Full Transcript for The Secret to Performance Reviews that Inspire People

and others that have relied 28 00:02:15.229 --> 00:02:20.060 on standardized scoring have an inspired people. They weren't human and that's how we 29 00:02:20.180 --> 00:02:24.419 see the market shifting today. If you were to stop and ask someone what 30 00:02:24.539 --> 00:02:29.539 their perception is of a performance review, historically speaking, they'd say that half 31 00:02:29.539 --> 00:02:34.129 the conversation is reflecting on the past, what you've achieved, what you could 32 00:02:34.129 --> 00:02:36.930 have done better, and fifty percent of its focused on the future. But 33 00:02:37.090 --> 00:02:40.370 in the markets that we serve, and we primarily work with modern, midsized 34 00:02:40.610 --> 00:02:47.199 multinational businesses, we see a shift towards more than eighty twenty ratio. Conversations 35 00:02:47.360 --> 00:02:51.199 are being spent for twenty percent. Scent is reflecting on the past and what 36 00:02:51.280 --> 00:02:54.560 you've achieved, but moreover, the bulk of the conversation focuses on the future 37 00:02:54.919 --> 00:03:00.949 and strong companies and leaders are really starting to spend that eighty percent talking about 38 00:03:00.990 --> 00:03:04.669 where does the employee want to go? How does that intersective for the company 39 00:03:04.789 --> 00:03:07.189 is going? How can we as a company, in me as a manager, 40 00:03:07.349 --> 00:03:10.189 help you grow and one of the personal strengths that you want to invest 41 00:03:10.229 --> 00:03:14.780 in? The conversation feels a lot more like mentorship and it's a lot more 42 00:03:14.819 --> 00:03:20.099 about growth than assigning or ranking people within the business and seeing them for the 43 00:03:20.139 --> 00:03:23.340 individuals that they are. It is just so very different from what I think 44 00:03:23.340 --> 00:03:28.650 a lot of employees are used to and I think you know that is partly 45 00:03:28.770 --> 00:03:32.490 why there's a lot of angst surrounding the review process and if employees are not 46 00:03:32.530 --> 00:03:36.849 feeling anks, there's a lot of cynicism around it. What do you think 47 00:03:36.889 --> 00:03:39.449 about that? Yeah, this shouldn't create anks. This isn't a test. 48 00:03:39.770 --> 00:03:45.080 This experience shouldn't be negative for the employee. It's not a way to grade 49 00:03:45.159 --> 00:03:49.159 or rate them. By focusing the conversation on the potential for the future, 50 00:03:49.360 --> 00:03:54.159 it actually becomes an incentivising and motivating conversation and, moreover, drives employee engagement. 51 00:03:54.360 --> 00:03:58.909 This is a hundred percent tied to employee engagement and that was always the 52 00:03:58.990 --> 00:04:01.830 intention and the purpose of performance reviews, but the way we have executed them 53 00:04:01.870 --> 00:04:04.949 in the past it in a line to that. And as the models shift, 54 00:04:05.349 --> 00:04:10.659 we want employees to

come into conversations not with worry and fear but with 55 00:04:10.780 --> 00:04:15.580 optimism, and want them to be invested and excited to share here's what I 56 00:04:15.659 --> 00:04:19.379 really did well, and to be transparent and open enough and confident enough to 57 00:04:19.420 --> 00:04:23.459 talk about where they feel they could have improved. I'll also say that, 58 00:04:23.579 --> 00:04:27.769 you know, good leaders are giving feedback day today, week to week, 59 00:04:27.810 --> 00:04:30.889 in the formal review session, whether it be conducted annually or semi annually, 60 00:04:31.290 --> 00:04:35.689 should never catch an employee off guard. If the leaders are committed to continuous 61 00:04:35.730 --> 00:04:42.199 feedback, pus an opportunity to memorialize and document those strengths and that career path 62 00:04:42.480 --> 00:04:46.160 and direction that the employee wants to go and a chance to have an open, 63 00:04:46.480 --> 00:04:49.160 dedicated conversation around them. Yeah, so, as you said, kind 64 00:04:49.199 --> 00:04:56.949 of memorializing and documenting what a manager and employee would have been talking about throughout 65 00:04:56.949 --> 00:05:00.949 the entire year. So again, really important