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Performance Management Underperforming
Only three out of ten US workers agree that their company's performance management program actually does what it's intended to do: improve performance. So says a recent survey by human capital consulting firm Watson Wyatt.
Even fewer - two out of ten workers - say their company helps poorly performing workers improve, although performance management programs do better at more traditional functions such as appraising performance and assisting with pay decisions.
The survey of 1,190 workers found widespread cynicism about systems. Whereas a majority of employees feel their own performance appraisal is accurate (61%) and that employees with better reviews get better raises and bonuses (54%), less than 40% agree that the system establishes clear performance goals, generates honest feedback or capitalizes on technology to streamline the process.
| Workers'
Views on Performance
Management
|
|
| Aspect
of Performance
Management |
|
Strongly
Agree/Agree |
| 0% |
| Program
helps poor
performers
improve |
19 |
| Program
has helped
me improve
my performance |
30 |
| Program
establishes
clear performance
goals for
current year |
35 |
| Program
does a good
job of giving
honest feedback |
36 |
| Program
uses technology
to streamline
performance
management
process |
38 |
| Program
rewards better-reviewed
employees
with better
raises/bonuses |
54 |
| I
was evaluated
accurately
in my recent
performance
appraisal |
61 |
|
|
Standard-setting and enforcement are often felt to be lacking. Only 54 percent of workers feel that their company sets high performance standards and only 44 percent that people are held accountable for their performance.
'The survey results clearly indicate that corporate America's performance management systems need fixing', said Scott Cohen, Ph.D., National Director for Talent Management at Watson Wyatt. 'Unfortunately, too many organizations view their performance management programs as 'organizational wallpaper.' They exist in the background and aren't expected to add value'.
Cohen's advice to managers and leaders is as follows:
- Get rid of the HR-speak and make sure the performance management processes use the language of the business
- Make the tough decisions. Recognize star performers and confront poor performers as soon as possible but no later than their next formal review.
- Burn paper forms. User-friendly automation is better, faster and cheaper. Best of all, it helps re-engage managers and employees who have grown weary of burdensome PM systems.
Copies of the survey are available at www.watsonwyatt.com/research/resrender.asp?ID=ONL011&page=1
In tomorrow's DRNO: How the UK's Luton Borough Council doubled response to its employee survey.
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