What about after Performance Evaluation?

Our colleagues over at HR-Meter are constantly asked questions like "but what are we supposed to do with the results?" and "where do we go from here?". These questions, of course, refer to performance evaluations, 360 degree feedback's and the like. These forms of feedback give employees a tremendous amount of information about how they have "performed" in the past, but organizations often find it difficult to translate that information into concrete road maps for future performance. It's certainly a tricky task and, unfortunately, it's often one that cannot be undertaken so "late in the game". What does that mean?

By "late in the game", I mean something like "after the results are in" or "once the reviews are complete". If you've made it to the "late in the game" stage and then you're asking "where do we go from here?", it's to late.

The road map for future performance must be defined before the reviews even get started. We encourage organizations to create performance evaluation processes with future performance in mind. Measure things that can be developed, improved or avoided. It sounds simple, but it requires thought and foresight. For example, when your employee has his or her review, the take aways should always be a list of strengths and a list of areas for development. Future reviews need to focus on measuring the level of improvement in those areas for development as well as checks to ensure that strengths have not be sacrificed in the process.

The real bottom line is: a performance review is not just something we do once a year because that's how it is. Unfortunately, many people I talk to describe performance reviews as just that.

End of the Year Employee Satisfaction and Engagement Surveys

When was the last time your company took a good hard look at itself? And I don't mean the books?

Looking for a great gift to give your employees this holiday season? How about a year end soap box? Some of the best consulting advice can come from in house. Our research has shown that organizations are significantly more likely to have a high acceptance of changes to day-to-day operations if those changes are the result of suggestions coming from employees.

Simply by implementing a year end employee engagement and climate survey can immediately improve:

• Employee satisfaction
• Employee confidence
• Employee performance and productivity
• Employee - Managerial interaction
• Over all morale

Give your employees a voice this holiday season.

The reshaping of feminine leadership in a mixed gender environment

Continuing on the theme dedicated to Team Building, team Effectiveness and GroupThink we are highlighting a thought-provoking research conducted by the Bristol Business School at the University of West England that focused on the different leadership roles of men and women within teams. Specifically, the research question was ‘To what extent is leadership as a sense-making process impacted by gender? Using a pragmatic approach involving the use of induction, discovery of patterns, deduction and testing of theories and hypotheses, Grisoni and Beeby compared the interactions and results of teams comprised either by men alone, women alone or mixed genders.

The research indicated that the essential conservatism originally associated with male professionals permeated all three teams indicating that men and women adopted teamworking strategies for sense-making that contained many similarities. The authors used “meetings” as part of their study because the modern business trend is to utilize team-based leadership that involves more meetings with increasingly growing numbers of women in senior positions.

The essence of the study can be distilled to the following: 
The gendered nature of meetings could be a barrier to the expression of feminine forms of leadership which typically entail ‘managing’, ‘facilitating’, and ‘influencing’ and would instead shape their leadership toward a more mixed gender scheme of ‘developing’, ‘nurturing’ and ‘managing’ attributes.

Questions to ponder:

• Have you experienced a difference in single gender meetings vs. mixed gender meetings? 
• Do you find that feminine leadership is reshaped by the mixed gender business environment?
• How is male leadership affected by the increased number of senior female leaders? 
• Are the male professionals morphing their leadership styles as well? 
• Is this a desirable outcome for the teams in your organization?

Grisoni, Louise, and Mick Beeby. "Leadership, Gender and Sense-making." Gender, Work & Organization 14.3 (2007): 191-209.

Performance or Learning Orientated Employees: Who Is Best For An Organization?

A joint study conducted by the Universities of Houston, Georgia, and Connecticut, confirmed that when employees face changes the performance typically is diminished until the new work habits are assimilated. However, those motivated by “performance” view a positive evaluation of their performance by others higher than the actual learning process vs. those who embrace the idea that “learning” would improve their abilities in the long run. The article is provocative in that it suggests that employees motivated by learning rather than performance are more desirable but it also offers an interesting strategy for bringing around those who are purely performance oriented.


Do you know what motivates the employees and managers around you?

How would you introduce changes in your organization if your employees were mostly performance-motivated?

Ahearne, M., Lam, S. K., Mathieu, J. E., & Bolander, W., “Why are some salespeople better at adapting to organizational change?,” Journal of Marketing, 74 (May 2010): 65–79

Creating a culture of employee “ownership mentality”: Part II

Last month we took a general look at measures to establish that all-important culture of employee “ownership mentality;” one that once created can help impel a business to greater success.

Now, let’s see how compensation structure impacts that desired ownership mentality, beginning with short-term incentives.

