Author Archive

Utilize Employee Referrals to Hire Top Talent

Thursday, March 23rd, 2017

If one of your top sources for hiring isn’t from employee referrals, then you are missing out on an incredible source of quality hires.

When your business is ready to hire a new employee, where do you typically look first? If you’re like many smaller companies, you may start by asking current employees for referrals. Hiring from the networks of your current team has always seemed like a good idea. Recent research now shows that it’s actually the most effective way to find a match for your company.

  1. Leadership IQ 2012 Global Talent Management Survey found that employee referrals were the most effective recruiting channel for front-line performers.
  2. According to recent Glassdoor research report, “Why Interview Sources Matter in Hiring,” employee referrals boost the odds of a successful job match by a statistically significant 2.6 to 6.6 percent.
  3. A recent jobvite survey found that while only 7 percent of applicants came from employee referrals, that 7% accounted for 40% of new hires.  Hires came faster through employee referrals at an average of 29 days, versus 39 days from a job board and 55 days from a career site.  Forty-seven percent of referrals stayed with the company for more than 3 years versus only 14% hired through job boards.
  4. For more hard facts touting the benefits of referrals, click here.

Although employee referrals more often result in accepted offers, most companies do not seem to be using those referrals enough. According to CAI’s latest NC Policies and Benefits Survey, 69% of local employers do not offer a bonus for employee referrals.  That number reveals that companies might have better luck sourcing and hiring the right candidates by focusing on asking for and rewarding employee referrals.

Why are employee referrals so effective in finding the right hire for an open position?

Much like turning to TripAdvisor reviews before choosing a restaurant, employee referrals provide useful context to both the job seeker and the company. Job seekers gain insights about prospective employers from the employee, and companies learn about the reputation of candidates from the recommender.

If you want to maximize the effect of employee referrals for sourcing your next great hire, consider taking the following steps:

  1. Ask for referrals. Don’t assume your current employees are focused on your hiring needs; instead, actively communicate with them about open positions and the types of candidates you seek. Regularly remind employees that they are well suited for recommending others who would fit at your company, and ask them to refer candidates in their networks.
  2. Be specific. Don’t just ask employees to send their friends and family members to you. There’s no reason to be bombarded with résumés of people who may be trusted but are not a fit for potential positions. Instead, share details about specific job requirements and the experience the new hire will have.  Even better, give employees Facebook and Linkedin links about the job they can share with their friends.
  3. Reward successful referrals. If a current employee refers a job seeker who you eventually hire, they should be rewarded. Establish a reward system and communicate it to all employees. For instance, you might reward them with a small monetary bonus, gift card or special privileges at work.  According to CAI’s latest NC Policies and Benefits Survey, the average bonus payout is $575 for non-exempt hires and $747 for exempt hires.  Now at first glance, those numbers seem reasonable and would clearly motivate some people.  At the same time, the average recruiting fee paid to an agency is 21%, or $6,300 for that $35,000 administrative person or $12,600 for that $60,000 engineer.  What would happen if you paid $2,000 for successful employee referrals ($500 up front and $500 after 6 months and $1,000 after a year, or something like that)?

It’s important to remember that people trust one another more than they trust companies. Embrace this way of thinking, and empower your own people to help you recruit with a human approach by embracing the employee referral. CAI members always have access to the latest salary and policies and benefits survey information to help them make smart hiring decisions and retain top talent. Find out how CAI can help your company.

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

HR Metrics that Matter: Talent Acquisition

Thursday, March 2nd, 2017

Unlike many other functions, human resources has not been able to develop and/or sustain universally accepted performance metrics.  As a result, HR metrics often vary widely from company to company and industry to industry. Additionally, the metrics that are most commonly used are not always the best indicators of HR performance or impact.  In fact, HR leaders often make the mistake of using metrics that relate specifically to how well HR is performing administrative tasks.

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The following measures are geared toward measuring HR’s actual impact on the business.

1. Quality of Hire

This metric can be calculated from a combination of a number of factors, including: performance review ratings, actual job results, 9-box ratings, and 6-month Quality of Hire Evaluation Form to obtain the hiring manager’s perspective. You could also review hires that turned over, hires on the promotable list, and hires on the performance improvement list to help determine quality of hire.

