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Two funny quips from the KnowHR blog that I just picked up on and wanted to share because they put a smile on my face.

In a Monday post titled What are your People Thinking? Frank Roche speculates on a few things they may be thinking, including "I need to check a box on my goals for my crappy performance review process." Now, we know somewhere, at least one person thought that very thing on Monday morning. And why? Probably because there's no clear relation between that goal and reality. Or anything they can relate to at least. So, that said, all of us -- HR and managers -- should take a moment and think about how to make a real connection between employee goals, and the big picture. So that it isn't our employees with those "crappy performance review" thoughts.

Last week KnowHR did a post on People I'd Like to Hire detailing a whole list of traits Frank Roche looks for. He then shared one person’s comment on their definition of employee engagement, which he calls the best ever -- "When they are there, they are there." Maybe that sounds too simplistic -- but it sums it up nicely in my mind. Engagement can be such a hard thing to quantify -- but you know it when you see it. An employee who’s mentally involved and invested in what is happening in the organization. While it may be hard to quantify, at least it can be constantly improved, especially with the right programs and processes in place.

Here's hoping your employees are happy to come to work and are engaged in what they are doing. And if not, that you're taking steps to change it.

  Mon, 12 May 2008 12:21:09 +0200

A recent post over at the Evil HR Lady blog got me thinking... should employee appraisals be fun or not? For those of you not familiar with Evil HR Lady - HR professionals write in with their questions and she provides the answers, usually with some humor and commentary. Someone recently wrote in about how her boss wanted her to find a way to make employee appraisals empowering and fun.

The response to the question was that "employees will NOT respond positively to any sort of "fun" appraisal process." She then goes on to say that empowering employee appraisals need to be objective and realistic. I think this is a great point, and an area where many organizations continue to struggle. While trying to make appraisals "fun" may seem extreme, I think I know what the manager was ultimately getting at, which is "how do we take the fear out of the process?"

We all know how scary employee appraisals can be - especially in some organizations or with some bosses. And we all have that nightmare story to share. Taking the fear out of the appraisal process should be a major priority, and one of the best ways to do that is to demystify the process. Engage employees year-round so they know what they are supposed to be doing and what is expected. Have them contribute. These may not be groundbreaking ideas for some organizations that have strong employee performance and talent management programs and systems in place, but these represent a major change in others.

So then, can appraisals be fun? It depends on your organization’s culture. Ultimately the appraisal process should reflect how the organization conducts business and manages its employees on a day-to-day basis. Any program or system must match with your organization’s approach in order to ensure acceptance from employees, managers and executives. Reminder emails that say "hang 10 dude" may not be a fit for a Fortune 500, but maybe they would be for a surfboard manufacturer.

More important than finding the fun in employee appraisals should be finding a way to do what Evil HR Lady suggests - make them objective and realistic - and the rest will fall into place from there.

Should employee appraisals be fun? What do you think?

  Mon, 12 May 2008 12:21:09 +0200

Great post over at Jon Ingham's Strategic HR blog earlier this week on Managing Talent Who Aren't Managers. It discusses how UPS identified its drivers as "talent" - which challenges how many organizations continue to view only managers or high potentials as talent.

UPS definitely has it right. In this case, drivers were considered talent as they are customer-facing and the true frontline of the organization. All too often, organizations tend to deem certain types of jobs as being highly expendable, and therefore not really worth the time or effort of including in talent management programs. What UPS found is driver turnover brought disruption in customer relationships, which is likely true in many organizations.

Talent management is important for all employees, regardless of what type of organization it is, or what their role may be. Consider this - the San Diego Zoo has rolled out an organization-wide talent management strategy, and certainly not every job at the Zoo involves a management position or sitting behind the desk.

Delicato Family Vineyards has everyone in the organization, including the cellarmaster and shift employees using its employee performance and talent management system. The result for both organizations has been a more strategic approach to HR and greater employee engagement. When employees at all levels are engaged it means the company performs better.

So next time you see a delivery person in brown, visit the zoo or have a glass of your favorite wine, think of how your organization could be doing a better job creating an organization-wide talent management strategy.

I recently saw a great article in HR Executive Online, by Tracey Levy.

It's a nice overview of what every manager should know about human resource/employment law issues. Number two on the list is principles of performance management. Levy writes that,

"Effective performance management can be essential to preventing claims of harassment, discrimination or retaliation. It can also mean the difference between retaining talent or losing employees with high potential who are frustrated by lack of feedback. Performance-management training should stress the importance of regular communication with staff; timely documentation of performance deficiencies; positive feedback when appropriate; progressive discipline; and coordination with human resources on performance-management issues."

An automated employee performance and talent management system can go a long way to providing the consistency and accountability needed to provide this kind of protection for an organization. Moving from a paper-based to a web-based performance management system will also help with Levy’s number five issue, record-retention obligations.

Employers have an obligation to preserve specific types of documents and information with regard to employees for defined periods of time and to retain relevant documents in the event of litigation. In many industries including healthcare and defense, these obligations have become even more complex and daunting recently.