Essentially, short-term incentives are performance measured and typically paid out in 12 months or less. These incentives can play a large role in engendering an employee’s sense of “investment” in an organization if they are based on the achievement of certain departmental goals and/or hitting a profitability threshold.

Most companies utilizing short-term incentive components as part of an overall “ownership” approach will “weight” the incentive based upon a tier system. As such, tiers are established for different classes of employees in conjunction with their impact on various performance measures.

For example, incentive for Tier 1 or top level management is usually based on company performance, not department or individual contribution. Incentives for Tier 3 or 4 employees, however, are heavily weighted on team and individual performance, and hardly at all on overall company achievement. The objective with both tiers is to create focus and tie incentives to specific goals that the employee is best positioned to help meet – in other words, allowing an employee to feel engaged and invested in the workplace, which translates into that coveted ownership mentality.

Long-term incentives, which can include shares of stock, stock options, phantom stock, a profit pool or incentive deferred compensation, are designed for top talent retention.

Key among the intentions of long-term incentives is to create a focus on attaining the company’s long term financial goals and engender a sense of “investment” in those goals.

Long-term incentives provide a substantive reason for top talent to both join and stay with a company. Attractive inducements can “reel them in” and likewise maintain star employees.

Sustained growth and hitting those important goal milestones occurs when key employees are motivated to focus on performance, leading to execution and a pattern of continued achievement – in the long run, a win-win for both the company and its employees.

About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation. Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

Creating a Culture That Encourages Employees to Think Like Owners: Part 1

January Installment by Jim Moniz:

Success now and in the future – let’s face it; that’s the ultimate goal of any business owner. But to achieve that vision of a “bigger and better” organization, you first have to identify a few key elements for success and then make sure that your staff possesses the appropriate ownership mentality to assist in both your short and long term objectives.

Fundamental to any growth strategy are three factors: fulfilling your original business plan (mission, values and company vision); the emergence of sustainable growth patterns (revenue development); and a suitable return in capital for company shareholders.

In order to best achieve those elements for growth, employees must be on board – and the most direct line to meet that aim is by fostering a culture of employee ownership. In other words, employees have to draw the same conclusions as you about what’s important, but for that to occur, ownership mentality must be personalized.

Most employees recognize the bottom line to a company’s success is well…the bottom line; but it’s also vital that they understand how their contribution will help to make that happen. Without this important engagement on the part of employees, their focus may be off center.

That engagement occurs when an employee not only appreciates the unique talents he brings to the organization but recognizes that those skills are also appreciated by management. And that is accomplished by utilizing and amplifying those special talents to allow the employee to find meaning in his work and create a framework for both his and the company’s success. The coveted ownership mentality occurs when the employee sees that connection between his and the company’s goals.

It all boils down to employees embracing the fundamental elements of understanding, importance, contribution and connection.

But a few well-placed “atta boys” aren’t going to fully engender ownership mentality. Motivation comes in many forms, including a regular and attainable incentive program designed not as an employee entitlement, but as a means to create engagement and ownership.

A sound incentive plan – which includes both short and long term motivations – always connects the dots between performance and results. It can best be described as a conditional payment in exchange for meeting specific performance standards.

Next month we’ll break down the differences between short and long term incentives and the role each plays in creating and maintaining that all important ownership mentality.


About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation.

Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

I’m paying out $1 million in bonuses for my top five people – what’s in it for me?

October Benefits Installment by Jim Moniz:

When Jack Welsh left GE, he received – and by the way continues to enjoy – a retirement benefit valued at about $ million a year, plus perks. Lots of press attention and much controversy followed, but the reality is Welch’s package amounted to less than 3/100s of 1% of the shareholder value that was created while he was at GE. In fact, his total compensation during Welch’s entire time at the company was less than 2/10ths of 1% of the value created.

OK so what’s my point? The Welch example illustrates a fundamental premise in examining the value of compensation. If you juxtapose Welch’s compensation arrangement with GE’s results during his tenure there, it hardly seems exorbitant…that’s because his “rewards” are being evaluated in the context of the bottom line. While the numbers may not be as dramatic in your business, the same premise and principles still apply. Compensation should drive and be tied to results that are quantifiable and measurable.

Here’s the big question – what are you getting right now for what you’re paying out? You’re getting the current result, whatever that may be. But if the results you achieve this year are not measurably different than what you had last year, what are you going to do next year to drive a different performance level? And how will pay differ in regards to these changes? Growth implies different results and by extension the strategies you’ve used to get current results can’t be the same in the future if a different result is desired or expected. Because compensation is one of the strategic tools in a business’ arsenal to affect change, companies looking to develop different performance results can’t expect to achieve forward motion if their rewards programs don’t match up to their goals.

