Here is the final entry
in a series of five short articles addressing some of the
more common compensation issues facing HR professionals today.
The fifth of the Five Biggest Mistakes is Performance Management
Another New Form?
your organization's Performance Management System does NOT mean adding
color to your forms and adding more detailed explanations. It's not the
form - it's the process!
hints to improve your Performance Management system immediately:
- Realize that good performance management is not an annual
event - it's an ongoing process.
active sponsorship (not just approval) from senior management. If you
only have approval, it's an HR program -- that will die a slow and
painful death. If you have active sponsorship, it's the CEO's program
and HR is simply making it happen.
- Train evaluators, then hold
them accountable for getting evaluations done timely and
most of your employees are rated above average (or whatever term
indicates more than doing a good solid job,) consider using a forced
ranking for a year or two to regain control. (Forced raking does not
mean you have to terminate the lower performers; it is simply a tool to
ensure the organization can get back on track, i.e., most of the
employees should be clustered around the 'doing a good solid job'
An example of forced raking for a 5-level ranking system:
- 5 (Highest) - 8% of your organization
- 4 - 20% of your organization
- 3 (Good solid job) - 60% of your organization
- 2 - 10%
- 1 (Lowest) - 2%
Next month, we'll begin
an amusing look at surveys.
Focus on performance
not the form.
Routinely work on performance metrics. If you can measure it, you
can get results and communicate it well.