Performance reviews are not fun for either the employee or the reviewer, but in the past were viewed as a necessary evil of working in an organization.  The fact is, however, that they are not a requirement except in the case of some governmental or union employees.  The other fact is that they take an enormous amount of time and create lots of stress for everyone.  So why do them?
An article in Legal Section of the Society for Human Resource Management site brings up some interesting points.  The April article by Judith Droz Keyes discusses both the reasons for and the pitfalls of performance reviews.
The formal review system was developed predominantly as a defense against discrimination lawsuits in the 50’s and 60’s, to justify terminations and disciplinary actions.  They were also supposed to serve as an honest and accurate assessment of an employee’s job performance relative to the employer’s standards and, to the performance of the team.  They were intended to motivate the employee to achieve great things and improve the morale of the company. 
The problems with these evaluations are many.  First and foremost, most supervisors are not good at reviewing their staff, and tend to avoid confrontation.  Therefore the employee may have been reprimanded in some way during the year, and at review time will get a satisfactory rating, so as not to cause waves.  In other cases, the language used in the review is not clear – saying “I would like to see” rather than “this job requires”.  In addition, most supervisors are not held accountable for the quality of their review process, so there is no consequence, until the employee is let go and a lawsuit is file.
That brings up the second problem.  Many times the review process is designed more as a career path management tool than a disciplinary tool and so problems with employees may not be accurately documented in the process.  Then, when an employee files a “wrongful termination” suit, they cite their years of positive reviews as evidence.  Sadly this means that the supervisor must now always look at the process as a potential legal pitfall rather than a helpful tool for management.
Yet another problem with the process is the lack of timeliness of the feedback.  Management should be addressing problems or achievements as they occur, rather than waiting a prescribed amount of time to give praise or criticism.  As a supervisor I had to keep careful notes during the year to avoid the “feeling of the moment” – the employee had just done something to irritate me that might affect my attitude during the review.
Finally (though there are probably more issues I haven’t thought of) there is the legal side of employment which says you need to be careful about commenting on things such as “professional attitude”, excessive absences, or cases where there is a conflict with the supervisor.  Any comments must be weighed against the protected rights of the individual employee, which tends to lead to a very bland review.  It is very difficult to deal with an employee with serious health issues when their position is vital to the organization and slows down the whole business process.  A supervisor must be very careful to comment in language that addresses the goals of the company and how they are not being met…or some other cleaver way to discuss the problem.
So if not performance reviews, what?  As mentioned earlier, timely addressing of the issue, either positive or negative, is much more useful for both employer and employee.  Record of these discussions need to be documented just as in a review, especially when compensation is tied to performance.  In place of a review, a “career plan” showing goals for the employee to work toward would be much more useful.  The goals should be developed through mutual input and allow the employee to show how they would like to grow in the business. 
Whether you are a manager or part of the staff in an organization, it is a challenge to keep dialogue open and keep everyone on the same page.  Good luck!

Tags: change management, employee feedback, employee morale, job seeker attitudes, performance management, team building

Recruiting firms and companies themselves are noticing that talent poaching, especially in the technology industry, is becoming a big issue this year and will be in the future.  Talent poaching means one company snags a competitor’s talent with the lure of hirer salaries or other perks.  Bloomberg Businessweek reported recently that poaching in tech companies is an epidemic.  Firms use email or LinkedIn to contact passive candidates.   Bottom line is this can affect YOUR company’s future plans significantly.

First let’s look at why.  The economy is reportedly recovering, and sections of the technology industry are part of that recovery.  Computer hardware and software, as well as renewable energy businesses are planning for growth.  Meanwhile, the pool of qualified talent in science, engineering and math skills is not going to be able to meet our predicted demands.  Companies also need experienced leadership to take them to the next level.  Logically hiring managers will look at the existing workforce to try to fill those gaps. 

An even bigger issue is that most organizations aren’t prepared to address this threat.  How can you prevent your top talent from leaving for what they perceive as greener pastures?  The first step is to take a good look at which of your employees might be a target for poaching.  Then look at what your company can do to avert the threat. 

In the current economic climate, giving folks a raise isn’t always an option, but money isn’t always the answer.  As long as the compensation is competitive in the industry, there are other things that might encourage loyalty to the current employer. 
It sounds like a broken record, but flexible work hours is one of the things employees really appreciate.  One candidate I know is wanting to make a change, but the thought of losing 4 weeks vacation a  year and flexible work hours holds him back. 

Another possibility is to assign your star performers to exciting and stimulating projects.  A challenging, interesting assignment can be as satisfying as a raise for some. 

There is always to option of asking employees to sign noncompete agreements or other legally binding contracts, but that’s not always a morale builder, and has to be carefully crafted.  High tech companies with a lot of research going on may be an instance where this is important. 

In the end, your successful and talented staff are an asset to protect as you plan for your own growth and success.  Include them in any strategic planning as you go!