that nothing is catching anyone by 66 00:05:00.110 --> 00:05:06.899 surprise. Now I think that another reason that employees feel this stress is that 67 00:05:08.100 --> 00:05:13.139 compensation is tied to the performance review process. So if you're doing an okay 68 00:05:13.180 --> 00:05:15.379 job, you'll get your five percent, if you're doing great, if you 69 00:05:15.459 --> 00:05:19.459 rank high on that numerical system, you're going to get your ten percent or 70 00:05:19.500 --> 00:05:24.089 whatever it is. So that is nerve racking and I think contributes to the 71 00:05:24.209 --> 00:05:27.689 angst that we talked about. Tell me your thoughts. Yeah, one of 72 00:05:27.769 --> 00:05:30.529 the trends were starting to see amongst the companies that we work with is a 73 00:05:30.649 --> 00:05:36.120 separation of the compensation review cycle from the performance conversations, and the reason we 74 00:05:36.199 --> 00:05:41.879 see that happening is because, if the ultimate intention Chin for these performance conversations, 75 00:05:42.040 --> 00:05:46.279 we taking place is about being honest and authentic and open and a bit 76 00:05:46.319 --> 00:05:50.110 vulnerable. Employees might not be as open and honest with their managers as you 77 00:05:50.149 --> 00:05:55.509 would want to inspire them to be if they feel they could be financially penalized. 78 00:05:55.550 --> 00:05:58.870 If someone's thinking, if I admit to this area where I'm weak and 79 00:05:58.910 --> 00:06:00.269 I want to develop, is it going to affect me? Am I going 80 00:06:00.269 --> 00:06:04.899 to be financially penalized for not having strength in this area? It's obvious that 81 00:06:05.019 --> 00:06:11.300 managers have to take performance into consideration when you're working through a compensation review cycle, 82 00:06:11.420 --> 00:06:16.420 but separating the cycles really benefits the employees and employers as well. Allows 83 00:06:16.699 --> 00:06:23.089 space in time for a more objective perspective about how to take that decision and 84 00:06:23.209 --> 00:06:26.970 what decisions to take, and it allows the employee the freedom and the confidence 85 00:06:27.050 --> 00:06:30.889 to not feel that there's a direct connection between what's discussed in that Oneonone, 86 00:06:30.009 --> 00:06:34.920 very personal conversation and that financial decision. Yeah, I can imagine it would 87 00:06:34.959 --> 00:06:40.480 certainly lift the burden that people feel going in. So there's something else that 88 00:06:40.600 --> 00:06:44.319 I think about, which is timing. We touched on this a little bit, 89 00:06:44.399 --> 00:06:47.269 but to dive in it just seems so arbitrary because it has nothing really 90 00:06:47.389 --> 00:06:51.910 to do with what the individual is up to at that moment in time that 91 00:06:53.029 --> 00:06:56.389 the evaluation, the formal review, is happening. So it's sort of like, 92 00:06:56.550 --> 00:06:59.990 all right, January is here, it's time to do our reviews, 93 00:07:00.110 --> 00:07:03.540 and we do that. But imagine two weeks after the review and in play 94 00:07:03.579 --> 00:07:08.579 launches some initiative that, you know, changes the world, up ends the 95 00:07:09.060 --> 00:07:13.300 status quo, disrupts the industry and well, it's too late. You know, 96 00:07:13.699 --> 00:07:15.649 we already did your review. So maybe we'll just wait for your next 97 00:07:15.689 --> 00:07:20.209 stroke of genius and hope it aligns with our next arbitrary timeframe for the review 98 00:07:20.290 --> 00:07:24.329 process. So I don't know, I've thought about that quite a bit and 99 00:07:24.689 --> 00:07:27.410 wonder what you think. Yeah, I think that's a hundred percent true. 100 00:07:27.449 --> 00:07:31.120 One of the challenges that were working against is this notion that performance evaluation should 101 00:07:31.160 --> 00:07:34.879 happen on a set timeline, like once a year or once every quarter. 102 00:07:35.319 --> 00:07:40.399 We see a lot of organizations thinking about how the timing factors into things, 103 00:07:40.439 --> 00:07:43.560 but the truth of the matter is you've got that recency issue where you're only 104 00:07:43.600 --> 00:07:46.389 as good as what you've done in the past two weeks. When your manager 105 00:07:46.389 --> 00:07:48.589 has been sitting down and really thinking about your accomplishments. You know, the 106 00:07:48.709 --> 00:07:54.990 new world of work really requires place for constant feedback and again we see this 107 00:07:55.189 --> 00:07:59.899 in the the fast growth companies we work with. Employees look for ongoing conversation

