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Employee Evaluations

5 Elements of a Healthy Performance Review Process

Before you start defining the elements of a healthy performance review process, it’s worth investigating how or where your process went wrong. Historically, performance reviews were created with the best of intentions and remained unchanged for centuries.

The idea that people are motivated by knowing where they stand within an organization gave birth to the “rank and yank” method of ranking employees into top, average, and poor performing tiers (and eliminating those at the bottom). This was popularized by Jack Welch, former CEO and Chairman of General Electric (1980-2001).

As with many common business practices, the millennial generation is challenging the way performance reviews work. Not only have forced ranking and merit-based raises been found ineffective, leaders and human resources professionals have reported performance reviews to be a significant waste of time.

While performance management is sometimes a necessary evil, thankfully, the delivery system and the value it provides is trending in a healthier direction. Let’s have a look at five elements of a healthy performance review process.

1. Regularity

The traditional performance review that takes place once or twice a year tends to be an anxiety-inducing event in which employees are sometimes blindsided by their supervisor’s perception of their performance. To be effective, performance feedback should be delivered on a regularly scheduled basis so it becomes less stressful and includes more than an overview of how they have performed over the last twelve months.

Employees will have a better chance to grow, improve, and possibly change their approach to work if they’re receiving timely, specific feedback rather than waiting several months to a year after the fact to hear about their performance.

2. A Strong Focus on Goals

A healthy performance review process includes more than just feedback, it’s a great opportunity to establish goals and expectations. This is another reason the review process should be done more regularly. As soon as current goals are met or exceeded, you can put new ones in place, rather than waiting until a formal review to adjust strategy. This will help keep your team members from growing bored or frustrated and keep them focused on imperative business objectives.

Meeting to discuss an employee’s performance, as well as their goals, helps you as a leader understand the direction they’re heading and how you can guide them, as well as how you can align their strengths and interests toward the shared goals of your team. If you have a learning management system in place, you can also pair some of these performance goals with specific learning or training objectives and track progress in real time.

3. Two-Way Conversations

“Talking at,” your employees can make them feel intimidated, or worse, annoyed. The lack of two-way communication is one of the many reasons the traditional performance review is ineffective — more than anything, the employee just wants it to end as they might be feeling belittled, unimportant, or unheard.

Instead, use the designated review time to have a two-way conversation. Spend time discussing how your employee feels about their own performance and how they feel about your performance as a leader. Ask for their thoughts on the company’s current mission and goals. Encourage them to be decisive, and solicit their ideas. Where possible, put what they tell you into action, so they know that your interest in their opinion isn’t perfunctory. This method of communication is more aligned with the modern workforce; today’s employees, especially the millennial generation, prefer coaches to managers.

4. Balanced Feedback

You already know that going into a performance review with only negative feedback can discourage an employee from making the corrective behavior necessary to get on track. A poor performer still needs to understand how their skills are valuable to the organization, the areas they are making strides in, and where you see potential for improvement.

Similarly, providing only positive feedback (even to an outstanding performer) isn’t helpful either. A healthy review should balance both positive and negative feedback. Growth only comes from pushing people past what they thought they were capable of, and an ambitious employee will look for a manager willing to do just that. Your job as a leader is to do the pushing; by acknowledging areas of improvement, and establishing new goals.

5. Performance-Based Incentives

A system of goals and evaluation criteria is a step in the right direction if you’re hoping to boost performance. But your employees will never feel intrinsically motivated to improve unless there is some benefit or reward tied to success. If they know the only reward for above-average work is the approval of their manager, you won’t see much growth.

Make sure your performance reviews are connected to a tangible reward or incentive for each employee. How you reward the employee should be individualized, and is dependent on available budget, but it could be anything from a restaurant gift card to a quarterly bonus, or even a permanent raise for the highest performing employees. Don’t let your most valuable employees feel unappreciated, demonstrate their value to them with tangible assets–verbal affirmation is nice, but it doesn’t pay the electric bill.

When you do away with forced rankings and outdated goals and start having meaningful conversations with your team, you can soften the cutthroat atmosphere at work and engage your employees as individuals. This in turn will create a culture of trust, allowing for constructive criticism and healthy performance reviews that include regular, balanced feedback, goal-setting, and an opportunity for a two-way conversation. Furthermore, a healthy review process tied to measurable incentives will not only result in higher performance, but happier employees as well.

