To Review Performance or Not to Review Performance

Let's start with a question: Which of these statements is true?

A) Only 45 percent of American workers said the feedback they receive in their performance reviews is fair and accurate. B) 67 percent said the feedback they receive during their performance appraisal is a surprise to them. C) Only 25 percent said their performance reviews include specific examples to support the feedback they receive. D) All of the above. E) None of the above.

The answer, unfortunately, is "D," according to a recent report.

It's statistics like these that are causing a small number of companies to scrap formal performance appraisals—between 1 and 10 percent no longer conduct conventional reviews.

The companies that still do semi-annual or annual reviews maintain that scheduled conversations between managers and employees enable them to formally recognize their employees' achievements, and let them point out weaknesses for employees to work on.

Managers frequently use reviews to offer career guidance and to build relationships. Eliminating performance evaluations, supporters say, might mean that "difficult" conversations between managers and employees never happen.

Failing to officially document problematic performance can pose problems if an employee is fired. But many employees say performance reviews make them nervous, and don't motivate them.

Managers need to know how to speak to the people they supervise.

Some companies agree and say they are glad that they no longer give reviews, according to a yet-to-be-published study which examined 17 firms that don't use formal performance appraisal systems. All 17 reported low turnover, high employee morale and strong relationships between managers and employees, among other benefits, according to the study by Scherwin, Coget, and Kirner.

Last year, Atlassian Inc., an Australian software company, ditched traditional performance reviews for its 450 employees. The publicly blogged experiment, which continues, asked managers and their subordinates to discuss performance and goals at weekly one-on-one meetings, with feedback going in both directions. The company says it's working.

Glenroy Inc., a Wisconsin packaging film manufacturer with 178 employees, hasn't given formal performance reviews for about 20 years. The company's informal system has put responsibility on workers to offer advice. The employees, meanwhile, are trained to give feedback effectively, and to receive it graciously. Meanwhile, an outside consultant determines pay, and workers are promoted if they and their supervisors think they're ready.

New experiments in employee evaluation doesn't always work, however. The University of Wisconsin Credit Union gave up performance reviews but returned to them because no other system had been put in place. Experts say it's important to do something if you don't conduct performance reviews.

The bottom line is employees need to know where they stand with their supervisors. When done right, formal performance reviews work well. If companies eliminate them for whatever reason, they need to put another effective strategy in place. Employees need to know where they stand; managers need to know how to speak to those they supervise. Companies do best when all employees feel that the evaluation process—whatever it is—is transparent.

  

TribeHR makes it easy to try new formats for your employee performance reviews. Get started today with a free, no-commitment 60-day trial.

 

By Mark Di Vincenzo. Mark is a journalist with 24 years of experience and a New York Times best-selling author.

 

Success of Employee Benefit Programs [infographic]

In order to recruit and retain the best team, you need to offer a compensation package that's competitive in your area and industry, and that meets the needs of your employees.

When it comes to benefits packages, many small businesses struggle to figure out what their employees expect, and how they can remain competitive against larger firms.

Apparently, small businesses are not alone in this struggle. A recent What's Working survey by global consulting firm Mercer shows that across the board, employees are less satisfied with their benefits than they were 5 years ago. 43% of US employees don't consider their benefits competitive, and about the same amount say they don't meet their needs. 

Given how important benefits packages are to overall employee satisfaction, the study shows that employers need to do more to keep their teams happy. How has your benefits offering changed in the past five years?

Check out this infographic for more survey results:

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Do I need to do formal staff evaluations?

By Mark Di Vincenzo. Mark Di Vincenzo is a journalist with 24 years of experience, and a New York Times best-selling author.

Are performance appraisals necessary?

Let’s say you own a small business with 10 or 15 employees, and you have great people skills. You do an excellent job of communicating with your employees, telling them what they’re doing well and what they can do better. And you tell them all this in the most professional and tactful way possible.

So the last thing you need to do is give your employees annual performance evaluations, right? Wrong.

Here are 8 good reasons to do formal staff evaluations:

1. You'll have a written record of your employees’ strengths and weaknesses. You need to know this, and so do they. Employees want to hear what they’re doing well, and they need to hear how to improve. Evaluations should include more facts than opinions, because your employees will respond more positively to them.
    
2. Your employees get an opportunity to tell you what they think they’re doing well, and what they can do better. Even if you disagree with them, you can gain insight into their thought processes, which can prove invaluable.
    
3. Formal evaluations show employees that you care about their performance and development. Many workplace studies show that employees prefer negative recognition to no recognition at all. They want to know that their supervisors are paying attention. A comprehensive and well-reasoned evaluation takes time, and workers will feel good knowing that you feel they're worth it.
    