According to Levy,

"Managers need to understand how to respond (e.g., what to delete) when they are notified that data-storage devices are reaching maximum capacity. They also need to be sensitized to the importance of complying with "litigation hold" memoranda (notices from in-house or outside counsel directing individuals to retain particular types of documents for the duration of an actual or anticipated litigation). "

With automated software, a record is automatically maintained and can be easily accessed whenever needed. This saves much time - and eases headaches - for HR administrators.

What do you think about the connection between employee performance and talent management, and the law? Do you use your system to safeguard you in any legal aspects?

The Zoological Society of San Diego operates the San Diego Zoo, a wild animal park and several animal hospitals and research facilities for endangered species. They have 2,400 year-round employees and approximately 3,000 employees during the summer. Born in the early 1900's, the Zoo has a long history, and an engrained culture. In 2005, the organization implemented a new strategic plan. Part of that plan included more employee accountability, and a focus on employee recruitment and retention. Tim Mulligan, their Director of Human Resources, was brought on board to propel the Zoo with an enhanced employee performance process.

The organization had never used employee performance and talent management technology before, so in addition to finding an efficient solution, Mulligan was challenged with shifting the culture of the organization to accept new technology.

The new system has transformed the employee review process for the organization. The reporting function of the system enables managers to easily run reports for critical talent management functions such as goals and succession planning. Prior to the implementation of the new system, only half of the organization's employee appraisals were completed. Now, Mulligan is pleased that all appraisals are completed. Their new pay-for-performance culture has resulted in increased performance.

Their high performers now have the potential of achieving a 200% more increase than in previous years. They strategically link their appraisal results to compensation by weighting both objectives and leadership competencies each by 50%, and the system provides year-round employee performance journals. The system has helped weed out the low-performers per Mulligan, and more focus is placed on the high performers.

Employee performance and talent management technology has helped Mulligan transform the working culture at the Zoo. Is it time for you to look at the culture in your organization?

For further details, read the San Diego Zoo case study.

Clark Nuber, one of the leading CPA firms in the country, uses HR solutions to ensure company goals are reflected throughout the performance process. The switch from a paper performance review system to an electronic system has increased efficiency at the firm.

With 140 employees, Clark Nuber has a reputation for being a leader in the Northwest, with a small company feel. Clark Nuber has five strategic goals that guide the direction of the firm. Each department also has its own strategic plan that fits into the overall company vision. According to Tracy White, Director of Human Resources, the company places a lot of emphasis on their people, and on maintaining a great company culture.

The HR plan is re-visited every year and tied to the plan of the organization. The company ensures their employees are included in providing input to the performance management process and feedback on goals. The key to the firm's success is making sure the company vision is reflected through the various departments. One of their drivers of success has been the implementation of a new employee performance and talent management system.

Their new review process has helped increase the performance of employees and has instilled confidence in employee confidentiality and encourages more communication, says White. It is error free, timely, and provides more feedback to their employees. They complete more frequent employee evaluations now, including 90-day reviews.

HR is also looking at job engagement and providing job evaluations directly after an audit. The new system ensures that employees can receive that feedback at any point in time. In fact, employees can request on the spot reviews and HR will send out an evaluation request within 30-45 minutes to the appropriate parties.

Do you have that kind of feedback capability with your appraisal process?

Find out more , read the Clark Nuber case study.

Lee Enterprises, the 4th largest newspaper company in the U.S. uses HR solutions to maintain a consistent company culture throughout various locations, and instill their culture into newly acquired divisions. A new electronic performance management system has increased their employee performance and weeded out under-performers.

A bit of background - Lee believes in producing local news, local decision-making, and they believe in being aggressive. According to their Director of Human Resources, Julie Stickney, their success relies heavily on individual employees and how they fit into the big picture.

Part of Lee's main strategy is staying focused on top priorities and reenergizing their staff every year with action steps. They publish a "Top Priorities" card each year, solely for this purpose. Their top executives confirm the priorities each year, with expectations and action plans laid out for each team, and the Top Priorities cards are distributed to all employees. All the work and rewards the organization engages in from that point forward must align with the top priorities.

One of the greatest challenges Lee Enterprises faces is maintaining a consistent culture across their nation-wide organizations, and embedding their culture into newly acquired companies. The company recently acquired Howard Publishing in 2002 and Pulitzer in 2005. Throughout their acquisition mode, HR must support the transition of the new areas into the Lee culture.

Lee Enterprises was able to implement an on-line employee performance and talent management system within three months. The implementation of an on-line system has helped Lee's culture remain intact by fostering constant communication. According to Stickney, managers and employees now have more exchange and dialog because the performance system requires accountability of each party. It has also enabled managers to talk to their employees more frequently about their performance rather than wait until a formal employee performance review process.

Turnover at Lee has increased at the lower performing rate. According to Stickney, people more easily recognize when they are not performing and they leave. This also means that the high performers receive more attention, more training, and more performance rewards.