To learn more, check out 6 Tips to Tackle Performance Reviews for Managers and Employees.

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About the Author
Jessica Barrett Halcom is a writer for TechnologyAdvice.com, with specializations in human resources, healthcare, and transportation. She holds a bachelor’s degree from the University of Wisconsin, Green Bay and currently lives in Nashville, TN.

 

Employee Engagement and Performance

Why Recognition Is Essential to Employee Engagement

When I entered the workforce in 1997, I wanted to find an employer that would offer me a long and fruitful career; a goal I shared with the Baby Boomer generation before me.

While this has been the experience of my wife, who has enjoyed 17+ years of employment with the company that recruited her out of college, I’ve worked for six companies in the almost 20 years since I graduated. One of the biggest things I’ve noticed? The social contract between employer and employee has changed.

Currently, the tenure of a knowledge worker is less than three years at a single company, and with the steady emergence of the “gig-economy,” I fully expect that number to continue decreasing over the next 10 years.

The rising cost of recruiting and retention accentuates the need, now more than ever before, for employers to do all they can to attract and retain high-performing individuals.

Tap into discretionary effort for maximum performance

I’ve had the good fortune of managing teams for the past 10 years. In that time, I’ve learned a great deal about how to get the most out of people.

To me, the goal of any good leader should be achieving maximum performance by tapping into the discretionary effort of their team members. By discretionary effort, I mean the level of effort people could give if they wanted; above and beyond the call of duty.

I always tell potential candidates that by hiring them, I’m purchasing 40 hours of their time per week, but my underlying intent is to tap into any discretionary effort they’re willing to exert by aligning their objectives to the success of their team, and the greater organization. To accomplish this, a clear understanding of the link between an employee’s efforts and business success is key.

Recognition for improved employee engagement

Employee recognition should be a tool that all leaders have at their disposal to elicit maximum effort from the individuals that value it (keeping in mind that not everyone does). Almost 70% of workers say they’d work harder if they felt their efforts were better appreciated.

Often, when employees feel valued, engaged, and emotionally committed to their work, they’re willing to go the extra mile for their company. The Corporate Leadership Council studied the engagement level of 50,000 employees around the world to determine its impact on both employee performance and retention. Two of the many important findings from this report were:

  • Engaged companies grow profits as much as 3X faster than their competitors.
  • Highly engaged employees are 87 percent less likely to leave the organization.

In the past, employee recognition was sporadic, often focused on tenure instead of performance. Sometimes it happened in public forums where leaders celebrated an individual’s accomplishments in a top-down fashion. Most of the time, recognition was given at the individual level in private conversations or correspondence (such as a performance review), likely not often enough to have a meaningful impact on employee engagement.

With the advent of the digital workplace, recognition can and should be given with more visibility and frequency; the end goal being a workforce made up of engaged employees.

Creating an engaging digital experience

Having tools that promote engagement and recognition is becoming essential to HR and IT initiatives in the evolving digital workplace. According to Aon Hewitt’s 2017 “Trends in Global Employee Engagement,” study, Rewards and Recognition ranked as the strongest engagement opportunity this year. But you need to find the right technology partner to help you provide an experience that your employees love to use in order for it to pay dividends.

I speak with companies daily that are faced with the challenge of replicating their “brick and mortar” culture in a digital environment. With their workforce spread out across offices, geographies, and time zones, they need to provide an employee experience that allows individuals to meaningfully connect to the company and their colleagues.

While many tools exist, those that focus on interoperability are the ones that are having the most impact. With the overwhelming quantity of tools and applications that exist inside an organization today, it’s critical to offer an integrated experience that plays to the strengths of each individual solution, resulting in a more efficient use of the entire technology portfolio.

To learn more about the impact employee recognition can have on engagement and performance, check out Achievers’ “Ultimate Guide to Employee Recognition”.

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About the Author
Chris Myers Igloo
Chris Myers is VP Partnerships & Alliances for Igloo Software, a leading provider of digital workplace solutions that help companies build inspiring digital destinations for a more productive and engaged workforce. Chris owns overall partner strategy for Igloo and is responsible for three programs – Technology Alliances, Channel Partners and Developers. Connect with him on LinkedIn.