4. Evaluations do more than just spell out what workers have done well and not so well. They actually motivate employees and encourage them to improve.
    
5. You, and your employees, get a chance to meet privately to discuss work issues that might not otherwise be addressed. During these one-on-one meetings, you can learn things about your business from the worker's viewpoint, as well as discover information about other employees.
    
6. Evaluations identify the need to offer training to employees. Employees who see their weaknesses on paper, particularly if they’re based on indisputable facts, are more likely to agree that they need help to do their jobs better.
    
7. They help you determine whether you’re making good hires. By analyzing data from multiple evaluations, you can figure out whether you’re hiring people who are getting the instruction and training they need before you hire them, or whether they're learning on the job. Your analysis may convince you to improve the way you recruit workers. 
    
8. Evaluations document reasons why employees should receive pay raises or promotions, and whether they should be demoted, or even fired. This written record, which should include very specific information, will be your best friend if a disgruntled former employee decides to sue your company for wrongful termination.

When evaluations are done properly, business owners and employees find them to be a positive and beneficial experience. And if they help your employees do better, they'll help strengthen your entire organization.

 

TribeHR's success recognition and performance appraisal system makes frequent staff evaluations easy for managers. Start building a culture of success with a free trial.

 

How to handle Employee Relations in Mid-Sized Businesses

How important are employee relations? One word: very.

By Angela Stringfellow. Angela is a social media strategist, and a public relations and marketing communications consultant.

Walk into a workplace. Quick: What's the vibe? Is the place thrumming? Are workers engaged, busy, upbeat? Or does the tension of the place suck the breath out of you as soon as you enter the lobby? 

Whether you're the CEO or the customer, a current employee or a potential one, you can tell within minutes whether you're walking into a hostile environment or a positive one.

If you're the CEO, you'd better make sure it's the latter. Good employee relations is as important an operating strategy as a good product or excellent marketing. If morale is bad and your employees are miserable, it will directly—and negatively—impact your success.

Leadership Buy-In

From the CEO to the shift manager, everyone needs to understand the importance of maintaining and developing positive employee relations. Whether it’s dealing with contractors, unionized employees, senior executives or the entry level workforce, company leaders must develop and follow a mission, vision, and values that promote a positive work environment. The culture of the company begins at the top. And the proverbial "it" always flows downhill.

Just like any 12-step program, company leaders need to be the first to admit there's a problem, then takes steps to remedy it. Front-line management must work with employees to understand their needs and create a plan of action. 

Transparency and Communication

Employee relations are built and maintained through efficient communications. Poor communications creates a destructive environment. Employees need to know they're being kept in the loop. Even if it’s as trivial as a change in the dress code to a more career-altering change in ownership, morale will diminish if secrets are kept and leadership can't be trusted.

Allow employees the opportunity to speak freely to upper management about questions or concerns they have about their positions, the company or even their colleagues and managers. Being able to express their needs without fear is essential in keeping an open forum with employees.

Also, employees need to feel as if their concerns are being addressed. If something requires action, get it done. Show your employees that they're valuable to the organization and that what they have to say is important.

Build teams

It doesn't really matter if you work by yourself, behind a desk or if you're the figurehead of the company: Teamwork is inevitable. Whether it’s a group of department heads making budgetary decisions or laborers working the floor, creating a sense of team develops accountability.

Employees are no longer responsible just for themselves, but for a group of others. Teams that work well together bond, develop dedicated and loyal relationships, and ultimately create positive environments.

Cultivate Positive Relationships

The old adage “if it ain't broke, don’t fix it” forgets a key component: maintenance. A beautifully running sports car still needs regular oil changes and service. The same holds true for successful and efficient work environments. 
Companies where employee morale is high and relationships are great have to work to maintain it.

Supporting the team is essential. Whether it’s financial incentives, tokens of gratitude or just simply a pat on the back, recognition for jobs done well is vital. More often than not, lack of recognition is a leading cause of morale breakdown and turnover.

Your employees make your company. Without them, almost nothing gets done. Your customers and clients can tell when something isn't right. That's why it's critical to promote and maintain positive relationships with every person who enters your establishment—starting with the people you pay.

 

TribeHR opens communication channels, helps promote teamwork, and builds positive relationships. See how TribeHR's affordable software can manage your human resources, faster and easier.

 

How to turn employee survey responses into action

The “inner-view,” or employee survey, is supposed to be a way for companies to gather voluntary data from their trusted staff. The problem many face is getting their employees to participate in the survey. Some feel their anonymity will be compromised, fearing retaliation from management for their comments. Others simply think the process is an exercise in futility, with HR gathering the information, but doing nothing with it.

Love them or hate them, there are times when these surveys need to be taken seriously, and actions need to be considered in order to maintain and sometimes re-establish harmony in the work place.