2. Time to Fill Key Roles

Not all job openings are equal. In fact, some mission-critical positions carry a lot more weight than a ‘rank-and-file’ opening. Recruiters and HR business partners should prioritize their job openings so that the key roles get the greatest attention. It doesn’t really matter if your overall time-to-fill metric is only 30 days, if it is taking 3 times that long as that to fill key roles.

3. Onboarding Effectiveness

There are basically two simple ways to determine if your onboarding process is effective. The first way is to conduct a post-onboarding survey with new hires on or about 90 days after being brought onboard.

The second way to ensure that the first 90 days are properly scripted into a series of events aimed at supporting the new hire, and ensuring they have been given exposure to the right people.

By asking for completed and signed-off copies of the checklist, with signatures of both the new hire and manager, you improve the likelihood that the onboarding process will be taken seriously.

4. New Hire Dropout Rate

One way to tell how effective the organization is in terms of selecting, hiring, onboarding, and training new hires is to review turnover data. If the turnover rates for new hires (say the first 180 days) or newly hired (first year) are significantly higher that the remaining employee population, you likely have real issues.

Start by asking these questions:

  1. Are we presenting a realistic job preview during the interview process?
  2. Do we have properly trained interviewers asking the right questions?
  3. Are we doing a good job of checking references?
  4. Do we have our act together in terms of a scripted onboarding progression?
  5. Are the hiring managers effectively setting clear expectations?
  6. Have we met the commitments we agreed to during the ‘courting’ stage?
  7. Are we selecting based upon cultural fit?
  8. Do we involve coworkers in the interviewing process?

CAI members have access to all forms, tools, and templates for talent acquisition / recruiting / onboarding online at myCAI. Not a member? CAI can help you build an engaged, well-managed and low-risk workplace, give us a call at 919-878-9222 or visit www.capital.org/membership to learn more.

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

 

4 Ways to Build Trust with Employees

Thursday, February 16th, 2017

According to the 2016 Edelman Trust Barometer, almost one in three people don’t trust their employer. That’s bad news for businesses, because employees who perceive their leadership as trustworthy are more engaged, more satisfied, and more productive. Employees need to know that the person in charge won’t take advantage of his or her position – that they won’t lie, steal, play favorites or betray subordinates. Once subordinates lose trust in their leaders, the relationship is not likely to be repaired.

The trust issue is made even worse by the notion that many employees dislike their jobs. Some estimates suggest that 70% of the workforce consists of passive job seekers. These are people that while they are not actively looking for jobs, are more than willing to listen and explore other opportunities. Having a trusting relationship with the boss clearly improves both engagement and retention.

Let’s look at the four basic ways a leader can improve the trust factor:

  1. Be More Predictable– while it may not be very sexy, predictability is a major ingredient of trustworthiness. In fact, people who are very creative and spontaneous may have trouble getting others to trust them simply because it is often much harder to predict what they’ll do next.
  2. Be More Empathetic – employees want a boss who takes the time to understand them a bit. Take some time to understand the interests of the people on your team. Those could include personal, as well as, professional developmental interests.
  3. Be More Resilient – the ability to remain calm and resilient under pressure depends on high emotional intelligence. It’s difficult to trust a boss that freaks out in the course of stressful situations. In doing so, they unwittingly send a signal that when the going gets tough, they can be counted on to ‘lose it.’
  4. Be More Humble – Where self-promotion is one of the keys to making it to the corner office, humility may be the key to staying there. Humble managers engender trust and help build a better sense of team.

CAI helps employers build an engaged, well-managed and low-risk workplace. Let us help you tap into your employees potential to become effective leaders. For more information on developing your leaders, take a look at one of our upcoming courses, The Five Leadership Practices Certificate Program. 

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations. 