108 00:07:59.980 --> 00:08:03.300 and they've got it right. You Know Gen Z and millennials. They need 109 00:08:03.540 --> 00:08:07.300 constant and repeated feedback and this is important. This is the right way to 110 00:08:07.420 --> 00:08:11.819 give feedback. Being able to give intelligent insights at the right point in time 111 00:08:13.089 --> 00:08:16.410 really helps get the message across much more effectively. The one on one conversation 112 00:08:16.610 --> 00:08:20.370 that you might have once a quarter with your employees might be one of many 113 00:08:20.490 --> 00:08:24.490 things that you're doing, but those week to week feedback points, whether it 114 00:08:24.610 --> 00:08:28.439 be shoutouts or bottoms up reviews or emails that you're sending to your employ ease 115 00:08:28.560 --> 00:08:33.840 to recognize accomplishments. This notion of always on recognition and feedback should be part 116 00:08:33.840 --> 00:08:37.080 of the culture of any business. Yeah, and I like what you said 117 00:08:37.159 --> 00:08:41.750 their recency issue. So it's almost like in a traditional review process, that 118 00:08:41.870 --> 00:08:46.309 you're only as good as your last two weeks. So it makes all the 119 00:08:46.389 --> 00:08:48.429 sense in the world. That would be a broken approach and that the kind 120 00:08:48.470 --> 00:08:54.029 of new way forward eliminates that issue. So very interesting point. All right, 121 00:08:54.149 --> 00:08:58.139 so here we are. We are still in the midst of all sorts 122 00:08:58.179 --> 00:09:03.059 of uncertainty. Companies are in remote, in hybrid, thinking about going hybrid, 123 00:09:03.100 --> 00:09:07.500 undecided, decided, you know, across the spectrum and employers have a 124 00:09:07.580 --> 00:09:11.769 lot of Adjata about the fact that if they are remote, if they are 125 00:09:11.850 --> 00:09:16.370 hybrid, they can't see their employees if their work from home. And if 126 00:09:16.450 --> 00:09:20.169 I can't see my people, how in the world can I evaluate their performance? 127 00:09:20.769 --> 00:09:24.840 So I know you've done some work around this. Tell me where you 128 00:09:24.879 --> 00:09:28.080 land. Yeah, this notion of if I can't see them, they're not 129 00:09:28.200 --> 00:09:31.559 working, that notion is so rampant and we really need to change. We 130 00:09:31.639 --> 00:09:35.559 need to change the way we lead and the way we manage and we have 131 00:09:35.759 --> 00:09:39.429 to change the way that we evaluate people. We have to go back to 132 00:09:39.029 --> 00:09:46.190 the drawing board and focus on setting measurable goals and Objectives for people and using 133 00:09:46.309 --> 00:09:52.190 that as a barometer for success. If your employees understand what's expected of them 134 00:09:52.269 --> 00:09:56.340 and you've communicated that effectively as a leader and you're tracking with your employees their 135 00:09:56.379 --> 00:10:00.580

progress against those goals and objectives, it shouldn't matter whether they're doing it and 136 00:10:00.700 --> 00:10:03.940 between nine and twelve in the afternoon or between nine and twelve at night, 137 00:10:03.980 --> 00:10:07.889 obviously boring meetings at all of those other activities that you expect employs to be 138 00:10:09.009 --> 00:10:13.809 involved in. The notion of measuring two objectives is really important and it ties 139 00:10:13.889 --> 00:10:18.730 directly back to the evaluation. It makes it so much more pointed and clear 140 00:10:18.889 --> 00:10:24.759 to employees on how they will be evaluated and it also gives leaders a better 141 00:10:24.799 --> 00:10:30.639 vehicle to understand whether or not an employees performing at below or above expectations. 