 

 

unbeatable workshop ideas

5 Fun Employee Workshops to Host in the Office

Office workshops break up the day, boost employee loyalty, and reduce turnover because they communicate the message that each individual contributor is more than a number. The key is in choosing the right workshops; the less they feel like a chore for employees, the more effective they’ll be. According to management training and leadership experts at Mind Tools, ineffective workshops can bring more problems than they actually solve: “Done wrong, they can be a huge waste of time and money. However, if they’re planned well, they can be incredibly valuable for everyone involved. Workshops are great for brainstorming, interactive learning, building relationships, and problem solving,”

Consider the following five workshop ideas and how they might fit with your company culture. Choose a few to sprinkle into the company calendar, adding variety and fun to the usual brainstorming sessions and project-focused meetings.

Lunch and Learn Workshop

Choose a day each month when all the members of your department converge for an hour to “network” internally. Cater lunch from a local restaurant or ask everyone to bring a potluck dish to make it more of a special event. Each month, one team or employee will share an important project they’re working on. The rest of the team can then provide constructive feedback and fresh ideas.

This open dialogue strengthens both the sense of camaraderie and level of collaboration between teams. It’s easy to operate in a siloed organization, but that’s not good for business, or your employees. Use your monthly “Lunch and Learn” to remind employees that their co-workers are valuable resources that they can and should turn to.

Self-Defense Workshop

Not all workshops need to be work related—in fact, to keep employees interested, it’s better if some aren’t. Workshops such as this one for self-defense show employees that you care about their well being, both in and out of the office:

“For companies who care about their employees, especially those whose employees regularly walk to their cars at night or alone, it would behoove employers to offer self-defense training courses for workers,” says Jeremy Pollack, self defense expert for Home Security Super Store.

The most important part of this workshop is choosing the correct instructor. Pollack suggests the following tips for vetting:

  • Does the instructor have videos you can look at?
  • Has an HR rep or a referring party been to an actual class and seen what the instructor has to offer?
  • How realistic is the instructor’s self-defense style, and how much real-world training and application does the instructor have?
  • Does he or she fit with the culture of your workplace?

Vision Board Workshop

Transform a conference room into a creative space for employees to make their own vision boards. Vision boards are a visual representation of how you want to feel or something you want to accomplish – a way to bring things inside you to life. Giving your employees the opportunity to create their own vision boards is an exercise in abstract thinking and serves as a way to help them explore avenues and inspiration for personal growth, both within the organization and as individuals.

A few key materials for this includes:

  • White boards and markers
  • Pens/pencils
  • Sticky notes
  • Magazines
  • Scissors

Host this workshop each month, allowing  a maximum of five participants each time. At the end of the workshop, have the participants share their favorite piece of the completed vision board with fellow employees. This should be inspirational and eye opening for everyone, even employees who didn’t participate that month.

Take it up a notch by inviting a life coach into the office. The five participants can talk with the life coach for 30 minutes as a group to start thinking creatively about their profession and growth. They can use this conversation to spur their ideas.

Mindfulness Workshop

Research conducted at the University of California Berkeley has found that practicing moment-to-moment awareness can reinforce an employees’ confidence, satisfaction, focus and productivity. Help them funnel these positives into their job performance by offering mindfulness workshops.

A few mindfulness workshops you can host include:

  • Meditation, guided with a focus on productivity
  • Yoga for reduced stress
  • Awareness and relaxation training
  • Work-life balance training

If employees love this workshop, you could make meditation and mindfulness a daily part of their routine. For example, schedule one conference room as “open” from 8-10am for quiet meditation every morning. People can choose to use it as they desire, boosting efficiency and well-being at the same time.

Financial Tools Workshop

Facilitating a money management seminar will help your employees understand the nuances of investment, budgeting, diversification and other financial concepts. Equipping people with the knowledge and resources to allocate their income wisely is both a source of empowerment for them and a reflection of your leadership expertise and concern for their overall well-being.

According to experts at Jumpstart Coalition for Personal Financial Literacy, “Companies providing financial education show improvement in the workplace including increased productivity, employee morale, and company loyalty and decreased healthcare costs, absenteeism, turnover, workplace distractions, and operational risk across the company.”

As the Jumpstart experts explain, a workshop like this is also beneficial to your bottom line, “Financial education programs have the effect of contributing to the company’s bottom line between $3 and $4 for every dollar spent.”

Financial workshop ideas include:

  • Financial tracking: Creating and maintaining a budget; setting goals.
  • Smart investing: How and where to invest; how to get the most for your money.
  • Credit cards: Smart use of credit; best ways to maintain good credit; what to look for in credit card rewards.
  • Retirement: How to prepare; what the company does to help; different types of accounts, along with benefits and drawbacks of each.