Let’s break it down a little. If your company sets its target on growing net income by 20% per year over the next three years, you need to ask yourself a few important questions. What part of our compensation and rewards plan communicates that goal to employees? If we achieve or exceed that number how much are we willing to share? Who will get their fair share and then some if we meet our financial targets? To what extent will key employees’ participation fuel this desired growth? In other words, what comes first – growth or employees that are motivated by incentives to create growth?

For growth to occur sustained performance must be achieved…and since these results are largely a function of your key employees, compensation becomes a focus. As a business owner you have to determine the right mix of compensation components. These elements should include a strategic mix of core benefits, executive benefits, qualified retirement plans, supplemental retirement plans, salary, short-term incentives, long-term incentives and long-term equity incentives.

Ultimately the proverbial “rubber meets the road” when a rewards plan prompts employees to rise to a higher level of performance. For rewards to be effective they have to create increased focus on the part of participating employees – this focus is a direct result not only of financial reward, but also of a positive work environment and the path that you, as company owner, have drawn for their personal and professional development. Remember, money may be motivating, but so is an atmosphere where a culture of confidence exists.

At the end of the day, compensation can only do its part in changing results within an organization if the model and the compensation plan are understood and valued, results are achievable, and if employees are committed and feel a sense of ownership.

Results must also be concrete and measurable and communicated regularly. If these elements fall into place you will know that you’re paying your key people appropriately and you will also know what you’re getting in return.

About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation.

Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

Performance Compass (Beta)

We don't usually do this, but today HR-Worldview would like to direct your attention to a useful new tool designed by HR-Meter that is still in Beta.

HR-Meter is looking for folks to Beta test this tool. This basically means "use the tool for a month and give HR-Meter feedback on it".

The tool is called the Performance Compass. Check out this little video HR-Meter sent over.

You can also view the video here.

HR-Meter has asked that we don't give out any more information than this.

So, if you are interested in participating in the Beta of this tool, click the link below to sign up and HR-Meter will give you more information.

Sign up for more information & to Beta Test Performance Compass

The New First Class Compromise

When companies cut budgets, a typical target is anything considered to be a frivolous gadget. An unneeded gizmo. There certainly are a lot of frivolous gadgets and unneeded gizmos. It all makes perfect sense.

But then I feel like I'm in the Twilight Zone when I talk to clients who have cut their annual or bi-annual on-line performance appraisals and assessments when I clearly remember them saying to me in the past that they don't know how their team, their department, even their business as a whole could continue to function and grow without them. 

They used to say stuff like “We were such a dysfunctional, uncooperative bunch.” 

So when the tools that 'functionalized' the dysfunctional and got the 'uncooperative' to cooperate are put to pasture, I always want to say “My word! Is it that bad? I hope you didn't have to get rid of the Tassimo coffee maker too!” But, inevitably, I get my head on straight and get with it again.

Here is what we need to do. 

If your team, department, or company as a whole is a dysfunctional, uncooperative bunch but you can't seem to find room in the budget for the tools and support that you need to 'fix it' then either you're company is not taking the 'human factor' seriously enough or providers are not taking your budgets seriously enough. It's probably a little bit of both.

They say that in money, a perceived need is as real a need as a real need. I don't know if they actually say that, but I think it's true. We were going in this direction anyway, and it is simply the case that the state of the economy has accelerated the HR market's need for easy to use (which is time efficient) and cost-effective (which is cash efficient) technology solutions. 

HR needs to start making the case that these tools are as necessary a part of the frictionless functioning of a business as the workstations, the network bandwidth and the Tassimo. Uncooperative people don't just start cooperating especially when they are afraid that their jobs are on the line. No company would sell all of their workstations and replace them with typewriters to save money. It would end up being more expensive... that's why we have computers. The best question to ask is, “How is that any different than getting rid of the other tool that time and again has provided stability and openness to the workforce?” 

At the same time, HR solutions providers need to start innovating and moving away from the old model that companies don't see room for in their budgets. Solutions providers cannot just weather the storm and when the skies clear up approach their clients with the same garbage that got tossed at the first sign of trouble. That is about as backward as selling off workstations for typewriters. HR solutions providers need to learn that HR is now going to want more control over implementation and management of these systems. It's a particular brand of protectionism. HR solutions providers need to have a whole new game that's easy to learn. The products need to be better than they were before and we can actually define what we mean by "better": easy to integrate into company culture, easy for the client to learn, easy to use, quick to deploy, stable, error free. Of course, some HR solutions providers will be quick to say “oh but our systems have always been like that”. But, if that were true then we wouldn't be having this conversation.  