142 00:10:30.759 --> 00:10:35.870 Yeah, you know, and you mentioned working with modern small to medium companies 143 00:10:35.909 --> 00:10:39.990 and I think you know, I do see a lot of modern companies really 144 00:10:39.309 --> 00:10:45.149 letting go of the need to see unemployee and looking instead at output. So 145 00:10:45.309 --> 00:10:48.110 cares that they set ahead of time. So I do have the gut sets 146 00:10:48.230 --> 00:10:52.019 that is happening in some measure shifting gears a little bit. Tell me, 147 00:10:52.419 --> 00:10:58.059 what are some pitfalls that HR leaders need to avoid when it comes to leading 148 00:10:58.259 --> 00:11:05.730 implementing the Performance Review Process? Yeah, one common mistake that we find as 149 00:11:05.809 --> 00:11:09.929 oftentimes h our leaders are so focused on implementing the program and the process, 150 00:11:11.129 --> 00:11:16.490 the plan and the documentation and setting the deadlines and communicating internally. They missed 151 00:11:16.610 --> 00:11:24.159 the very important step of impassing touring managers and helping their managers fully understand and 152 00:11:24.399 --> 00:11:30.240 take advantage of this resource that's available to them. It's not just about rolling 153 00:11:30.279 --> 00:11:35.830 out this program from an execution standpoint, but recognizing that managers are the key 154 00:11:35.950 --> 00:11:41.269 to success. They have tremendous influence over how successful these programs are. One 155 00:11:41.309 --> 00:11:46.700 of the pitfalls that we often find HR leaders falling victim to is focusing more 156 00:11:46.899 --> 00:11:52.980 on the process and the execution than on the people aspect of the performance evaluation 157 00:11:54.059 --> 00:11:58.220 programs. Whilst it's very important to train your managers on how to use the 158 00:11:58.340 --> 00:12:03.850 system and to communicate effectively across the business the deadlines, the plan, what 159 00:12:03.970 --> 00:12:09.250 the expectation is, one of the most critical steps is engaging and training your 160 00:12:09.330 --> 00:12:16.120 managers on the people aspects of this process and how to think about driving conversations 161 00:12:16.200 --> 00:12:20.840 that inspire and motivate and making sure that there's equal investment on that type of 162 00:12:20.919 --> 00:12:24.679 training, on Leadership Training, on the soft skills, on empathy, as 163 00:12:24.759 --> 00:12:28.960 much as the process and system training. That pitfall is something that, if 164 00:12:30.029 --> 00:12:35.909 not tended to, could really derail a really effective internal performance evaluation program and 165 00:12:35.230 --> 00:12:43.070 I can understand why the logistics of implementing the program deadlines would be the focus, 166 00:12:43.350 --> 00:12:46.139 just because there's there's so much involved in this. It's a very much 167 00:12:46.139 --> 00:12:52.100 a hurting cats kind of a situation. But your point is definitely critically important. 168 00:12:52.179 --> 00:12:56.659 You know, if we are moving toward a more human approach, the 169 00:12:56.899 --> 00:13:01.330 work of helping managers be more human and providing that training to be more empathic 170 00:13:01.529 --> 00:13:07.330 and the review process is just the importance can't be underestimated. I definitely think 171 00:13:07.370 --> 00:13:11.929 that is a key takeaway. And with regard to take aways, I feel 172 00:13:11.970 --> 00:13:15.600 like now would be a great time to move into our next segment. It, 173 00:13:15.759 --> 00:13:18.639 which is called the two minute takeaway. Doesn't have to be two minutes. 174 00:13:18.679 --> 00:13:22.639 It rarely is. But Rhann and tell me if you could share a 175 00:13:22.799 --> 00:13:28.149 few key points that you want to underscore reiterate about a more modern approach to 176 00:13:28.389 --> 00:13:31.789 performance reviews. What would those be? Yeah, so I'll start with my 177 00:13:31.909 --> 00:13:37.990 last your managers are the key ingredient to success. Helping them understand the process 178 00:13:37.110 --> 00:13:41.149 is half the battle or half the equation. The other half is helping them 179 00:13:41.190 --> 00:13:45.539 understand. The second is that feedback should be ongoing and ingrained in your day 180 00:13:45.580 --> 00:13:50.220 to day interactions. The notion of semi annual cycles are relevant and there a 181 00:13:50.259 --> 