Regardless of your business’ overall size or scope, company growth is dependent on an engaged, cohesive and dynamic workforce. Therefore, offering workshops that benefit your employees, both professionally and personally, can mean the difference between attracting and maintaining top-tier talent versus mediocre space-fillers. Make your team feel appreciated, and their performance will speak for itself.

Are you looking for more ideas on how to improve your office culture? Check out my blog post 5 Company Initiatives That Improve Office Culture.

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About the Author
Jessica ThiefelsJessica Thiefels has been writing for more than 10 years and is currently a professional blogger and freelance writer. She spent the last two years working tirelessly for a small startup, where she learned a lot about running business and being resourceful. She now owns her own business and has been featured on Forbes. She’s also written for StartupNation, Manta, Glassdoor and more. Follow her on Twitter @Jlsander07 for more small business tips and ideas.

 

 

 

High Performance Employer

Designing a High-Performance Work Environment

In our previous posts, we focused on Pivotal Habits (ones that prepare us to perform by making us healthy, happy and secure) and Work Habits (the ones that make up our jobs).

We discussed the critical role these habits play in creating superior performance for employees and competitive advantage for companies. We explored why habits are frequently missed by businesses as the fundamental driver of performance, and recognized that adopting new habits is in some sense hard for people to achieve, and challenging for employers to create.

In this final post, we will explore how employers can approach the design of their businesses to ensure high employee performance, while also making sure that employees are engaged in and loyal to the business.

Understanding the foundational role of habits, we can frame the employee performance challenge for employers as a design problem:

How do you effectively design your workplace to make it easy, natural and enjoyable for employees to practice their Pivotal and Work Habits, in a way that not only has them perform optimally, but that leaves them thrilled with the experience, grateful for the support and highly engaged with you as an employer?

In solving this design challenge, the first thing to notice is that there are many things that make up the “workplace.”  It is the sum of all things that “surround” employees while they work, and these things are highly influential over how they think, feel and act. We can bucket all the things that make up the surrounding elements into four categories that we call Contexts, and they are vitally important to solving the design problem. Why is this?

A fish swimming in water (the Context for the fish’s life) is completely influenced by that water in everything that it does. So too are humans highly influenced by the Contexts of their life, and just like the fish we tend not to notice the influence of Contexts until they’re not there.

Perhaps this explains why most employers focus on employees when trying to solve productivity problems. We see the lack of performance and we typically associate the issue with the people.

We don’t notice, and therefore don’t act on, the surrounding Contexts that influence people in their daily work. In fact, the nature of Contexts (that they are unnoticed by most people, yet highly influential over our actions) is precisely what makes them so important to business designers.

The Contexts for workplace design

There are four Contexts we need to understand:

Physical Spaces: The physical environment in which employees conduct their work, which increasingly includes the home office as well as the more traditional office and factory floor environments. Designing high-performance spaces is more than just ensuring employees have the tools to do their jobs and requires us to understand the ways that physical design choices affect us psychologically.

Workplace Systems: The policies, procedures, business processes or, more simply, the rules (written and unwritten) that employees are expected to follow make up this context. Some of these rules leak into the workplace (like the laws of the land or the fact that we drive on the right side of the road) and can influence how we behave as well. So, it’s important to not only design our own rules but to understand how they will interact with rules that exist in the wider world.

Social Influence: The people that we work with every day. The day-to-day interactions with work colleagues and customers via live conversations, emails, shared experiences, and at events all strongly influence how we work, and what we achieve. We like to think we make all our own decisions, but at least 60% of the actions we take are highly or completely influenced by the people around us.

Individual Self: Our individual experiences, opinions, beliefs, knowledge and other filters through which we interpret the world. The stories we tell ourselves about the experiences we’ve had in the past hold the power to influence us in the present, which is why storytelling is such an effective influence method for employers. It can help employees to rewrite their personal stories in a way that helps to align their actions with the vision and mission of the business.

Each of these Contexts can be designed by an employer seeking to influence the experience employees have while at work. These experiences in turn affect the actions we take, the habits we form, and the way we feel about where we work.

Creating new habits by design

Understanding that designing Contexts is the most effective approach to establishing new habits still does not explain HOW to proceed.

To guide our thinking, we need to ask: What does it take to create a new habit? Or rather, is there a formula for creating new habits?