It’s a win-win situation for the organization. Could your company benefit from something like this?

Read the Lee Enterprises case study to find out more.

  Mon, 12 May 2008 12:21:09 +0200

Mid-market companies face some unique challenges in talent management today. Your needs aren't the same as Fortune 500 companies. Your HR function is likely changing and expanding. More demands are placed on the HR department as the company grows, and strives to remain competitive in the talent acquisition and growth arena. So how you do implement HR technology solutions to help you grow and keep up with the competition?

We put together a white paper looking at several successful mid-market companies. In the next few days we’ll share their stories and strategies with you.

In the meantime, think about this: our overall findings are that the use of Web-based employee performance review and appraisal systems has not only increased efficiency; it has transformed culture, and increased company-wide communication and transparency surrounding performance. It can increase employee engagement and foster accountability for individual career growth. Technology is obviously only a portion of HR solutions and contributions to the end goal, but if leveraged properly, can make a significant difference in the success of an organization.

How are you using technology to make a significant difference in your organization’s culture and enable positive, dynamic growth?

  Mon, 12 May 2008 12:21:09 +0200

I picked up on this article on the Know HR blog about how Comcast's founder says he will work for $1/year, and other executives are accepting lower cash bonuses. This is a good story about executives taking positive steps, as all too often, employees are the ones whose bonuses will be reduced or even cut in a downturn. This is a great message on many levels: for Comcast employee and investors, for HR and the market as a whole.

With the popularity of pay-for-performance programs, organizations are increasingly tying employee performance to cash or other incentives. The reality is that for these programs to truly work, there must be a consistent application of rules at all levels in the organization. When the board of an organization approves large bonus packages for its executives, there needs to be an eye on the trickle down impact of this action. While executives are getting bigger bonuses, if the organization then turns around and cuts back a mid-level manager's pay-for-performance program resulting in a smaller bonus in a given year, that manager isn't going to see as much value in this program. If employees and managers don't buy into pay-for-performance, the program is failing to meet its true goal -- employees investing at a personal level and being rewarded for their achievements.

In rolling out and managing a pay-for-performance program, organizations need to ensure they have the right solution in place and a long-term strategy to manage the program as a whole. Ask the following questions:

  • How do you see the program growing or changing over the next two, three or even five years?
  • How will you ensure consistency in the application and measurement of the program at the individual level, and organization-wide?
  • How are you going to manage changes in the business' performance?

Without a solid plan that uses technology as an enabler in an overall pay-for-performance strategy, the program has the potential to backfire, making employees unmotivated by the program instead of inspiring them to perform at a higher level and drive the organization's success.

Pay-for-performance is a proven and powerful way to motivate and retain employees, but like all HR programs, it needs to be part of a bigger picture strategy. Pay-for-performance must connect with all other talent management programs to ensure that they are accurate and complete, and managed the same way across the organization. The power of pay-for-performance programs to motivate and drive engagement is based on these factors, otherwise, it become just another bonus structure, which isn't going to retain employees in the long term.

For more information on pay-for-performance check out this section on this blog: http://www.halogensoftware.com/blog/Pay_for_Performance_.php

  Mon, 12 May 2008 12:21:09 +0200

I just read a great post on Kris Dunn's HR Capitalist Blog about how Seth Godin suggested that the name of the HR function should be changed and then try to be exceptional.

For those of you not familiar with Godin, he is a well known and respected marketer, so HR isn't normally something he focuses on, but he makes some interesting points. His argument is that HR has grown up with a tactical focus, which was fine unless your goal was to do something amazing. He goes on to suggest that HR be renamed "talent" so that HR can change what they do. He acknowledges that this may seem like spin but:

"What if you started acting like the VP of Talent? Understanding that talent is hard to find and not obvious to manage. The VP of Talent would have to reorganize the department and do things differently all day long (small example: talent shouldn't have to fill out reams of forms and argue with the insurance company... talent is too busy for that... talent has people to help with that.)"

It's an interesting idea, especially when more and more organizations are trying to move HR to become a truly strategic function within the organization, and the benefits of this approach are proven. Perhaps the idea of human "resources" and its history relegates it to a tactical role in too many organizations, leaving little room for innovative thinking or truly strategic approaches.

In his post commenting on the Godin piece, Dunn argues that many in the HR profession are still personnel people, focused on transactions and that a "better plan is to offer up some professional credentials that transcend the SPHR, and focus on recruiting, performance management, innovation, leadership development, etc. The high end skills that allow someone to call themselves 'Talent.'"

Based on what we see everyday with our customers, there's definitely a mix of transactional and more strategic people working in HR across the globe. The most successful organizations we work with are those that get the idea that a tactical transaction is a means to an end, and not just something to check off the list. I’m not sure that HR needs a name change, but maybe we all need to take a hard look at how we’re doing business and where HR fits in so we’re moving toward being less about "resources" and more about "talent".

What do you think? Does HR need another name change?


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