For Millennials, Lack of Loyalty May Be a Sign of Neglect

Thursday, January 12th, 2017

The prevailing wisdom is that, in general, Millennials express little loyalty to their current employers and many are planning near-term exits. During the next year, if given the choice, 25% of Millennials would quit his or her current employer to join a new organization or to do something different. That figure increases to 44 % when the time frame is expanded to two years. (Source: Deloitte’s 2016 Millennial Survey)

This “loyalty challenge” is driven by a variety of factors, for example:

  1. Millennials feel underutilized and believe they’re not being developed as leaders.
  2. Millennials feel that most businesses have no ambition beyond profit, and there are distinct differences in what they believe the purpose of business should be and what they perceive it to currently be.
  3. Millennials often put their personal values ahead of organizational goals, and several have shunned
    assignments (and potential employers) that conflict with their beliefs.

Millennials have recently inched past the other generations to corner the largest share of the US labor market and a growing number now occupy senior positions. They are no longer leaders of tomorrow, but increasingly, leaders of today. We also recognize that Millennials are taking their values with them into the boardroom.

While many Millennials have already attained senior positions, much remains to be done. More than six in
ten Millennials (63 %) say their “leadership skills are not being fully developed.” Unfortunately, little progress is being made in this area. When asked to rate the skills and attributes on which businesses place the most value (and are prepared to pay the highest salaries), Millennials pointed to “leadership” as being the most prized.

Millennials fully appreciate that leadership skills are important to business and recognize that, in this respect, their development may be far from complete. But, based on the current results, Millennials believe businesses are not doing enough to bridge the gap to ensure a new generation of business leaders is created. Need help with workforce strategy and planning? CAI can help!

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations. 

HR’s Role in Helping Employees with Financial Literacy

Monday, January 2nd, 2017

Remember this movie from 2006? Looks like the “failure to launch” group is coming back around. According to recent data from Trulia*, nearly 40% of young adults lived with their parents, grandparents, step-parents and other relatives last year. This is the highest point in 75 years.

As Human Resource professionals, can we help reverse this trend? I believe we can, as many of us are starting to recognize the importance of financial literacy in the workplace. When employees manage their money well, everyone wins.

Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. For many young professionals, they are not receiving a financial education. According to the National Council on Economic Education, only a handful of states requires students to complete a personal finance course in school.

That’s why work is becoming a place to provide education as employees experience life events: home purchases, retirement planning, family changes, and health changes. Using the workplace as a financial education classroom is a tremendous opportunity to increase productivity, engagement, and loyalty.

A report by the Personal Finance Employee Education Foundation clearly provides a business case for financial literacy programs in the workplace:

  • 30 million workers — one in four are suffering serious financial distress.
  • Nearly half of those who are financially distressed report that their health is negatively impacted by their financial worries.
  • 30% to 80% of financially distressed workers spend time at their place of employment worrying about personal finances and dealing with financial issues instead of working.

Employers have an opportunity and a responsibility to educate workers at all levels about financial literacy. The sooner an employee understands and applies the basic principles of financial literacy, the easier it is to achieve financial security.

There are several steps you can take to help employees become more financially literate. The first step is to put the right programs and systems in place. Becoming financially literate means understanding how to manage your income and expenses, handle debt responsibly, save and invest, and prepare for the unexpected. The more prepared employees are to adapt to changes in their financial lives, the more financially fit they will become.

Companies that implement financial literacy programs realize a return on their investment. While on the surface, this appears daunting to implement, employers have a strong incentive because of the strong correlation between financial stress and an employee’s productivity. Remember, most plan providers offer this service for free.

Financial literacy isn’t something that happens overnight. It takes time and effort. Making sure your employees get good information is the first step.

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

 

How to Retain Millennials

Monday, December 26th, 2016

It’s hard to think of an important aspect of management that is more neglected than individual development planning. As a consequence, companies typically pay the high price in the form of the loss of top young talent.

A Harvard Business Review article, “Why Top Young Managers Are in a Nonstop Job Hunt” conducted an analysis of young high achievers and concluded that many of the best and the brightest are not receiving the career development support they desire.