It turns out there is. Contexts influence us by creating forces that nudge us towards or away from certain actions. Just like the Contexts, there are four forces that influence habit creation.

Two forces that help us adopt a new habit are Compulsion and Capability. Compulsion is the urge to do something and it is a stronger feeling that mere motivation. For example, simply being motivated, or desiring something (like losing weight) never gets the job done. It’s the actions we take that make the difference, therefore we need to be compelled into action.

However, without the Confidence that we can succeed, we’re unlikely to take the first step and without Competence (knowledge and skills) we’re likely to fail even if we are confident. Competence and Confidence together make up Capability and, combined with Compulsion, help us to take new actions and adopt new habits.

Of course, life gets in the way sometimes. We run out of time, we get distracted, or we are derailed by last minute requests or family emergencies. These life events represent the two forces acting against us, either as static impediments to change (Barriers) or as active antagonists that draw us away from the actions to which we’re committed (Temptation).

The formula for new habit creation

The formula for creating habits says that if we’re Compelled and Competent enough to overcome Barriers and to resist Temptation, we’ll take new actions. If the forces stay in our favor over time, those actions will turn into habits. Thus, our habit change formula can be written as:

If (Compulsion + Capability) > (Barriers + Temptation) over time, new habits emerge.

The catch is that the formula needs to be true in ALL FOUR Contexts at the same time, and this explains why creating new habits can be such hard work.

We can use a series of Influence Methods, which are the many and varied ways in which an employer can ensure that the habit creation formula holds true, when designing all four Contexts. Applying these Influence Methods is the art and science of designing workplace Contexts and, when focused on the right habits, the well-spring of higher performance.

Achieving sustainable competitive advantage

In our Behavior Research Lab, BRATLAB, we’ve researched, discovered and applied over 80 distinct Influence Methods that not only support employees in practicing new habits of performance, but do so in a way that leaves them thrilled with the experience, grateful for the support provided by their company and highly engaged with their work and their employer.

Going to work on employee habits is a strategy that will remain hidden from competitors, but one that is massively powerful in producing results.

Employers that wish not only to future-proof their businesses, but to create a difficult-to-copy, sustainable competitive advantage, must learn the value of designing Contexts, and the many ways in which the array of Influence Methods can be integrated into those Contexts to ensure that employees perform at their best, and love working where they do.

This is how, at Habits at Work, we’re reinventing the world of work so employees thrive and companies flourish.

Professional speaker and founder of Habits at Work and BRATLAB, Andrew Sykes will talk about How to become a High-Performance Employer.

During Andrew’s webinar he will:

  • Explore why employee habits are the fundamental unit of corporate competitive advantage and why they’re often overlooked by leaders and managers.
  • Share research from the Behavioral Research Applied Technology Laboratory (BRATLAB) on which habits really matter, and how to design a business that makes it easy and natural for employees to sustain high performance over time.
  • Tell stories about the work of Habits at Work helping employers from a variety of industries to put their money where their mouth is when they say “People are our most important asset.”The stories of challenge and failure serve as cautionary tales of what not to do. The stories of success provide guidance on why design thinking is the key to future-proofing your business from competition and the pathway to becoming a high-performance employer.

Andrew’s webinar represents a brief summary of his upcoming book: Habits at Work: How to Create a High-Performance Employer, due for publication Fall 2017.

The webinar will cover a lot of ground in a fast-paced, lively and entertaining 1-hour session. Prepare to learn a lot, leave with food for thought and a new view on the future of the world of work.

http://blog.achievers.com/2017/02/designing-high-performance-work-environment/

 

 

About Andrew Sykes
Andrew Sykes
For more information, contact Andrew at Andrew@habitsatwork.com or read more online at www.habitsatwork.com or www.BRATLAB.com

 

 

 

 

Most Valuable Work Habits

Which Habits Drive Superior Employee Performance?

In our previous blog, we explored how a company’s destiny is intimately linked to the Pivotal and Work Habits that its employees practice.

Employers have traditionally been inattentive to the design of employee habits, focusing instead on results produced. While this is a reasonable approach, employers have missed the opportunity to create environments that makes it easy for employees to practice both Pivotal and Work habits, which provide a difficult-to-see (and therefore difficult-to-copy) competitive advantage.

Pivotal Habits are the sets of health, happiness and financial security behaviors that prepare us to perform. They are the largest untapped source of increased human performance at work.