00:13:54.850 great moment to stop and assess that feedback and continuous engagement with employees on performance, 182 00:13:56.169 --> 00:13:58.929 on goals and objectives should be happening throughout the year. The final point 183 00:14:00.009 --> 00:14:03.450 is that in the modern world of work it's really imperative to focus on outcomes, 184 00:14:03.809 --> 00:14:07.610 not outputs. So back to the point of the conversation we had with 185 00:14:07.769 --> 00:14:11.960 how do I manage effective productivity and performance with the remote workforce? If you 186 00:14:13.080 --> 00:14:16.840 help them understand what's expected of them in terms of what they

will deliver to 187 00:14:16.960 --> 00:14:20.440 the business? That level of expectation avoids the need to be able to see 188 00:14:20.559 --> 00:14:24.909 your people and outcomes or what drives the business forward, not outputs. That 189 00:14:26.149 --> 00:14:30.789 concept can give some real rest assurance to people who are feeling nervous about not 190 00:14:30.830 --> 00:14:35.269 being able to see their employees physically come to the office or log in. 191 00:14:35.389 --> 00:14:37.580 I also just want to add my takeaway something that stood out to me, 192 00:14:37.820 --> 00:14:41.820 which is, you know, eight and twenty being that magic ratio where eighty 193 00:14:41.899 --> 00:14:46.539 percent of this modern way of doing evaluations is about the future and twenty percent 194 00:14:46.779 --> 00:14:50.539 is about the past. I think that's such a powerful thing to keep in 195 00:14:50.659 --> 00:14:56.169 mind and it is an antidote to the fear and cynicism surrounding the performance of 196 00:14:56.250 --> 00:15:00.450 valuation. So I really want to thank you for bringing that to light and 197 00:15:00.690 --> 00:15:03.129 I like to that it's a good measurable. We've got some numbers that hurt 198 00:15:03.250 --> 00:15:09.200 to follow with that eighty twenty ratio. So, Rannon, if our listeners 199 00:15:09.279 --> 00:15:11.360 wanted to reach out to you, how should they do so? Linkedin is 200 00:15:11.480 --> 00:15:16.399 probably the most effective way to track me down. Happy to respond there. 201 00:15:16.440 --> 00:15:20.879 And, of course, for a website at high Bob hibobcom. Fantastic. 202 00:15:20.000 --> 00:15:24.350 And because of your extremely cool name, that can give us a spelling, 203 00:15:24.389 --> 00:15:28.230 as so people know. This is why did offer email. The name is 204 00:15:28.269 --> 00:15:35.669 spelled our H I a n o n and staples STAP Elias Cool. Tell 205 00:15:35.740 --> 00:15:39.139 us the origin of your name, because I thought it was so cool when 206 00:15:39.139 --> 00:15:43.340 I heard about it. I was named after very famous song by fleetwood Mac. 207 00:15:43.820 --> 00:15:46.100 Isn't that cool? I think that's so cool. So, Rhannon, 208 00:15:46.379 --> 00:15:50.409 can't thank you enough. I think this has been so illuminating. I've certainly 209 00:15:50.450 --> 00:15:56.129 learned a lot about this and about a new way forward. So really appreciate 210 00:15:56.330 --> 00:15:58.929 your expertise that you've lent today. Thank you so much. Definitely, it's 211 00:15:58.929 --> 00:16:03.250 been a great conversation, and so to our listeners, thank you as well 212 00:16:03.799 --> 00:16:07.639 for joining us today. I always love to have you so reminder to subscribe 213 00:16:07.679 --> 00:16:14.200 a were available on all your podcast players of choice. Just visit technically peoplecom 214 00:16:14.399 --> 00:16:18.190 and join us as well on the ongoing conversation that we're having on linked in. 215 00:16:18.950 --> 00:16:25.950 So thank you again and we will talk to you next week. Whether 216 00:16:26.070 --> 00:16:30.629 you're looking to fill opportunities or find them, built in hows you've covered. 217 00:16:30.029 --> 00:16:36.179 If you're seeking to meet aggressive hiring goals, will help you attract sought after 218 00:16:36.340 --> 00:16:40.419 tech talent you might not otherwise reach. And if you're on the market for 219 00:16:40.539 --> 00:16:45.379 a career change, visit our site to explore exciting jobs with our customers and 220 00:16:45.620 --> 00:16:51.289 even with built in find talent, find opportunities built incom