The article stated, “Dissatisfaction with some employee-development efforts appears to fuel many early exits.  We asked young managers what their employers do to help them grow in their jobs and what they’d like their employers to do, and found some large gaps.  Workers reported that companies generally satisfy their needs for on-the-job development and that they value these opportunities, which include high-visibility positions and significant increases in responsibility.   But they’re not getting much in the way of formal development, such as training, mentoring and coaching – things they also value highly.”

There are two primary reasons that companies neglect the individual development process:

1. We tend to focus most on the here and now

Managers naturally tend to be most focused on essential day-to-day operations and less interested in longer-term activities perceived as having less immediate payback.

2. There’s just no time for it

This is another poor excuse.  There’s always time for important activities.  If you believe that development planning is a valuable managerial function, HR must make it a priority and create an expectation that ‘building talent’ is an obligation for all leaders.

Here is why development planning makes good business sense:

1. People care if you take a genuine interest in their future 

Development planning should be something a manager takes a real personal interest in – not an HR-driven mandate.

2. It helps builds loyalty, and loyalty increases productivity

Taking an honest interest in someone builds loyalty.  Employees feel as though the company is investing in them. Loyal employees are more engaged, and engaged employees are more productive. Talented people naturally want to advance, and appreciate the support in the process.

3. Capable ambitious young employees want training, mentoring and coaching

They want to gain skills.  They want to become more versatile and valuable to an organization. If your company doesn’t provide it, enterprising employees will go elsewhere for it.

Key HR Action takeaway:  Development planning doesn’t have to be elaborate or costly.  At its core it’s mostly a matter of good managers taking the person-to-person time to understand their employees, recognizing their skills and opportunities, and documenting them in an agreed-upon Individual Development Plan.

If you’re struggling with creating effective Individual Development Plans CAI can help.

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

6 Things Not to Do When Terminating an Employee

Tuesday, December 13th, 2016

Terminating an employee is a stressful process for all parties. Even though you have repeatedly shared your performance concerns with the employee, they generally don’t believe that they will actually get fired.

You can make the experience easier to digest by using an effective, supportive approach.

Here are the top don’ts when you do decide to terminate an employee.

1. Don’t Terminate an Employee Unless You Are Meeting Face-to-Face 

If at all possible, do not terminate an employee using any electronic method (i.e. emails, voice mails, or phone calls). Even a notification letter is inappropriate. When you terminate an employee give them the courtesy you would extend to any human being.  Some organizations will follow-up with a written notification but this should not be the first time the employee is learning of their discharge,

Employees deserve a face-to-face meeting. Nothing else works. The discharged employee will remember and your other employees have even longer memories.

2. Don’t Terminate an Employee without Warning (for anything not deemed gross misconduct)

Nothing makes an employee angrier than feeling blind-sided when discharged. Unless an immediate, egregious act occurs, the employee should experience some combination of coaching, performance feedback, and or progressive discipline as required.  Before you discharge an employee, try to determine what is causing the employee to fail.

If you decide the employee is able to improve her performance, provide whatever assistance is needed to encourage and support the employee.  Often time your EAP is the appropriate intervention. Document each step.

If you are confident the employee can improve, and the employee’s role allows, a performance improvement plan (PIP) may show the employee specific, measurable improvement requirements.

3. Don’t Terminate an Employee without a Witness 

The best practice is to include a second employee in the termination meeting when you fire an employee. Typically the HR Business Partner and the employee’s immediate supervisor are the two members of management involved in this meeting. HRBP’s can also help keep the discussion on track and moving to completion.

The HRBP can also help pick up the slack if the terminating manager runs out of words or is unsure what to say or do next.

4. Don’t Supply Lengthy Rationale and Examples for Why You Are Terminating the Employee

This is a notification meeting only.  If you have coached and documented an employee’s performance issues over time and provided frequent feedback, there is no point in rehashing your dissatisfaction when you fire the employee. It accomplishes nothing.
Instead, sum up the high points and have ‘talking points’ prepared that correctly summarize the situation without unnecessary detail or placing blame. You want the employee to maintain his/her dignity during an employment termination process. So, you might say:

“We’ve already discussed your performance issues. We are terminating your employment because your performance does not meet the standards we expect from this position. We wish you well and trust you will locate a position that is a better fit for you.”