In many companies surveys are a yearly Q&A process, while in others they're only initiated when upper management sees an obvious breakdown in the systems in place, low morale, or poor direct employee leadership.

The results are in. Now what?

If you have any disgruntled or apathetic employees, they're inevitably going to take the opportunity to bash their supervisors and leadership if you give them a chance. Although it may be difficult to weed out these particular surveys, it's only an accumulation of negative reviews that should get your attention.

Anonymous feedback mechanisms can help you get a better understanding of what people actually think. But there's a place for open, identified feedback, too—especially if it's positive.

If there are a large number of negative reviews about the management or leadership within a particular department, it’s time to take action. Initiate random face-to-face interviews to get a better sampling of the culture within. 

Take action

If your data collection is consistent, and there's a problem within your organization, you must take action. Realign management, offer training courses for effective leadership and reestablish accountability for productivity. In some cases, reassignment or even termination may be warranted. Crucial to these actions and expectations is follow-up. Create a stretch goal and establish a time frame in which surveys or interviews will be held again, to see if changes have proven to be successful.

On the flip side, take time to celebrate the positive reviews regardless of whether they're from initial or follow-up surveys. Recognize those who effectively lead their employees. Give a pat on the back to the employees who day-in and day-out make the company a success. Find a way to do something special for the team, even if it’s as trivial as a pizza party. The gestures of goodwill will not go unnoticed.

What defines the culture of your company? Is it time to take a closer look at what the employees have to say? Remember, actions speak louder than words. By acting upon the results of the survey, you not only let the employees know they have a voice, but remind them that all of their contributions are valued.

 

TribeHR's social human resources software has features like kudos and get feedback, which let your organization's people give public feedback, and receive 100% private and anonymous feedback. Build a culture of success!

  

Common reasons for almost getting fired

If more of your work time is spent drinking whiskey and complaining about your ex than trying to be a better employee, you can probably expect your company's HR pro to intervene.

How will they do it? Will it actually work? TribeHR, maker of great HR software, explains how to write effective conduct warnings, and why some people can get away with anything.

Knowing common reasons for people to get fired lets you know what to watch out for, and what to avoid.

Print it off, memorize it, share it with your friends, or send it as a not-so-subtle hint to a not-so-awesome co-worker: However you want to use this graphic, we hope it's useful!

Walking Out – How to Run a Smooth Exit Interview

Employees and employers agree that exit interviews are incredibly useful (as illustrated above, three-quarters of executives say they "always" or "somewhat frequently" act on comments collected during exit interviews) and there are many tools available online to help you run an effective interview. Hopefully this summary gives you a good head-start on the process if you don't already have your interviews formalized.

If you like the sample questions we've included above, here they are again in a copy & paste-friendly format:
What are your primary reasons for leaving?

• Did anything trigger your decision to leave?

• What was most satisfying about your job? Least?

• What would you change about your job or improve to make the workplace better?

• Did your job duties turn out to be as you expected?

• Did you receive enough training and support to do your job effectively?

• Were you satisfied with this company's merit review process?

• Did you receive sufficient feedback about your performance between merit reviews?

• Did this company help you fulfill your career goals?

• Under what circumstances, if any, would you consider returning to the company?

Have any other tips or hints for exit interviews you'd like to share? Toss them into the comments below for everyone else :)

The little things matter

Jamie’s birthday was on May 26th. She tried to book the day off, but wasn’t able to because an important client would be visiting. Jamie was a little bit disappointed, but understood that the meeting couldn’t be rescheduled.

Instead, Jamie assumed that her boss and colleagues would celebrate her birthday with her at some point during the workday. The week before, she even mentioned that it was coming up. When lunch came around, no one had cupcakes. At the end of the day, no one offered to go for drinks. Everyone forgot.

In the following days and weeks, Jamie found her work environment increasingly intolerable. She found herself getting frustrated with her colleagues for insignificant things. She resented every instruction and request that came from her boss.

Within a month, Jamie had resigned from her job “in order to pursue other opportunities.”

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José just finished a big project, with mixed results. It was close to what had been envisioned, but wasn’t successful in the market. Through everything, José often came in to work early, and stayed past dinner, trying to get it all done. His colleague, whose similar project was massively successful thanks to an unexpected celebrity endorsement, was rewarded with a promotion.

José understood that his project didn’t work out as everyone expected. He didn’t expect a promotion. All he wanted was some recognition for the hours of hard work and unpaid overtime he put in.

No one ever said “thank you.” No one ever said “good job,” or “nice try.” No one even said “goodbye,” because instead of giving notice, José just never came back. He didn’t think anyone would care.

