"Fewer Americans are satisfied with all aspects of their employment, and no age or income group is immune."
That is according to a Conference Board survey of 5,000 households. Those under age 25 had the highest level of dissatisfaction ever recorded by the survey for that age group. The report shows that dissatisfaction negatively affects employee behavior and retention, and that affects any company's success.
The state of performance management is bleak: A Towers Watson survey of 200 executives at mid- and large-size U.S. companies revealed that only 23 percent have a formal process for talent management. Only 14 percent use metrics to analyze and track their internal talent pools and connect that information with performance data.
Another study by the Corporate Executive Board's Learning and Development round table analyzed survey responses from nearly 20,000 employees and managers. Only 30 to 40 percent of employees said that their managers communicate performance standards and provide fair and accurate feedback in order to help them better do their jobs.
Are Motivation and Satisfaction Really Tied to Performance Management and Development Standards?
Yes. Studies show that managers who improve their effectiveness in employee development by only 20 percent can increase employee performance by about 5 percent. It translates this way: A company with a sales force of 2,000 employees who each average $1 million in annual sales can increase company-wide annual sales by about $100 million.
The widespread realization is that driving better performance depends on effective deployment, development and engagement of a range of people across an organization.
The Gallup Organization initiated a multi-year research project to try to define a workplace where employees were satisfied with their jobs. Using data from 200,000 employees and 36 organizations in 21 industries, five themes emerged: retention, productivity, profitability, customer loyalty and safety.
The study also measured employee desire for learning and growth; understanding the mission and purpose of the company; and leader encouragement for development. Among the elements cited as a key to retaining employees:
- Clarify expectations to employees.
- Give employees opportunities to focus on their talents and do what they do best.
- Provide opportunities for employees to learn and grow.
Trinka's findings show that managers who become more knowledgeable about employee performance and provide fair and accurate feedback on performance strengths can significantly improve individual performance. Discussing weaknesses is also important --- but with the focus on specific suggestions for improvement or development, which improves team member performance.
From the Ugly Duckling to the Beautiful Swan
The following are ways in which organizations can improve performance management.
1. Upper management can set the tone for evolving a culture of development. These members of the organization are good role models. Rather than viewing performance management and development as an expense, consider it an investment that returns dividends in the form of employees who are more committed to the organization and willing to expend the effort necessary to do the job.
2. Create an environment that involves continuous coaching and performance dialogue within work teams. Vital Learning teaches that managers should use positive performance feedback to encourage self-motivation among team members. Another skill for leaders to develop is to encourage and obtain team member participation. Manager-employee relationships improves, day-to-day productivity increases, and individuals and teams offer ideas that result in groundbreaking improvements.
3. Involve employees in a higher purpose. Employees need to understand the organization's mission and vision and clearly comprehend their roles in achieving these. They must see how their work on the job contributes to their performance management. This makes work more meaningful and satisfying.
4. Hold people accountable by establishing clear performance expectations with the goal for employees to contribute to the organization. Another Vital Learning technique teaches leaders to work with employees by developing performance standards that are S.M.A.R.T.-based:
- Specific
- Measurable
- Attainable
- Results-Oriented
- Time-Framed
5. Align the performance culture with engagement strategies, job design and reward systems to maximize motivation. Sonoco created a pay-for-performance system that establishes clear links between performance and rewards based on individual and group measurements. Employee satisfaction and engagement improved markedly. In 2005, Sonoco was named by Hewitt Associates as one of the top 20 talent management organizations in the United States.
Final Thoughts
Developing performance management and setting employee development standards may not be completely ugly in your organization. However, even if your skills are good, it is critical to your organization's success that you continually improve whenever possible. With a well-defined approach in these areas, employees will become more committed, engaged and satisfied --- and this results in less stress and greater productivity for everyone.
Thought for the Day
"The secret to high performance and satisfaction --- at work, at school, and at home --- is the deeply human need to direct our own lives, to learn and create new things, and to do better by ourselves and our world."
--- Daniel H. Pink, Author of
The Surprising Truth About What Motivates Us
Sources:
Barrington, L., Franco, L (Jan. 2010). Conference Board report on engagement.
Coffman, C. (2000). Is Your Company Bleeding Talent? The Gallup Organization.
Developing Performance Standards (2010). Vital Learning
Fairlie, P. (2010). 10 Ways to Make Work More Meaningful, Workforce Management.
Lockwood, N. et. al (2010). Motivation in Today's Workplace: The Link to Performance, Research Quarterly, SHRM.Schade, J. (2010).
Providing Performance Feedback (2010). Vital Learning.
Towers Watson (Oct. 2009). Managing Talent in Tough Times. A Tipping Point for Talent Management
Trinka, J. (2010). Action Plan to Achieve Breakthrough Improvement in Employee Productivity and Leadership Effectiveness, GovLeaders.org.
Trinka, J. (2009) What's a Manager to Do? GovLeaders.org