Practicing Pivotal Habits maximizes the probability that we show up to work each day full of energy, mental clarity and focus. If these habits are well supported by employers, they leave employees highly engaged with their work and their customers, and inspired to make a difference.

Practicing Pivotal Habits creates performance improvements in all people, irrespective of their roles in the business.

BRATLAB Habit Prescriptions: Which habits matter?

In our research at BRATLAB, we have found 9 collections of Pivotal Habits that consistently produce superior performance results.

Pivotal Habit Collections

Health

Move (exercise, stand and move more)

Nourish (eat for optimal performance, remove toxins like tobacco, moderate consumption of risky substances like caffeine and sugar, supplement as required)

Restore (sleep 7-9 hours, limit device usage, manage stress and adhere to drug regimens whenever required)

Happiness

Savor (savor positive experiences, practice optimism, express gratitude)

Focus (create positive relationships, perform acts of kindness and generosity, practice mindfulness)

Foster (use character strengths, show self-compassion, live purposefully)

Financial Security

Protect (purchase sufficient insurance, protect against identity theft and fraud)

Manage (learn and apply money management skills, reduce debt, create a budget and track spending regularly)

Save (save for retirement, create a short-term savings plan)

You’re probably not surprised by most of the items on this list, however the crucial details of the most effective version or prescription for each Pivotal Habit varies based on the outcomes we desire.

For example, if you’re interested in achieving improved cognitive function, then the current research says the detailed Move Prescription for producing that outcome is to do six minutes of high intensity exercise (like jumping jacks, burpees, high knees and a variety of other exercises that get your heart rate pumping) just before you need your brain to work best, and the effect lasts for the next two hours.

Alternatively, if the outcome you desire is reduced healthcare costs as an employer, then the detailed Move Prescription is doing medium intensity cardiovascular training, mixed with weight training, four to five times per week for 30 minutes at a time.

The devil is in the detail and the details matter to the kind of performance gains employers will see.

For most people and companies, the outcomes we want are “all of the above” and so we have to very carefully design the “lowest common denominator” versions of each Habit Prescription.

This is the work we do at Habits at Work, helping each employer find the Pivotal Habit Prescriptions that optimize employee performance AND that are a fit for those people and that company.

Which Work Habits matter most?

Pivotal Habits prepare every human being to perform better in their roles in life and at work. But this habits thinking extends to the details of our actual jobs as well.

We can ask, “Which behaviors, practiced again and again, will result in us performing our roles optimally, achieving the best possible outcomes in that role and for the customers and businesses we serve?,”

In the previous blog we labeled these our Work Habits and showed how they, together with Pivotal Habits, are the fundamental building blocks of corporate competitive advantage.

Unlike Pivotal Habits, these Work Habits are unique to every distinct role in a company. Defining what these habits are for each role should be a fundamental act of job design.

For salespeople, high performing Work Habits include making cold calls, holding effective sales meeting, making compelling presentations, sending thank you notes, updating sales management software, sending quality proposals, asking for the deal and ensuring contracts get signed.

For accountants, effective Work Habits include balancing the company accounts each month, issuing invoices, collecting outstanding money, paying creditors, producing monthly financial statements and answering emails only in the morning and late afternoon (to ensure uninterrupted times of focus during the day). A very different set of habits than those prescribed for effective selling.

Why do the details of Pivotal AND Work Habits matter?

Simply knowing that you should exercise every day is almost trite and somewhat useless. But knowing that the OPTIMAL type of exercise for performance in your role is short bouts of high intensity exercise, done at your desk regularly throughout the day, consuming even less time than you’d normally spend at the gym and requiring no special clothes, time off, or special facilities, makes a world of difference to:

  • the actual outcomes you get, and
  • your chances of practicing the habit at all.

The art of ensuring that people do what makes a difference to their performance, starts by designing “Habit Prescriptions” that are clear to understand, that are optimized to increase performance (based on research), and that are easy to fit into their already busy lives.

At Habits at Work, we help employers to define these Pivotal and Work Habits, and to optimize them both for ease of completion by employees as well as for their performance impact.

Now, with these insights in mind, let’s define the “design problem” for employers who wish to become High Performance Employers:

How do you effectively design your workplace to make it easy, natural and enjoyable for employees to practice their Pivotal and Work Habits, in a way that not only has them perform optimally, but that leaves them thrilled with the experience, grateful for the support and highly engaged with us as an employer?