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Jeremy worked at the same company since its inception 20 years ago. When his 20th anniversary of service finally came up, no one said anything. No one even knew.

The company didn’t have a strategy for thanking employees for their long service, because until Jeremy, no one had ever been with them for that long.

Unlike Jamie and José, Jeremy didn’t quit. Instead, he just found himself being less and less productive. As a longstanding stalwart of the company, and the only link to its history and past, Jeremy knew no one would fire him. No one even knew how long he’d worked there.

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Moral of the story: The little things matter. How do you recognize employee achievements?

SHRM 2011 Conference Summary

The Society for Human Resource Management 2011 conference (SHRM 2011) in Las Vegas has come and gone. Did anyone learn anything?

Social networking sites (@TribeHR) and the blogosphere were flooded with comments and commentary about SHRM 2011. You could waste days reading through all the information.

Not to worry! I followed along and pulled out the wittiest, most original, most insightful, and most cynical posts. They’re all here, in one place, for your perusing pleasure.

Bad tastes in your mouth
Matthew Stollak (@akaBruno) doesn't like a presenting lawyer's perspective on social media.

Being young
About 4% of attendees were under the age of 30. Jessica Lee (@jessica_lee) has something to say about that.

 

Fitting in
According to Robin Schooling (@RobinSchooling), fitting in at a workplace is a lot like fitting in at a Vegas nightclub.

Getting punched in the face
Dawn Hrdlica-Burke (@dawnHRrocks) wants more energy and more authenticity. 

Missing Out
Charlie Judy (@HRFishbowl) has 10 good reasons why you shouldn't feel bad if you couldn't make it to SHRM 2011. (I feel much better, thank you.)

The New CEO
Kris Dunn (@kris_dunn) comments on the revelation that accountant Hank Jackson is the new CEO of SHRM.

Presenting
Laurie Ruettimann (@lruettimann) said "dick" during her presentation and five people walked out of the room.

Swag
Jessica Miller-Merrell (@blogging4jobs) on what she looks for in conference swag. TribeHR likes swag.

Vendors
Tim Sackett (@TimSackett) wishes someone would sell common sense. (Ours comes with a 15-day free trial, Tim!)

Mastering the element of surprise

It’s impossible to predict everything that can go wrong. Fortunately, new research on organizational behaviour in fast-paced work environments has revealed a set of strategies that can improve individual reactions and overall group performance.

In a new study published in the Academy of Management Journal, researchers from California and Utah used strategic interviews and direct observation to find similarities between the ways police SWAT teams and film production crews cope with surprises.

Breaking into a location, the SWAT team found more suspects than expected. In response, the lead officers changed their primary role from trying to reach the furthest corner of the location to covering areas and suspects as they advanced.

During a scene in which an actor was “slaughtered” and fell into a hot tub on the top floor of a mansion, the crew forgot to account for displacement and the tub overflowed. All the scenes set to be filmed that evening with the hot tub were rescheduled for the following day. The electricians shifted the power to the generators and they shot a different scene in the dry living room.

The SWAT team was about to use explosives to blow out a door. The lead officer checked the door handle, found it open, and the team switched to a “stealth entry” right away.

They found that having the ability to shift people between roles, shuffle the ordering of tasks in a project, and deviate from normal routines was key to successfully navigating unexpected changes.

Beth Bechky, the lead author and an associate professor of management at the University of California, Davis, is an expert on interactions in the workplace. She observed four different film projects, with a combined total of 310 staff and more than $100 million in financing, in addition to conducting a number of interviews and sifting through a mountain of prior research. The findings are significant because they offer a new framework and new language for talking about organizational and team structures.

Bechky and her co-author recommend three ways that innovative and entrepreneurial teams can promote "organizational bricolage"—a process of sharing knowledge and workflow expectations to cope with limited resources and continue effectively.

First, they should draft agreement. The SWAT team did this by jointly developing a rudimentary plan of action, which got everyone on the same page and allowed for some flexibility in execution.

Secondly, they should reinforce and elaborate task activities. Sharing knowledge between team members while supporting best practices and eliminating inefficiencies is key to success. At a movie set, the unit manager did this by explaining industry norms to a group of production assistants.

Finally, they should build cross-member expertise. Consistent and continual training programs, which make sure that everyone has a rudimentary understanding of one another’s skills and duties, allow for role flexibility and task efficiency.

While most of us don’t work in Hollywood or with automatic weaponry, we should still learn to improvise effectively. Proper human resource management means having a system and a team that’s able to cope with unexpected absences, malfunctioning technology, and new competitors.

Source: Bechky, B. & Okhuysen, G. (2011). "Expecting the unexpected? How SWAT officers and film crews handle surprises." Academy of Management Journal 54(2). 239–261.