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Two colleagues discuss while looking at reports. Text says Performance Management with Impact

As we consider the key factors that influence and drive effective and robust talent pipeline building, Performance Management is a critical component of this equation. Research has shown a consistent pattern of leading practices and how these will support improved engagement, higher productivity, improved customer satisfaction, improved retention of top talent, and, if effectively applied, provide a platform for high levels of employee listening.

The following illustrates some of the core issues and opportunities when considering performance management and how it can have the greatest impact.

Good News


• Many companies have identified that their Performance Management Practices aren’t delivering the desired results


• “Enlightened” companies are taking steps to make this a critical piece of their Talent Review and Planning Processes


• Successful companies are sharpening their focus on enabling people leaders to have meaningful conversations around performance planning & review


• Functional and line leaders are accepting accountability for up-to-date performance data that supports talent differentiation and better rewards allocation (“pay for performance”)


• Goal Setting processes are becoming “SMARTER…”


• Companies are getting better at cascading and translating organizational goals to employees


• HR Business Partners are becoming more active in coaching and enabling robust performance review processes


• Companies are getting better at using leading automated systems to enable more participation and less administrative burden


• Companies are designing their processes to enable an ongoing feedback loop and get away from a “once-a-year” event…

Not So Good News


• Companies continue to use “Performance Management” primarily to support compensation decisions


• People leaders continue to be ill-prepared for effective discussions, feedback, and planning


• Performance Reviews tend to continue to be a once-a-year requirement


• Goal setting is cumbersome and not connected to a bigger picture


• Blurred lines between the company’s strategic plans and the employee’s job (unclear line of site)


• Process tends to be last minute and pushed through at the end of the year


• Accountability for effective application is vague and not adhered to


• In general, Performance Reviews tend to be an administrative requirement and tend to get “begrudging compliance…”


• HR tends to be the “compliance police” and not the coaches and mentors enabling the process to deliver value


• Practices do not support an effective “pay for performance” philosophy

If you would like to learn more about how Endeavor Management may be able to help, please feel free to reach out to Gerry Gibson at ggibson@endeavormgmt.com

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Advisors and Consultants, Experience Management, Experience Management Healthcare, Healthcare Employee Experience, Leadership Development and Coaching, Leadership Effectiveness, Organizational and Team Effectiveness, Workforce Development

Gerald Gibson Human Capital Advisor

Gerry has held senior level roles with board involvement and global accountability for leading, coaching and developing Talent, Change Management and Organizational...

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