest Author:

Ken Warren is Australia’s leading speaker on Dealing with Demanding, Aggressive and Unmotivated People. With his engaging, interactive and positive approach, Ken has shown thousands how to turn difficult people around and bring out their best.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox every week. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/

How To Bridge The Skills Gap

The best way to combat the skills gap is through skills development. By carefully researching your options, you can make the choices that will result in higher satisfaction for individuals, increased effectiveness for teams and, most importantly, significant productivity gains for your organisation.

In the not-too-distant past, jobs could be neatly compartmentalised – each worker fit into a defined, if static, position. Those positions have been washed away in a tsunami of change that characterises the new global economy.

Employees are becoming less dependent on the company; the company and its employees are now interdependent. The situation has been compared to that of a sports team. The company is creating a new team and offering employees a try-out. How the team performs and its future depends now on the players as much as the leaders. The only real security employees have is the chance to work together to achieve their goals and create a future.

To “make the cut” on this team, individuals need the right skills. The elimination of so many middle management jobs means that senior management must surrender responsibility and independence to non-supervisory staff.

Tremendous demands are being placed upon workers who previously just had to concentrate on following the direction of a supervisor. Not everyone is equipped with the skills to take on the new responsibilities. The result is a skills gap that threatens the future of many companies.

The key to tackling the skills gap is to develop your company’s most valuable resources – its people.

1. Focus training on the areas that require skill development You must be able to identify a job-relevant skill deficiency for the individual or team. This often means measuring current skill levels, determining where skill gaps exist and prescribing the training solution.
2. Focus training on individuals and teams Teamwork is here to stay in today’s interdependent workplace. There’s no point in developing the skills of individuals if they are unable to apply these skills in a team situation.
3. Clearly state the objectives of training and relate it to competent job performance Research shows that learning improves when there are objectives stating what the employees will be able to do as a result of the training. Learners must know how their performance will be evaluated and what success will look like.
4. Measure the results of the training If you can’t see evidence of the effectiveness of the training, can you justify the investment? As the saying goes, if you can’t measure it, you can’t manage it. Make sure you can evaluate the effectiveness of training and the ongoing development of individuals and teams.

Guest Author:

Priority Management is an international training organisation which provides techniques, tools and training to enhance productivity. There are more than 100 offices worldwide, with branches in all capital cities in Australia.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your email inbox every week. REGISTER NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/