How do you conduct 360 Feedback Follow-up? (Part 2 of 2)

As we pointed out earlier, a 360 Degree Feedback project that lacks a consistent and structured follow-up is going to lack any real and meaningful value not only for the employees who participate in it but for the company as a whole. In short, failure to properly follow-up on a 360 Degree Feedback project results in lost opportunity and wasted money.

So, as promised, we're going to point out a few steps that absolutely must be taken as a follow through or follow-up to a 360 Degree Feedback project.

Step 1) Every focus person must sit down with his or her manager to discuss the outcome of the project. During this discussion, the focus person and his or her manager need to come to agreement on a number of areas that that need to be improved upon. These areas should be easily identifiable if the 360 report is any good.

Step 2) The focus person and his or her manager must work out a "to-do-list". This should be a list of things the focus person can start to concentrate on on a daily basis that will result in improvement in those broader areas worked out in Step 1. This is the step that is almost always ignored which results in negligible improvement for the focus person.

Step 3) The employer need to work out a system to help each focus person track his or her completion of the "to-do-list". If you are a manager, this could mean routinely e-mailing the focus person to let them know that you have noticed that the focus person has been doing a great job on some items of their to-do-list and a poor job on others. Or, the employer could use a tool like HR-Meter's advanced "performance tracker system" which allows a focus person's rater group to continue to comment on his or her progress between 360 Degree Feedback projects. Step 3 keeps each focus person engaged and on top of their own improvement between 360's. This allows you to spread out the time between 360 Degree Feedback projects, save money and improve efficiency.

Step 4) Knowing that between 360 Degree Feedback projects steps have been taken to capitalize on the information gathered in the previous project, each subsequent 360 Degree Feedback project should be adapted to reflect each stage in the company's performance evolution. You should not be doing identical 360's time and time again.

If you implement these 4 simple steps after your next 360 Degree Feedback project, you will have added considerable value and meaning to your project and will have saved yourself and your company time and money.

Event Invitation - 360 Degree Feedback

On February 20th, we will be hosting a live web-event where you will learn how to cut your annual performance review, 360 Degree Feedback and coaching costs by more than 50%. Christina Dietzsch-Kley, President and CEO of HR-Meter LLC will take you through the "do's and don'ts" of modern employee evaluations and unveil an exciting new, real-time, alternative to the norm.

This should be a highly informative webinar for anyone who has been considering implementing some kind of multi-rater feedback project as well as those who currently use 360 Degree Feedback projects on a regular basis.

New Tricks

It's a cooling economy... sort of. It would be a stretch (though it's made everyday) to claim economic hardship across every industry. With these “troubled times” comes a series of booms and busts.

HR Vendors are booming. Why?

Employees are expensive (everybody knows that). But it is estimated that a new hire can cost around $5,000 in time and money spent. That's quite a bit of money and a lot of companies have decided that, given the way things look (with the fed estimating a stabilization of the markets sometime in the middle of 2009) they no longer want to throw that kind of cash around on straight gambles.

So, the old selection methods learn new tricks. Metrics and quantifiable analysis made possible by on-line reference checking systems (external 360's and the like) shave the “time spent” column down a hair while revamped internal performance assessments, employee and organizational engagement / climate assessments help manage, benchmark and improve existing “human capital investments”.

Firms are starting to see these methods not as new-fangled “techie” approaches, but as smart, cost conscious and effective reinvestments in their capital assets. The picture doesn't even have to look that sterile. When employers are viewed as caring about their employees, they are viewed as caring about their business just like when they take time to wash the windows and cut the grass, do the books, and send out their PR announcements.

How does your company reduce turnover, improve employee engagement, streamline performance reviews, etc.? To put it another way, what are your “new tricks”?

WPM Software Industry Worth $2.6 Billion?

By 2012, the workforce-performance-management software services industry will reach nearly $2.6 billion according to an IDC report entitled Worldwide Workforce Performance Management Forecast 2008-2012.

We’ve been hearing a lot lately about “economic downturn”, “slowdowns”, and the unemployment rate. At the same time, the IDC is forecasting somewhat rapid growth for software services that provide workforce-performance-management solutions.

This can be explained easily enough: HR executives are hedging their bets that a software solution is a cheaper solution than a human solution (i.e. a consultant or a new hire), and (working in the workforce-performance-management software services industry) I am inclined to agree.

Lisa Rowan, the IDC’s HR and Talent-management services program director says that “Despite a potential business downturn, employee retention will continue to be a key concern for HR executives in 2008, given the very real demographic shifts occurring in the workforce” and that “[e]mployers will be seeking ways to both automate and integrate talent functions, with the goal of identifying and retaining top performers. Performance management is a linchpin in this process”.

On a small scale, might such services (as implemented in, say, a paper company) be a first step in the direction of better fostering a relationship between Connectivity and Productivity?