Measuring Employee Performance

5 Performance Measurement Myths

The question of how to measure employee performance represents one of the last vestiges of old-school HR methodology. Today’s workforce is digitally transformed, highly social and mobile, made up of multiple generations, and collaborating across virtual and global locations. There has been a profound shift in the workforce away from hierarchical, top-down organizations towards teams and collaboration, where having a culture of recognition can drive engagement and results far more effectively than infrequent reviews handed down from on high by management.

We all want the best hires and to lure the top talent. But once on board, they’re part of the organization, and now making sure that they’re fully engaged becomes the challenge. But how do we know if they are working up to their potential? Old-school approaches to performance management, which view a single employee outside of the context of today’s team-based, networked workplace, no longer ring true. Indeed some would argue that many of these approaches were myths to begin with – and I’d have to agree.

Here are five assumptions about measuring employee performance that need to be retired:

Myth #1 – Individuals should be judged solely on their own performance.

The idea that we perform as an island may apply to an isolated few, but it doesn’t fit the majority of workplaces — either today or yesterday. The investment made in working out how to evaluate individuals may be better spent evaluating the quality of their team or business unit’s output. What targets have been hit? What goals have been reached?

Perhaps we should be evaluating employees not only on their performance, but on their level of engagement and on their ability to thrive in team-based environment. Highly engaged employees are more likely to give the kind of discretionary effort that all bosses are looking for, and that have a tangible effect on a company’s bottom line. In fact, Aon Hewitt has reported that for every incremental one-point increase in employee engagement organizations saw a 0.6% increase in sales. For a company with sales of $100 million, this translates to a $6 million windfall! And in companies with the most engaged employees, revenue growth was 2.5 times greater than competitors with lower levels of engagement.

Myth #2 – Good employees just do the job, they don’t need a reason or added meaning.

Is the better employee really the one that doesn’t need to understand how their work aligns with company’s mission and values? Performance stems from engagement. And being engaged stems, in large part, from feeling aligned to — and invested in — the company purpose. Motivation and meaning go hand in hand.

Even if a task is performed well, accomplishing it inside a vacuum is going to create a gap somewhere along the line. Employees deserve to know why they’re there. They’ll participate more fully, and are more likely to push to reach targets and goals if they are invested in the rationale behind the effort.

Myth #3 – An employee that’s good this year will be good next year.

When a team of researchers dove into six years of performance review data from a large U.S. corporation, they found that only a third of high-scoring employees scored as high in subsequent years. And they found no evidence that high-performing employees always perform highly, or that poor performing employees perform poorly. Today’s workforce is continually being met with innovations that require new learning and new skills, so what’s “good” today may not be an accurate measure of what’s desirable tomorrow.

When a company uses trackable learning platforms, they have a means of measuring growth and development. To drive engagement and retention they can extend from onboarding programs, demonstrating a commitment to an employee’s growth from the moment of hire. 84% of employees want to learn, and keep learning. When you align an employee’s learning with the company’s business goals, that’s a win for all.

Myth #4 – Past performance is indicative of future results.

In 2015, a number of Fortune 500 companies announced that they were doing away with old school performance reviews. Accenture, the Gap, Adobe and General Electric all veered away from the annual or quarterly review ritual in favor of building a stronger culture based on continuous feedback and frequent recognition.

What’s happening instead is that many companies are moving to a system where employees and managers can give and receive social feedback and track the history of recognitions given and received. This new approach – measuring the frequency of peer-to-peer, intra-team and team recognitions within a powerful digital and social recognition program – provides better quality insights and has the potential to foster a far more positive, and productive, work culture.

Myth #5 – The best way to measure performance is when no one’s expecting it.

Spot checks, random and unexpected, are still recommended by some HR stalwarts, who assert that it’s a way to motivate employees to give a consistent performance. But it conveys an atmosphere of mistrust that may be more of a de-motivator.