Tags: change management, employee morale, Hiring Trends, industry news, recruiting

As we all have heard, corporate profits dropped significantly (some sources say by 1/3) in the latest economic downturn, and companies were cutting and slashing wherever they could, including eliminating some product or service lines.  Because  of the belt tightening companies have become very efficient at delivering their product or services with fewer resources.  As a result, second-quarter 2010 profits for industrial companies in the S&P 500 stock index were $189 billion, up 38% from a year ago.  The outcome in many cases was as much a result of cost savings as revenue growth.
But..how does that affect the staff that got to keep their jobs?  And what are the long-term effects of this new way of working?
An article in the Society for Human Resource Management news (1/7/2011) highlights some of the problems in doing more with less.  Companies know they cannot continue cost-cutting to success, but for the last two years that was the major tool in the toolbox. 
Among the problems mentioned in the article are:  Diminished capacity, capability and agility, misaligned organizational structure, broken business processes and declining workforce engagement.  These issues can greatly affect future success.
Diminished capacity refers to not having enough staff, which can directly affect the company’s cost structure and ability to deliver the goods.  In well-staffed organizations there is the ability to shift people rapidly to respond to shifting business needs.  In a reduced-staff organization the employees have to focus on their immediate responsibilities, leaving little time to help in other areas.  Obviously the inability to respond will affect the company’s ability to compete.
Misaligned Org Structure can, as a result of rapid reorganization, leave an organizational chart that no longer is aligned to support the business. There are resulting gaps in roles, work process, accountabilities and information flow.  Structural gaps also occur when companies eliminate middle management positions without eliminating the work, forcing employees to take on added responsibilities.  Employees unprepared for management issues often end up “winging it” to the detriment of the company.
There are also broken business processes, partly as a result of prior reliance on long-term employees for “tribal knowledge” of the operation.  By failing to document or address the broken processes the companies can lose core efficiencies – and have to re-invent the wheel.
Eventually the workforce becomes disengaged.  In the short term everyone was glad for the job, and willing to pitch in.  It has become obvious, however, that this  situation is going to continue for quite awhile.  Not only that, but these loyal employees aren’t seeing monetary rewards for their efforts.  These employees are hunkered down until new opportunities arise, and then some organizations may lose a lot of valuable talent.
Unless companies address the problems created by the downsizing, they will start to lose the advantages gained by the initial cuts.  They need to be able to manage the new structure and reevaluate skills needed to stay competitive – and be ready for the next wave of new business!

Tags: change management, employee morale, Hiring Trends, industry news, job seeker attitudes, performance management

Various publications continue to predict that we will not see huge economic recovery gains in the new year.  One of the steps companies and employees can take to improve their business success is to improve efficiency within the work groups. 
An article in December 2010 HR Magazine talks about “slackers” and how to better manage them.  Adrienne Fox writes about workers who know how to be adequate performers without pushing too hard.  She defines “slackers” as people who know they could be much more productive but make a conscious decision not to be.  One consultant group survey showed that 44% of employees admitted that they knew how to increase effectiveness but didn’t.  One HR manager at the University of Oklahoma stated that the lack of commitment to the organization tended to result in more counterproductive work behaviors.
Various factors affect employee commitment.  Sometimes the worker doesn’t understand the job clearly.  Others see co-workers slacking off without consequences and become disheartened.  In other cases there may be a lack of resources to do the job well.  There may also be a situation where workers feel efforts are not matched by the rewards offered, and so “make do”.
Most of us know someone that we went to school with that was able to make excellent grades with little effort.  In the education system many of the good students end up bored or unmotivated because they weren’t challenged, or because no one seemed to care about the results they delivered.  These same talented people may end up in a job that doesn’t keep them interested.
In my workplace experiences, the leaders I worked the hardest for were ones I respected and that had a clear vision of what to do and how to do it.  They kept me involved through their leadership skills and their ability to engage others.  In some jobs, the situation was so frustrating or the politics so overwhelming that I did what I had to and started looking for a way out!
Solutions offered on how to manage the slacker range from motivational efforts to get them committed to the goals, or to weed out those that are just plain lazy.  In many cases the individual is accustomed to being rewarded for natural talent rather than effort or commitment, and may give up when the going gets tough.  It is always the manager’s challenge to identify and deal with these employees.   If not, the end result can be a demoralized workforce, or one where all the hard workers leave for better opportunities.  Such is the agony of management!

Tags: change management, effective learning, employee morale, performance management

As we are all aware, the jobless rate hasn’t dropped much in the last year. Hiring is happening, but piecemeal, and for specific talents. So, one way to set your target is to watch industrial/business news about what positions have been difficult to fill.

An article in the SHRM Magazine, June 2010, highlights a projected severe shortage in workers for the utilities industries. According to the article, electric power industry companies estimate that 30-40% of its 400,000 workers will be eligible for retirement in the next two years. These positions range from executive level to skilled craft workers and may create a huge demand for people to fill these slots.

HR folks in all utilities have been aware of this issue for years, but there has been a lack of future workforce planning to make sure the right people are available to meet the need.

One company in this industry, Southern Co. built a statistical model that highlighted particular hot spots..technicians, system operators, control system engineers, water and wastewater operators and operations management. So – hiring ahead is part of the plan.

There is, however, a problem finding qualified replacements for the industry– inadequate training and education of workers. Companies are even willing to train on the job but the candidate needs to be science-savvy and a high school graduate.

Another industry that will need (and does now) more skilled workers is the healthcare world. There are not enough trained nurses and techs to fill the needs now. One nursing educator in southern California said most of her students were preparing for a second career. The healthcare insurance industry will also be adding folks as more of the population obtains formal insurance coverage.

Job seekers need to check business/hiring surveys put out by local departments of labor or professional organizations. Educational institutions will also have hiring and salary information for the area. Then, get the tools you need to fill the jobs there are.

Tags: candidates, change management, hiring process, hiring talent, industry news, job seeker