5. Don’t Let the Employee Believe That the Decision Is Not Final

Because employees don’t believe that you will actually fire them in the first place, they may believe that there is an
opportunity to affect your decision. Approach the employee with kindness, concern, and respect, but your words should be straightforward.

Being ‘wishy-washy’ only complicates the issue for all parties, especially if the employee believes he/she has one
last chance to affect your decision. In fact, tell the employee that the purpose of the meeting is to inform them of your decision, which is final. This is kinder than misleading the employee.

6. Don’t Terminate an Employee without a Checklist in Hand

An employment termination checklist can keep you organized and on track when you need to terminate an employee. The employment termination checklist ensures that you cover all appropriate topics during what can be a stressful meeting for all participants.

In addition, the employment termination checklist also provides guidance about informing the employee of what they can expect from your company upon termination of employment and any related supporting processes. If your company needs help with workforce planning and HR strategy contact us today.

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

Two Basic Things Employees Need From Their Boss

Tuesday, November 29th, 2016

1. RELIABLE AND MEANINGFUL COMMUNICATION communication1

Communication is a hallmark of any healthy relationship. A recent study from Gallup, ‘State of the American Manager,’ found that consistent communication is strongly connected to higher engagement.  Employees whose managers hold regular meetings with them are almost three times as likely to be engaged as employees whose managers do not hold regular meetings with them.

The frequency of meetings is less important to employees than the fact that they happen at all. The Gallup study also found that engagement is highest among employees who have some form (face-to-face, phone or electronic) of daily communication with their manager. And while all forms of communication are effective, managers who use a combination of face-to-face, phone and electronic communication are the most successful at engaging employees.

Employees value communication from their manager not just about their role and responsibilities, but also about what happens in their life outside of work. The Gallup study revealed that employees who feel as though their manager is invested in them as people are more likely to be engaged.

Approachability is a key attribute of a good manager. Employees who feel that they can talk with their manager about non-work-related issues are much more likely to be engaged.

2. PERFORMANCE MANAGEMENT BEYOND ANNUAL REVIEWS

Performance management is often a source of great frustration for employees and managers alike. Employees often do not clearly understand their goals or what is expected of them at work. They feel uncertainty about their duties and disconnected from the bigger picture. For these employees, annual reviews and developmental conversations frequently feel forced and superficial.  It is difficult for them to think about next year’s goals when they are not even sure what tomorrow will throw at them.

Yet, when performance management is done well, employees become more productive, profitable and creative contributors. The same Gallup study found that employees whose managers excel at performance management activities are more engaged than employees whose managers struggle with these same tasks. Finally, when managers help their employees set work priorities and performance goals they are much more likely to be engaged.

Not sure where to start with performance management or have a specific question? Contact our Advice & Resolution team today!

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Tom Sheehan brings 20+ years of extensive, broad based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

Creating a Performance Culture

Tuesday, November 8th, 2016

What is a Performance Culture?

Performance cultures have great focus on results and accountability and have the following traits:employeeperformance

  1. Accountable, results driven
  2. A focus on people
  3. Long-term orientation
  4. Proactive and decisive
  5. Open and transparent

How do you create a Performance Culture?

Changing a culture is really about changing the behaviors of the people in the organization. Changing behavior is not accomplished through a one-time training class or some special incentive. Instead, it requires a long-term view with regular and frequent support from the top of the organization.

Leadership’s Role is to Provide Clarity & Ensure Accountability

Senior leaders have the greatest impact in terms of creating a performance culture. It starts with the creation of a strategic direction, delivered with great clarity. Employees must get a sense that those leaders are taking the company in the right direction. A second element involves leadership’s focus on people. Part of that focus must be that the leaders are seen as being concerned for the well-being of their employees. In addition, they must be viewed by the ‘rank-and-file’ as being accessible and approachable.  Finally, leaders must model the desired behaviors (and values) every day and with every employee interaction. Their most critical behavior is demonstrating accountability.

Many companies struggle to hold their employees, managers, and leaders accountable for performance. Likely a big reason for this is that people struggle to set clear expectations and have difficult performance conversations. The truth is that there must be consequences for failing to meet expectations and commitments. That is the essence of accountability. Without consequences, there is chaos.