Trust is critical to employee engagement, but it’s still in short supply: a recent survey of nearly 10,000 workers from India to Germany to the U.S. found that only 49% had “a great deal of trust” in those working above and alongside them. Contrast that with study findings showing that organizations are extremely concerned with driving engagement and promoting a workplace culture that is based on transparency and meaningful work. You can’t have both.

That we’re still having this conversation is in part because we may lack the imagination to see our way to a new starting point. But the real drive to perform comes from within.  We are motivated by purpose, and by being appreciated for what we do.

Employees today want to be engaged, we want to know what higher purpose our efforts are contributing to, we want to excel and to grow. Employers should start with that knowledge and measure their employees accordingly.

Make sure to check out the other series of guest blogs from Meghan Biro, starting with her first guest blog post For Recognition To Have An Impact, Make It Strategic.

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About Meghan M. Biro
meghan biroMeghan M. Biro is a globally recognized Talent Management and HR Tech brand strategist, analyst, digital catalyst, author and speaker. As founder and CEO of TalentCulture, she has worked with hundreds of companies, from early-stage ventures to global brands like Microsoft, IBM and Google, helping them recruit and empower stellar talent. Meghan has been a guest on numerous radio shows and online forums, and has been a featured speaker at global conferences. She is a regular contributor at Forbes, Huffington Post, Entrepreneur and several other media outlets. Meghan regularly serves on advisory boards for leading HR and technology brands. Meghan has been voted one of the Top 100 Social Media Power Influencers in 2015 by StatSocial and Forbes, Top 50 Most Valuable Social Media Influencers by General Sentiment, Top 100 on Twitter Business, Leadership, and Tech by Huffington Post, and Top 25 HR Trendsetters by HR Examiner.

 

Managing Remote Teams

Managing remote teams: how to lead from a distance

Now that technology has made it easier than ever to telecommute, companies are relying more and more on teams of remote employees. However, these long-distance workers can pose unique challenges for the managers who supervise them. Without the traditional trappings of an office, coffee breaks, and face-to-face communication, managers need to find new ways to coach and connect. Here are three best-practice tips that are proving successful in managing remote teams:

  1. Focus on outcomes

Are you accustomed to judging your employees’ productivity according to whether they show up on time and look like they’re busy? If so, managing a team of people you can’t see will force you to find other evaluation methods and rely more on employee accountability. Sara Sutton Fell, CEO of FlexJobs, points out that, “It’s much harder to fake productivity when you work remotely, as long as managers are focusing on goals and outcomes for their employees and teams.” She notes that successful managers set “granular tasks,” with weekly and possibly even daily milestones. If your employee is hitting all their productivity marks, you don’t need to worry about how many hours they’re actually at their desk, or whether they take a break to move their laundry.

  1. Encourage multi-function communication

Staying in touch with your remote workforce means using a range of communication channels. Regular phone conversations are important, as are emails and texting. Collaboration platforms allow remote team members to share projects at a distance, and teleconferencing software lets you gather your team together in one virtual location. In addition to these formal communication channels, Harvard Business Review recommends the use of technology to “create water cooler moments.” Impromptu conversations between colleagues are one of the most valuable aspects of in-person work, and setting up an open video link between offices is the best way to reproduce this casual team-building friendliness.

  1. Develop a strong onboarding process

Traditional onboarding involves setting up an employee’s workspace and showing them around, so it may seem less relevant to your remote workers. In fact, a carefully thought-out onboarding process is essential for building your remote team. The underlying purpose of onboarding isn’t merely to introduce logistical details; its real value lies in aligning new hires with company culture and helping them feel like part of the team. Eric Siu, CEO of San Francisco marketing company Single Grain, has set up an internal wiki using Hackpad for sharing logistical information, but he also reminds managers “Don’t skimp on face time.” Personal connections, especially at the beginning of employment, are vital to laying the foundation for employee loyalty.

Managing remote teams effectively doesn’t mean you have to develop an entirely new set of skills. If you rely on your professional instincts and simply adjust a few of your methods, you’ll find yourself leading a productive, engaged team.