That’s the question we’ll answer in the last of this series of three blogs.

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About the Author
Andrew Sykes
For more information, contact Andrew Sykes at Andrew@habitsatwork.com or read more online at www.habitsatwork.com or www.BRATLAB.com

 

 

 

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 the Author
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.

 

Company Culture

Why Work Culture Directly Impacts Employee Performance

A recent study from researchers at the University of Warwick, cited by Entrepreneur magazine, revealed that happiness makes people 12% more productive. Said the authors of the study, Professor Andrew Oswald and Dr. Daniel Sgroi from the Department of Economics at the University of Warwick:

“Companies like Google have invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37%… Under scientifically controlled conditions, making workers happier really pays off.” Added Dr. Sgroi: “The driving force seems to be that happier workers use the time they have more effectively, increasing the pace at which they can work without sacrificing quality.”

What contributes to this happiness? There can be many factors – from family life, to favorite activities, even literature, music, or movies – but work culture can also play a major role in employee happiness. Work culture is a collective term for a handful of the most important factors that are under an employer’s control, and as such, it is highly relevant for every manager. The underpinnings of a strong company culture include factors related to an employee’s physical health, emotional well-being, mental clarity, and can help give their work a greater sense of meaning. Work culture is rooted in the beliefs and values that an organization establishes, and when these are clearly communicated throughout the organization, they can help boost employee engagement and motivation. Here’s why:

Worker trust is linked with shared company culture

Optimal employee performance depends on the ability of employees to trust their organization. Writing in the Harvard Business Review, Stephen Covey and Douglas Conant assert that employee trust is essential to a company’s financial success. To truly build a company culture around the key value of trust, it is required to, “personally celebrate employees for their contributions.” This climate of trust, supported by recognition, results in a positive company culture, which in turn solidifies your financial standing. Trust can also be established during periodic employee performance reviews, when managers get the chance to listen to their employees and learn what makes them happy, including what they want in a positive company culture.

“Why we work determines how well we work”

This axiom was presented by researchers who studied scores of workers and companies worldwide. If people perceive underlying purpose in the work they do, they perform better. One example given by the authors had two groups of workers that were assigned to analyze medical images. The group that was told the images contained cancer cells spent more time and did higher quality work than the control group who were not given any context for the task. When you convey the importance and coherence of your company’s purpose, you help your employees to feel that their work has meaning. Your company’s cultural values and mission statements play a larger role than you think. Reinforcing cultural values that resonate with your employees on a personal level directly impacts their motivation and drive to perform better at work.

A strong work culture balances out corporate change

“Fast-paced change, uncertainty, and volatility are the lexicon of our work lives,” according to Peter Cheese, the CEO of the Chartered Institute of Personnel and Development (CIPD). Corporations are changing fast in order to keep up with emerging trends, and they need their employees to be agile as well. A strong organizational culture keeps everyone aligned and engaged, so that riding out changes becomes a mutually shared effort rather than a divisive or damaging force. When employees feel left out of the loop or are unaware of the company’s bigger picture, their performance and motivation suffers as a result. Keep your employees informed on changes happening within the organization, so they know what’s ahead for the business and the impact their role has in all of it.

Industry research on the importance of a positive work culture reveals that 87% of organizations agree that culture and employee engagement are among their most urgent challenges. To learn more about developing your company culture, download Achievers’ e-book: All for One and One for All: Uniting a Global Workforce with Company Culture.

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Align Employees

Aligning Your Workforce: One, Two, Three Strikes – You’re Out

Picture this: it’s the bottom of the ninth and bases are loaded. Two outs and you’re down by three. Batter up! That’s you. The worst thing you can do right now is strike out.

You look up at your coach for your play, but … wait, your coach isn’t there.
You glance out the field and realize that your team has no idea what to do next.

Okay. You think. Now what? Read more →

Develop Modern Manager

Five Strategies to Develop the Modern Manager

The Secret Weapon to Driving Employee Success: Your ManagersBad managers are the number one reason employees quit, but good managers have the power to drive results. Performance is 35 percent higher when teams are led by strong management; moreover, engaged employees are also much more likely to stay with the organization, reducing turnover costs.

With these kinds of results on the line, who wouldn’t want to give their managers the tools they need to become great at their jobs?

There are many things organizations can do to help managers do their jobs well. Here are five strategies you can start using today to develop your managers. Read more →