A terrific resource for helping to people better understand and deliver accountability is ‘The Oz Principle.’ The book is dedicated to sharing practical methods on how to improve both individual and organizational accountability. The spirit of the book is that both people and organizations have a choice to either act above or below the accountability line. This thin line separates success from failure.

Below the line lies excuse making, blaming others, confusion, and an attitude of helplessness. Conversely, companies and people that act above the line have a sense of reality, ownership, commitments, and are solutions oriented.

Answer these questions to determine if your organization is operating below the line:

  1. Do our employees tend to ignore or deny problems?
  2. When something needs to be done, do our employees say “It’s not my problem”?
  3. Is there finger pointing behavior in which people seek to shift the blame to others?
  4. Do our employees say “I’m confused, tell me what to do to solve the problem”?
  5. Is there a CYA mentality?
  6. Do employees take a “wait and see, maybe things will get better” approach?

The Role of HR

How can you as an HR professional influence the performance culture? Here are a couple of suggestions:

  1. Train on Accountability
    • Train both leaders and their teams on the crucial relationship between accountability and organizational results
    • CAI has an excellent training program called, Becoming the Totally Responsible Person ® (TPR). This program reinforces the importance of personal accountability.
  2. Coach Accountability
    • Ensure that continuous feedback becomes an everyday part of every manager’s job
    • HR needs to assume that managers will need formal training of how to provide performance feedback
  3. Reward Accountability
    • Recognition programs should spotlight those who consistently are highly accountable
    • Reward project teams that deliver on their commitments
  4. Measure Accountability
    • Train managers on how to have difficult conversations with their team members
    • Use metrics, tools and resources to make the process easier
    • Use success factors (profiles) rather than generic job descriptions to clarify expectations

For further information on this topic contact CAI’s Advice & Resolution team today!

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Tom Sheehan brings 20+ years of extensive, broad based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

Time to Break the Link?

Tuesday, October 18th, 2016

Conventional wisdom often creates a strong linkage between performance evaluation ratings and compensation. On its face, this link seems completely appropriate. After all, it is only natural for people to think that stronger performance deserves more pay, weaker performance less.

However, a performance / compensation model with this direct link has a number of inherent downsides. First, many managers “force fit” employee rankings into desired compensation distributions in order maintain budget.  This practice discredits the performance system, breeds cynicism, and demotivates employees.performance-ratings

Another unwanted side effect of a direct linkage between performance rating and compensation is that many employees worry excessively about the pay implications related to the differences in ratings. As a consequence, they become fixated on their rating and drown out any discussion about developmental needs.

Focusing less on the link itself between performance and compensation allows companies to worry less about tracking and rating, and the consequences thereof, and more about building capabilities and inspiring employees to stretch their skills and aptitudes.  Now, to be clear, I am not suggesting that compensation has no linkage with performance. I simply believe that the focus on the immediate linkage, at the time of the review, has several drawbacks that take away from the intended outcome of the performance review process and discussion.

Here is the rub: Since only a relatively few employees are truly standouts, (5-10%, perhaps 15%) why risk demotivating the broad majority of your employee base by focusing almost exclusively on the linkage between pay and performance.

Even General Electric, a long time proponent of the performance – pay linkage model and all the related processes and templates that go with it, is currently reinventing itself in this arena.  They are considering options ranging from dispensing with the entire model to a more gradual shift over time. They also understand that they must equip their managers with new tools and methods to motivate and reward employees.

The growing need for companies to inspire and motivate performance makes it critical to create managers and supervisors who are better coaches. Without great and frequent coaching, it’s difficult to set goals flexibly and often, to help employees stretch their jobs, or to give people greater responsibility and autonomy while demanding more expertise and judgment from them.

If you’re rethinking your organization’s performance management process, you don’t have to go it alone. Contact CAI’s Advice & Resolution team to help you and your leadership team evaluate alternative models and coach you through making a change.

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Tom Sheehan brings 20+ years of extensive, broad based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.